The Design Builder's Blog

How and Why Contractors Need To Create Powerful Testimonials

Testimonials can be the most effective marketing tool a remodeler has and they are free!  They provide credible confirmation of your marketing message because they come from people who have actually experienced working with your company.   Fortunately, with some planning and the use of simple strategies, powerful testimonials can also be very easy to get. 

Selling and working on fun projects makes sense.  But working for the wrong clients can kill the fun in a project for its entire duration.   In this article I want to share how you can get and use testimonials as a powerful and effective way of demonstrating your company’s differences so you can attract both the right clients as well as the right projects for your business.

Think about what you are or should be selling

In his book “Selling the Invisible” Harry Beckwith talks about outside perception and inside reality. 

• The outside perception is what prospects come to think about your business by what they observe, much like looking at a picture. 
• The inside reality is what they come to know about you and your company by actually experiencing working with you and your team. 

I can personally share with you that understanding this difference and putting it to work within our marketing strategy caused a significant improvement in lead quality and lead quantity at my remodeling company.   By sharing testimonials that revealed how we did business we attracted customers who wanted us for our way of doing business, not just for the quality of our work.

A picture may be worth a thousand words but a well written testimonial can paint a specific picture that has the value of gold.

Four important considerations for creating powerful testimonials

1. I found that the best testimonials are short and concise, getting right to a main point.  Most importantly, they include the true emotions experienced by the customer as they worked with you and your team, and or as a result of how your company’s processes helped them achieve their true remodeling goals.
2. They are told like stories and include concrete examples from the customer’s experience that back up the main point and make the testimonial memorable.
3. I found that it is best to get testimonials in writing from customers sooner than later, while the thoughts are fresh in their minds and they are enthusiastic about what they are sharing with you. 
4. Always be sure to get written permission to use their testimonials.  If possible, get permission to use their name or initials with the testimonial, as well as the town they live in.   Including the source makes the message all that more credible.

 

Summary

In a lot of ways testimonials are like referrals.  If contractors wait for them to happen they will get some referrals and some business.  On the other hand, if contractors are proactive in causing them to happen and are strategic about causing the inside reality they include, contractors can get great customers and a lot more business.

In a future article I’ll share some examples and some specific strategies you can use to cause and secure powerful testimonials.

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Seven Reasons Why Most Contractors Will Never Be Able To Retire On Their Own Earnings

Here is a wakeup call prediction for contractors and for tax payers as well;

Most residential construction business owners will never be able to retire.  They will have to work until they die or are too old to work anymore.  If they don’t or can’t work until they die, then they will have to get on the government dole so they can get housing and food to keep them alive. 

The same is actually true for most Americans.  According to an article on the Money Morning web sitecurrently retired Americans have less than $25,000 or less in savings and investments, and 31% have less than $1,000.  It’s sad to me to think though that construction business owners, after years of owning and running a business, won’t have enough money or investments accumulated so they can support themselves and their significant other during retirement.

Here is another scary fact found in that same Money Morning article.  47%, of current retirees were forced to retire early, mainly because of disabilities, poor health, or the loss of a job and the inability to get a new one.

Let me offer just a few reasons why I am so sure most contractors may never be able to retire:

