How German craftsmen turn specialisation into higher profits and steadier demand

Struggling with fewer orders? These craftsmen prove that narrowing their focus leads to premium pricing and loyal customers. The secret lies in precision, not volume.

, and Administrator

2026 January 19 . 11:05 PM

1 min read

The image shows a drawing of a group of people working in a factory, with a wall, ladder, basket,... — The image shows a drawing of a group of people working in a factory, with a wall, ladder, basket, and other objects in the background. At the bottom of the image, there is text which reads "The Blacksmith's Workshop".

How German craftsmen turn specialisation into higher profits and steadier demand

Craftsmen across Germany are facing growing pressures from skilled labour shortages and falling orders. Yet some tradespeople are finding success by focusing on specialisation rather than diversification. Experts argue that narrowing expertise can lead to higher profits and steadier demand.

Alexander Thieme, managing director of A&M Unternehmerberatung GmbH, advises trades businesses on overcoming industry challenges. His firm helps craftsmen analyse orders, streamline processes, and refine service profiles. By adopting professional pricing and specialisation, they aim for better margins and smoother operations.

Specialisation allows tradesmen to work more efficiently and charge premium rates. Customers often pay more for superior quality, making expertise a key selling point. Firms that focus on a niche can achieve profit margins of 20 to 25 percent—far above generalist competitors.

Thieme’s team also assists with targeted marketing, helping businesses stand out in crowded markets. Instead of spreading resources thinly, specialised firms concentrate on core strengths. This approach attracts more orders and builds long-term customer trust.

While diversification might seem appealing, it can weaken quality, reduce profits, and limit growth. A&M Unternehmerberatung provides consultations to improve scalability and predictability. Their strategies help tradespeople secure ready-to-buy inquiries and steady workflows.

Specialisation offers craftsmen a way to thrive despite industry downturns. By focusing on niche skills, they can command higher prices and operate more efficiently. The approach not only boosts profits but also strengthens competitiveness in uncertain times.