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Shawn McCadden

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As Construction Recovers, Look at Business Operation Tools

Posted by Shawn McCadden on Tue, Dec 09,2014 @ 06:00 AM

As Construction Recovers, Look at Business Operation Tools

Business tools for contractors

 

 

The construction industry that drives so much of the contracting business is steadily gaining throughout the nation. U.S. News & World Report reports that new home construction grew almost 22 percent in 2014. Moreover, builders themselves are optimistic, according to the National Association of Home Builders, which reports its members have seen an increase in "serious buyers."

 

This is great news for the contracting business. But with the recovery still a bit fragile and lenders reluctant to release loans, smart contractors need to be able to respond to work requests quickly. This means working smarter, including the work that runs the business. Luckily, there are tools that can let them focus on their craft and leave the business end in responsible hands, too.

 

Outsource Complex Financial Tasks

Mountain_of_pitch_book_binders-wrLots of small businesses, including many contractors, outsource accounting services like payroll and tax preparation. This is a smart move; tools like QuickBooks and NetSuite are constantly improving their services and lowering their costs. Even better, they are hosted online—in the cloud—so they can be accessed from any secure Internet site, reports Forbes. Online accounting services are very good choices for new firms and small ones that do not have a large enough accounting infrastructure to handle all functions and future growth. They're also heavily focused on security and maintaining backups of their own clients' data.

What about revenue management? This is not part of standard accounting services like QuickBooks. But managing your revenue is how your company stays afloat and can perform tasks like payroll and paying your own suppliers.

Customer management firms like Chargify have filled this important gap, providing clients from businesses of all sizes with online, cloud-based services that include:

  • Accepting payments from several sources, including ACE, eChecks, PayPal, and credit cards.

  • Issuing refunds.

  • Emails to customers that handle electronic invoices and receipts, payment reminders, and upcoming credit card expiration dates.

  • Coupons and discount redemption.


Best of all, these online services guarantee their accuracy and post solid customer ratings.

 

Go Online for Business and Legal Filings

Online legal services for contractors

Most contractors are small businesses but still have to file the same paperwork as the big guys. Unlike the big guys, they don't have in house attorneys and generally don't have time to run downtown to talk to a lawyer about filing for a business license or how to get a federal EIN.

Online legal services can help with the routine legal issues that don't involve the courts. Services like Legal Zoom and RocketLawyer provide small business owners with information and assistance that can help them understand how to address common legal topics that often arise in the course of business, such as:

  • Whether to file as an LLC, partnership, or S-corporation.

  • Steps to take to ensure corporate compliance.

  • Debt collection advice.

Subscribers also get access to common legal forms like employment contracts, cease-and-desist templates, and nondisclosure agreements. On call lawyers are available to answer general questions around the clock.

 

Go Online for Office Software

Perhaps the biggest online industry is office products like word processing and spreadsheets.

Small businesses used to shell out a lot of money for office software and then spend more on antivirus software, backup systems, and of course upgrades. They don't have to do this anymore with online services from well-known companies like Google and Microsoft.

To get Google's free online office products, just open a free Google account which includes the famous Gmail email service and more free services:

  • Online drive that stores virtually any kind of document uploaded to it.

  • Word processing.

  • Spreadsheet.

  • Presentation slide.

  • Forms.

  • Drawing tool.

If you or your office staff can't live without Microsoft Office, the online Office 365 delivers the full suite of Microsoft products, including online meeting services, upgrades, and security. Prices start at $12.50/month.

 

Ruth_Ann-wr

 

Guest Blogger: Ruth Ann Monti is the founder of TimeStorm Communications, which provides original content, copywriting, social media and marketing services for entrepreneurs and small business. She lives with her son and two dogs in sunny Scottsdale, AZ.

 

Topics: Business Financials, Technology for Remodelers, Legal Related, Free Stuff, Business Management, Guest Blogs, Software Related

5 Success Limiting Actions That Limit Long Term Profitability

Posted by Shawn McCadden on Thu, Oct 02,2014 @ 01:15 PM

5 Success Limiting Actions Contractors Should Avoid To Maximize Long Term Profitability

Making more money as a contractor

 

 

Having grown my own contracting business and worked with hundreds of business owners seeking to do the same I have come to recognize five specific things I think dramatically limit a business owner’s success and potential long term profitability.   If you plan to grow your construction business deciding how you will address these five actions can set you on path that is more likely to support your long term professional and personal levels of success. 