1. In many of my seminars I ask contractors to raise their hands if they are on the path they need to be, financially, so they can retire.   It’s rare that 10% of attendees raise their hands.  I also think many assume they will be OK and raise their hands.
2. Most contractors don’t charge enough to properly run their businesses and pay themselves for their efforts.   They seem satisfied with earning just enough to stay afloat in business and in their personal lives.  In fact, when they take into account the number of hours they work each year, most admit they earn less per hour than most of their employees.  Some even admit they make less per year than their carpenters.  I know a good number of them, probably out of embarrassment; don’t admit their financial short comings.
3. A good number of construction business owners don’t make enough money to support their families.   In fact for a good number of them, because their wives have jobs and therefore provide the family’s health insurance, they are able to keep their business doors open and pretend everything is just fine. 
4. Only about 20% of construction business owners know the true cost of being in business.   Of the other 80% a majority may be able to estimate project costs accurately, counting very stick and brick, but then they are guessing on the real break even burdened cost of estimated labor hours and also use the wild ass guess method (WAG) when it comes to the markup they use to cover overhead and profit to price their jobs.
5. In addition to using the WAG to price jobs, most contractors have no idea how overhead and profit works.   As Melanie Hodgdon points out in her Remodeling magazine article titled “Four Ways Hopeful Thinking Can Ruin You”, many contractors say “Yeah, that job was a mess, but at least I didn’t lose money on it."   The sad reality in this assumption is that the job didn’t cost more than they sold it for, but they didn’t earn any money to cover their overhead and or any profit.  So in reality they did lose money and there will be no profit on that job to save for retirement.
6. Most construction business owners I speak with haven’t done any retirement planning.  In fact 56% of American workers haven’t bothered to figure how much they’ll need to retire comfortably either. (Source: Employee Benefit Research Institute) How then could these contractors even know how much money they will need to retire and when they can actually retire?   For these contractors I am pretty confident they won’t have what they need.
7. The last and my final reason (although there are plenty more) most contractors will never be able to retire is because they see themselves as contractors instead of business owners.   It’s a simple fact to recognize that when a business sells at the right price it earns a profit.  But when the business owner straps on his tool belt he is only earning a wage. 

So, what should contractors in this position do?

Here is a short list:

• If earning a wage isn’t earning you enough to retire on, you might want to learn how to become a real business owner.
• If you are using the WAG method to price jobs you might want to advance your math skills and or find someone who will do the math for you.
• If you have been selling on price to get work you might want to invest in some professional marketing and sales skills.
• If you won’t do anything about these challenges you might want to look into how to apply for government assistance now so you’re ready to do so when your body eventually gives out.

Guest Blogger: Beth N. Davis is the owner and operator of BD Contractor Services where she and her team create and implement dynamic marketing plans and trainings for home improvement professionals nationwide. Visit www.bdcontractorservices.com or connect with her on Facebook.

Creating A Referral System At Your Remodeling or Construction Business

Referrals have long been the lifeblood of the remodeling industry.  To ensure a steady stream of referral business, you need a system. Follow the steps below and you will be on your way to creating a simple and manageable referral system.

Lay Your Foundation

Before you begin to build your referral system, you must first take stock of the relationships and connections that you can leverage for success. Take some time to list all of your current and past clients, individuals with whom you have a personal relationship (friends, family, etc.) and those with whom you have business relationships. Be thorough.  The quality of this list will affect the overall quality of your referral system. 

You will likely want to access information about these individuals in the future so be sure to create a database in a format that you will use whether that be a Rolodex or an app on your smart phone. I have used an Excel spreadsheet for this task for over a decade and update it weekly. From this list, go ahead and delete the names of those you would not choose to work with. Identify 2-3 characteristics of the remaining individuals that highlight their importance or relevance.

Take Action

Making the ask, that all important action item that takes you from plan to procedure, can be the most difficult part of a referral system for many people. This is when you begin contacting your network and directly asking for referrals. There are many ways that you can accomplish this, but, for the sake of consistency, I recommend that you rank all of your prospects and contact 5-10 per day with a personalized version of a templated message. Whoever handles your administrative functions will be able to assist you with this. 

If you want to contact all of your prospects at once, I recommend doing a physical mailing and being sure to personalize the letters. For best results, make sure that you cover three specific things in your letter: Where the person knows you from, what specific traits about them make you think of an ideal client and what type of clients you want to connect with.

Asking for referrals is like planting seeds. You may not see immediate results, but people will start to think of you as they move through the world and the results will begin to show over time. This method is meant for steady and dependable referral income.

Exceed Expectations

It isn’t enough to secure a referral and sign a contract. Once you have sealed the deal, you need to deliver. You and your staff should always shoot to meet client expectations but it is even more important when that client is a referral.

Remember that it is not only your reputation, but the reputation of the person who referred the client to you that is weighed here. There is no faster way to lose credibility with a client than to provide poor service for someone they have referred to you.

Don’t Forget to Measure

Find out where (and who) your new customers are coming from. Ask for feedback on service and quality and make sure that you integrate the feedback into your business practices if they prove to be relevant. Committing to constant improvement shows your current and past clients that you care.

Follow Up

Always thank people for their referrals. Part of your referral system should include following up with individuals who have given you referrals in the past.  Gifts and points are nice, but the real reward for these customers is your heartfelt appreciation and the ability to connect someone they care about with quality service. 

Everyone in the remodeling industry wants to work with dynamic clients who pay on time while creating beautiful projects in the process. Doing this without spending a fortune on advertising will be a reality when you look around you and leverage your relationships for maximum results.

Guest Blogger:  Jayme Cook loves DIY projects and previously worked in the home building and construction industry. Jayme studied writing in Wales, UK and is now an English instructor living in Phoenix, Arizona.

Where Craftsmanship Matters the Most: Assuring Quality on Your Remodeling Jobs

Author and computer software consultant Robert C. Martin once said, “How can we make sure we wind up behind the right door when the going gets tough? The answer is: Craftsmanship.” This statement rings true in many fields, but especially so for remodelers. Craftsmanship is what's behind our sense of awe and admiration when we look upon a job well done—it's one part knowledge and one part art, with a bunch of pride, planning and elbow grease bringing up the rear. Every job is important, but some require a higher level of craftsmanship than others. Here's where a master's touch really counts.

Green Roofs

A growing trend in residential design is green roofing. These rooftops integrate actual foliage into the roof structure in an attempt to keep interior rooms cool in warm weather and warm during the cold. Most professionals use modular systems composed of individual plastic trays pre-lined with plant life and a non-soil base lined along the rooftop. Growth occurs at a rapid pace, creating an organic canopy to shield the home from the elements. A large-scale installation of a green roof requires an expert—this isn't something you want to tackle if you've no experience under your belt.

Insulated Water Pipes

Insulated water pipes will boost a home's energy efficiency. This sustainable feature will add to the life expectancy of the pipe system as well moderate the water temperature throughout the residence. Foam tubes made of rubber or polyethylene encase the metal piping to offer better quality and use—just make sure an expert does the insulating.

Energy-Efficient Windows

High quality, energy-efficient windows are essential in designing a masterfully crafted home. Many contractors provide windows that help keep heat inside of the home during the winter season and keep indoor temperatures cool during the summer months. Alternatively, poor quality windows can result in as much as a 30 percent loss of energy for consumers. Not all windows are created equal—while many can help reduce some of the energy loss, only high-quality selections installed with skilled precision and the proper equipment can fully protect against heat and cooling leakage. Contractors take note. Check out the windows section on the Champion Home Exterior webpage. This company displays its window offerings clearly and also provides helpful information on the left side of the site. Setting up your offerings in a style like this makes it easy for consumers to navigate your webpage and deliver the craftsmanship they are looking for from a contractor.

Solar Panels

More and more homeowners are requesting installation of solar panels to save money and energy. Photovoltaic panels harness the power of the sun and deliver it straight to the home on which they are installed. Solar power adds value to the property and usually comes with tax incentives, but it should only be installed by those with experience. There are lots of DIY kits out there, but we don't personally know of any that produced craftsman-like results.

When it comes to remodeling jobs, there is no replacement for quality craftsmanship. From the foundation up, work of integrity guarantees high-caliber results. With the right planning, the expertise of professionals and personal commitment, your work will reflect nothing but the best.

Content Marketing Options For Contractor Web Sites

Content marketing has become a great way for remodelers to attract prospects to their web sites.   By publishing content that your target customers would liking be searching for, and optimizing that content for SEO purposes, a business can help those prospects find and visit their web site.   Just getting them to your site won’t ensure a sale, but if you can get them to your site you can use additional content to help keep them there.  Content marketing alone won’t turn those prospects into customers, but if you can keep those visitors on your site you might be able to accomplish two very valuable marketing and sales goals.

Two goals for content marketing

The fist would be to pre-educate prospects about your business, your products and or services, and how you and your team do business.   This can save a lot of time during the sales process.    By pre-educating them at your site on a variety of considerations using additional content, you will not have to spend as much time doing so at a live sales call.  Busy contractors can speed up the sales process and gain more time for other business activities if they invest in publishing the right content.

The second thing it can help you accomplish is prequalification.   Contractors can’t and shouldn’t assume every prospect will buy from them.   By using the right content at your contractor web site visitors can actually prequalify themselves.   If they like what they see and read, and they determine that what you offer and how you do business makes sense for them, they will likely contact you.  On the other hand they may decide yours is not the right company for them and move on to find a different contractor.   This too saves the contractor a lot of valuable time because the contractor will be spending less time qualifying and more time helping qualified prospects who are much more likely to buy.

Content marketing methods you can use

Content marketing can be done in a variety of ways including blogs, white papers, infographics, photos and many other mediums.   The infographic below offers a matrix of content marketing types.  PRWeb says they created this matrix to show how different types of content can appeal to different consumers and offers facts or suggestions about each. The top shows the different types of content, while the bottom explains how those pieces of content can be used.

Not all of them will be practical for all businesses, but it’s good to know what your options are and what other businesses may be using to do their content marketing.   Also, as your business grows you may want to eventually take advantage of additional content marketing methods to improve and or increase your marketing results.

3 Reasons Contractors Don't Share Financial Info With Employees

I recently read an interesting article about how much a business owner should tell their spouse about their company finances.  Two different opinions were shared and explored.   I’m on the side of sharing the info myself, but certainly not everything in detail.

That article got me to thinking about why so few construction and remodeling business owners share financial information with their employees.   First, I’ll offer a few great reasons to do it.  I hope the benefits will motivate more business owners to do so.   Then, I’ll offer my thoughts on why business owners avoid doing so. 

3 reasons to share your business financial information with employees:

Construction business owners who keep all the financial information about their businesses to themselves are definitively missing out on several potential benefits.   Simply put, by sharing financial information you can accomplish at least three things that will help lower your financial anxiety and help you make and or keep more money:

1. You can get the opinions and advice of others so you can be more confident in your numbers and using them to make sound business decisions.  Getting insight from others can also help you avoid costly mistakes.
2. By involving the right employees with the creation and interpretation of business financials you can share the workload required to create them.  This can make getting your financial reports much more timely and therefore improve their accuracy.
3. By mentoring employees on how to use financial reports you can help them learn to think like a business owner so they too can make sound business decisions.   This is an important and required step if you ever want to remove yourself from the day to day management of your business and or offer a profit sharing plan to employees.

So then why do so few owners share their financial information?

Let me also offer three common reasons why many construction business owners can’t or won’t share business related financial information with their employees:

1. The most common reason is because the business doesn’t have a real financial system that properly separates and tracks costs and expenses.  For these business owners their financial system is really no more than a checkbook showing money coming in and going out.  Without the ability to identify and separate your actual job costs from overhead expenses there is no way your business can get a meaningful profit and loss report.   These business owners don’t share the information because there really is nothing of value worth sharing.   Eventually, once a year for most of these business owners, their accountant gives them the good or bad news when their tax returns are ready to be filed.
2. Often financial information is held back because the business owner is embarrassed that he or she doesn't understand the business finances well enough to explain them or answer questions about them.  This is not good.   Imagine what a great employee will think about his boss and or the business if he discovers the owner is guessing at the financial health and well being of the company.  Think about it.  If you were an inspired and career motivated employee would you want to invest in your career at a business that is in the dark about predicting and measuring profits?
3. During my years of experience providing financial consulting for construction business owners I have had many owners share with me their concern that if they educate employees about and share company financial information with them it will only serve to help them get ready to leave and start their own businesses.  This could be true.  On the other hand I found by educating my employees most of them figured out they didn’t want all the stress and financial responsibilities that came with being a business owner.   However, those who did leave and started their own businesses where in a much better position to be financially successful.   As a business owner I found personal satisfaction in helping make that possible.

Some words of advice

If this articles speaks to what is happening at your business it’s up to you to do something about it.   I definitely recommend you do not consider growing your business in any way, or sharing the information with employees, until you and your business can produce and interpret accurate business financial reports.   To help you see if doing so might be worth it try this self quiz to see if a properly setup financial system can help you and your employees improve business profits and reduce financial anxiety.

10 Causes of Construction Business Owner Financial Anxiety and What to Do About Them

Anxiety affects our whole being.  It affects how we feel, how we behave and has very real physical symptoms.   It can be exhausting and debilitating.  Mild anxiety is vague and unsettling.   Contractors with lower total sales volumes might be suffering already from what I call mild financial anxiety.   Then, as the number of dollars going through the business increases, say above $4-500K, a contractor can suffer from severe financial anxiety, which for some business owners can be extremely debilitating.  Not only can it be personally debilitating, it can also have devastating effects on the health of the business.

Below is a partial list of causes of financial anxiety for construction business owners.   I see these causes all the time when I work with contractors to eliminate them.  If you already have financial anxiety consider how many of these describe you and your business.   If you plan to grow your business make note of these causes.   You might want to address them before you grow.

Causes of financial anxiety

1. Not knowing the true costs of being in business as your business grows and being surprised about the costs when the bills come in.
2. Not knowing in advance if you will have enough money to pay your bills and or meet payroll when they become due.
3. Not knowing how much of the money in your checking account is profit and how much is unearned income for work not yet completed.
4. Not knowing which project types are making money and which are not.
5. Not knowing how much workers compensation insurance will actually cost you until you get audited.
6. Not knowing if you made or lost money all year until your accountant does your taxes.
7. Guessing at what to charge for labor rates.
8. Guessing at what markup you should use.
9. Wondering whether you will be selling or buying a job when negotiating price with a prospect.
10. Fill in your own anxiety trigger(s) here: _______________________________________

What contractors can do to eliminate the anxiety

All of the causes listed above can be solved by creating a true financial system for your business.   With a properly designed construction business financial system, and an accounting software program like QuickBooks to support it, your business can have the ability to:

1. Predict overhead and direct costs
2. Predetermine your mark-up and labor rates
3. Track actual expenses against budgeted using the same format as when they were determined
4. Make apples to apples estimated to actual job cost comparisons
5. Track revenue and gross profit margins by cost categories (IE: materials, labor, subs, equipment...)
6. Predict and track actual Workers Compensation exposure
7. Potentially reduce workers comp costs if your state and or insurance provider allows you to use multiple classifications for the same employee
8. Track accounts receivable and accounts payable to know in advance if receivables will cover payables
9. Tell you if you are ahead or behind your customer(s) regarding money collected versus work performed
10. Track revenue and earned gross profits by profit centers (IE: residential vs. commercial, remodeling vs. new construction...)
11. Compare produced margins for project types your company performs (IE: kitchens, baths, roofs, decks, handyman...)
12. Fill in your desired function here: _____________________________________________

Get the help you need to do it right!

Just as most home owners shouldn’t design and construct their own home, most contractors shouldn’t attempt to design and construct their own financial system.   Without the proper knowledge and experience to do so you could be putting your business and your own personal health through unneeded anxiety.

If you see yourself in what I have described here, get the help you need to improve your business financial system and your health.   Find an expert to help you.  The cost to do so may be far less expensive than the health care bills if you don’t.

10 Ways Some Architects Do A Disservice To Contractors and Home Owners

If you have been a contractor any length of time you have probably had negative experiences trying to work with architects.   You have probably also witnessed the frustration, disappointment and financial challenges some architects cause for home owners due to their methods of doing business and how they do design development.   Keep in mind I purposely said “some architects”.   Just as there are good and bad contractors, there are good and bad architects. I have personally worked with a handful of great architects.

I know I am taking a risk here and that I will definitely get some passionate comments from architects.   That said, below I offer 10 ways I think many architects do a disservice to contractors and home owners.  Feel free to offer additional reasons and or to dispute my list.   All opinions are welcome, as long as you are respectful and appropriate when doing so.

1. The architect either invites multiple contractors to bid on the project or gives the homeowner the names of 5 (or more) contractors to bid on the project, essentially setting up an auction.  So 5 contractors and all their subs do free estimates for the chance to be the lowest bidder (biggest loser).  Then when the home owner actually buys from a contractor they are the ones paying for all the free estimates that contractor did for the people who did not buy.  I think it would be interesting to hear the reaction home owners might have if they knew they were paying for other home owners’ free estimates.
2. Do you know any architects who have estimating training and or experience? Many architects say they can and will design to a budget and or quote square foot costs to their clients that are unrealistic.   Then if the contractor bids come in over budget many architects will blame all the contractors for being over-priced.   These same architects then even have the nerve to charge the home owner to redesign the project to get it closer to the original budget.  Why do home owners put up with being treated that way?  
3. Many architects create multiple designs and plan sets for the same project, most of which ever get built from because they do not take into account all of the related considerations (Budget/cost, zoning, soils, incomplete plans/specifications…). When this happens often times the home owner spends so much money on the unusable designs that they have to then scale back the project budget.  Unfortunately the home owner pays for it all the wasted services and contractors waste their and their sub contractors’ time doing multiple estimates, typically all for free. 
4. Some architects charge contractors a referral fee for introducing them to the client, but tell the contractor they don't want the client to know about it.  In my opinion this is not ethical.   I have no problem with the referral fee as long as the contractor is OK with it.  But hiding it from the client is deceptive because now the cost of the referral is a cost of the project, and, in essence, the architect is asking the contractor to lie about it.   I don’t think contractors need to volunteer the information.  But, if asked about it by the client, or if it’s a cost plus contract, I think the contractor needs to be honest.  For T&M contractors, letting the home owner know that their markup on costs has to help cover the cost of the architect’s referral fee could help justify the markup percentage.
5. The architect provides incomplete and or conflicting plans.  This one creates big challenges for the homeowner as well as the contractor.   If the contractor points out the missing details he can be accused of throwing the architect under the bus and probably won’t get the job.  On the other hand if the items are missed or ignored when the contractor provides a price the missed items become change orders and the home owner has to pay the additional cost.
6. Many architects take the plans too far before knowing if the customer can actually afford the project and or if the project can actually be built.  I think this is one of the worst things architects do to their customers.   Wouldn’t it make sense to make sure the there are no zoning issues and that the project and or the scope are realistic before spending the client’s money to bring the plans from concept to ready to apply for permit?
7. Some architects require the contractor sign the AIA contract.   That contract essentially says once under contract the contractor has to eat any additional costs to meet building code requirements even if the plans and or the design don’t meet code.  Shouldn't a licensed architect be responsible to design to code and be responsible to their clients for the additional costs of what they missed?
8. Not allowing the contractor to meet the home owner before providing a bid.   I’m really not sure why architects do this.   Why refer a contractor to the project but then not allow both the home owner and the contractor the opportunity to meet and make sure there is a good fit and that the budget is realistic before asking the contractor to invest a lot of his and his trade partner’s time assembling an estimate?  I think this may have to do with number 2 above.   The architect has no idea what the project will really cost and doesn’t want to risk that the contractor will help the home owner figure that out.  If contractors allow this to happen and still submit a bid, shame on them!
9. They over-design the project past the agreed budget without providing realistic insight about the additional costs.   Again, assuming the architect agreed to design to a budget, refer to number 2 above.   If the home owner asks for things and or the architect suggests things that will blow the agreed budget, shouldn’t the architect make the true price difference clear to the home owner first and ask if they will commit to increasing their budget before expanding the design and collecting bids from contractors?
10. The architect specifies products he has no experience with.    This one has caused many contractors a lot of money and or lost sleep; including me!  Often the products can be difficult to procure, may be new and have not yet been proven to serve their intended purpose long term, and or may be way outside the client’s budget.  By doing this the architect often creates financial hardships for the contractor and the home owner, and can cause serious project failure and or warranty problems that typically fall back on the contractor, not the architect.

So, that’s my list. 

I have more but I think that’s enough to get the conversation going. 

By the way, if you are a contractor or a home owner reading this, there is a better way.  True Design/Build Contractors use a process that can eliminate every one of the challenges listed above.  Check out this article titled The Advantages of Design/Build for Remodeling Clients for more on why Design/Build might be a better way to go for many contractors, home owners and even for architects.  

The Advantages Of Design/Build For Remodeling Clients

Selling Design/Build isn’t easy. Many consumers haven’t heard about it and most of those who have really don’t know that much about it. If you want to sell Design/Build, or for that matter sell any product or service, you must let the buyer  know what benefits it will have for him or her.

Rather than put on a dog and pony show for your clients, take time to uncover their real concerns, underlying motivations and project requirements. Then share with your clients those advantages of the Design/Build process that address what you have uncovered, provided you are confident in taking on those responsibilities. As more contractors and consumers come to understand and realize the benefits of the Design/Build process, selling and buying the concept will become easier for everyone.

To be successful with Design/Build consider the client’s advantages and the Design/Builder’s responsibilities described within this article as interdependent.

Single Source Responsibility

Perhaps the most appealing and easy to recognize advantages that Design/Build offers are the convenience and comfort of one-stop shopping. The client looks to a single entity to take full responsibility for design, construction and satisfactory completion; delivering the project on time and on budget. As a natural consequence there is less finger pointing because as ideas are generated, all team members make decisions with a cooperative approach. This means greater efficiency, cooperation instead of conflict, and a better project for the time and money invested. When this team approach works well, it fosters an enjoyable and mutually beneficial way of doing business for the client and the Design/Build team of professionals. As the design phase of the project moves forward, all parties get to know each other while working out and establishing the terms of the relationship. This establishes trust as well as a mutual respect for the realities of living through a project, long before the dust takes over, rather than trying to do so while the dust is created. These advantages are often removed or compromised if those involved, including the client, work separately of each other during the design stage.

Cost Control

Trust is the key consideration here, and can become the client’s most valued benefit.  Provided that a realist budget is established and agreed upon prior to entering into a Design/Build agreement, the Design/Builder takes on the responsibility of protecting the budget as design happens. Do not sell this as an advantage unless you are confident that you and the client agree on the scope of work. Savings and or budget control are then achieved through better planning. The Owner can exercise his desired degree of control over design, with the added advantage of knowing the cost implications of each decision as it happens. In the client’s eyes, the trust will be broken if he or she sees the Design/Builder as the cause for going over budget. It’s their money, not yours. To avoid this perceived breach of trust, before you offer or entertain alternate design ideas that will increase costs, ask your client for permission to spend more than the agreed budget.

Promising your clients cost control must be backed up with design and construction expertise, as well as the company systems required, to know what should (or will not) be included and how much it will cost. By having this ability, professional fees such as engineering or surveying are kept to a minimum as they can be determined before beginning design of the project. The client benefits by having a guaranteed maximum price that is set as soon as the scope of the project is determined.

Quality Control

Quality of the design and construction of the project can happen by default if the Design/Builder’s team is working “together” to meet the client's performance requirements. The architect, engineer, and contractor are able to focus on the project, with an emphasis on quality, rather than protecting their own individual interests. The lines of communication are simplified and the chances for misunderstandings are reduced. The construction expertise of the contractor and the design expertise of the design professional are melded together to produce a greater value for the owner than that which might be realized if both were working independently, perhaps in a vacuum. Additionally, quality is maintained by the discovery of most problems before starting and the implementation of real solutions.

Quicker Delivery Time

The client saves time and trouble by dealing with a single source for all matters rather than separately with a contractor, an architect, an engineer, and subcontractors. Bidding periods and redesign time are eliminated. Overall time to design and build the project is substantially reduced because design and construction activities overlap. The contractor can proceed with early procurement of critical materials and scheduling of labor and subcontractors for greater effectiveness. This means the project can be on the contractor’s production schedule sooner.

If it is necessary to meet client’s deadlines, Design/Build lends itself readily to "Fast Tracking", where construction begins while detail drawings are still in process. The project can be completed in less time because work can begin before all the elements of the design are complete. For example the foundation can be completed to beat the frost, while the selection of windows and doors and how they will be detailed have yet to be completed. This fast tracking can reduce the owner’s interim financing costs and will permit the owner to occupy the project at an earlier date.

Marketing Strategies For The 5 Typical Stages Of A Remodeling Consumer's Buying Cycle

In a previous blog I wrote about how a contractor’s web site marketing can be used to speed up the sales cycle.   In this blog I offer specific marketing strategies remodeling contractors can use on their web site during each stage of a remodeling consumer’s buying cycle.  These strategies will help prospects figure out what is important to them and whether or not your business is the right one for them to work with.  These strategies will also help them get there a lot faster and save the contractor lots of time!

Awareness stage:

This stage is about driving traffic to your company web site.   The goal should be to make your visitors aware that your brand exists and of the products or services you offer. It’s also about helping them discover that they have a particular problem or need, which your company is qualified and able to help them with.  In this stage you publish blogs, articles, videos, and other regularly posted content that has been optimized using SEO tactics so they can find your web site using key words.

Research stage:

Once a potential customer knows they have a need they’ll begin researching options for what they can or should do to fill that need. During this stage of their buying cycle you’ll want to provide them with white papers, checklists, and or e-books. The strategy should be to provide more in-depth content that describes the problem(s) they have and outlines step by step solutions—which your company just happens to be able to help them with.  This is also the lead generation stage. By keeping track of who downloads information from your site you can separate the consumers who are genuinely interested in what you offer and how you can help them from others who are just casually browsing your site.

Comparison stage:

This is where the prospect begins actively seeking out a solution to their problem and a contractor to do business with. They’ll be looking at your brand, but they’ll also be looking at other companies to see what options might be out there for them. You need to help them decide whether what you and your business provide will be the best solution to meet their needs and purposes.    At this stage you should provide them with case studies. Properly written, case studies explain how other people in the same situation went about solving their problem. 

Purchasing stage:

In this stage the prospect is finally ready to take that last big step. To help them choose your company think of content you can provide to give them that little extra push in the right direction. What do other consumers have to say about your company? Why is working with you a good investment? To give your case studies credibility include past customer testimonials about why they chose your company as the best one to help them.

Repurchase stage:

If they choose your company and become a customer keep in mind the importance of keeping them as your customer. After completing their project keep in regular contact with them through periodic e-mails and newsletters to make sure they remember your company and the full list of what you do.  The goal is to make sure they think of you the next time they want to buy and know already that you can help them.  My experience shows that the most successful remodeling and construction companies are the ones that maintain relationships with their past customers.   Keeping your current customers is far less expensive and much easier than finding new ones all the time.