 

Not having an exit strategy

If you have no idea where you want to end up any path will take you there.   On the other hand if you think about where you want your business to be in 10 to 15 years, and what role you as the owner want to have then, it’s more likely the decisions you make along the way will support and maximize your ability to get there.   Consider going down the wrong path will eat up a lot of value time and money that could have been used to help grow your business and will reduce your potential retirement funds.

 

Hiring for today without thinking about tomorrow

Hiring tip for contractorsMany contractors hire for today.  By that I mean they hire the help they think they need for the projects they have on the books and the current size of the business.   If you plan to grow your business these employees may not have the skills or desire to grow with the business.   If you think about how much you want to grow, the organizational charts you will need at different stages of growth, and the job descriptions for each position on the organizational charts, you can make better hiring decisions.   And, long term, you will have less employee turnover and therefore lower training related expenses over time as well.

 

Not setting goals and metrics

Letting your business grow without having measurable goals along the way can lead you and you’re your business down a path to mediocre results.  Without a goal for example for work produced and sold per month you won’t have an objective target to hold you and your employees to as business happens.   Without goals and metrics the business may just accept whatever level of performance happens by chance.  On the other hand, by having established goals that need to be answered to, if you come up short of your goal in one month the new goal for next month can be increased to make up for the shortfall and get you back on track.  Knowing you are behind on your goals you and your team can make alternate plans and the changes required to catch up.

 

Not establishing your target customers and project types.

Target marketing for contractorsBeing the” Jack of All Trades” to everyone who calls your business may work for a self employed handyman or carpenter, but that’s not a good strategy if you want to be a construction business owner with a growing business.   Deciding your niches can help you streamline and personalize your business systems so they serve both your business as well as your customers in a consistent and reliable way.  For example becoming a Design/Builder may limit who will do business with you, but on the other hand making a commitment to that business delivery method you can develop a marketing and sales process that generates the qualified leads and sales you need and will help your business become known as a Design/Build expert in your desired target market area.  My own experience made it obvious to me that consumers are willing to pay more for experts than they typically will pay for a “Jack of all Trades”.

 

Not getting the professional help you and your business need

Making more money as a residential contractorSuccessfully growing a residential construction business is not easy and takes time.   If you go it alone you will likely attend many sessions at the “Lumberyard School of Hard Knocks”.  That educational institution can be expensive, frustrating and may require you scrap a lot of what you have done in your business because it will no longer work well enough as you grow the business.  With the right professional help and guidance you can reduce the overall long term cost of your path to success and you can get there much faster.   Considering the principle of compounded interest, the more profit dollars you earn and keep each year along your path, the bigger your nest egg can be when you are finally ready to exit your business. 

 

A final thought

If you find and work with the right construction business coach and or mentor your investment of time and dollars working together can have tremendous ROI.  Just make sure he or she teaches you to fish so you and your business won’t become dependent on their assistance to stay in business. 

Let me know if you want my help.


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Topics: Success Strategies, Business Growth, Retirement Planning, Business Planning, Sage Advice

Contractor Shares Sales Strategy, Justifies Emailing His Proposals

Posted by Shawn McCadden on Tue, Sep 30,2014 @ 06:00 AM

Contractor Shares His Sales Strategy, Justifies Why He Emails His Proposals

Milt Rye

 

Guest Blogger: Milt Rye is the owner of Ethan Home Repair & Remodeling, LLC located in the Greater Seattle, WA area.  Milt is a contributor to multiple construction resources, forums and discussion panels. Milt sent me the letter below to offer his difference of opinion to mine after reading my blog titled: Is A Contractor Really A Salesperson If He or She Hits Send?   

 

 

Shawn,

I thoroughly look forward to your articles, regularly take advantage of your online resources, information, and recommendations, attend your seminars, and fully embrace most everything you “preach”.  So thank you for your help in the ongoing success of my business.

That said, I am afraid I can’t totally agree with your premise that a contractor who emails proposals is just an “order taker”.  I think the approach must be governed by many factors that are geared toward that particular customer’s needs and personality. A true salesperson, in my view, is someone who can relate best to their customer, instill confidence in them, and communicate in the manner and frequency in which their customer is most comfortable.

Sales strategy for contractorsFor large ticket, complex projects face to face presentations are generally preferred simply due to the scope of the project. But if I have done my job correctly up to the point of presentation, I should already have the job. I should have already established whether they can afford the project and if they have selected my company. The bid is just a formality. Price is WAY at the bottom of issues, as is the method of delivery. For most projects, we would have already met multiple times up to the point of presentation and that’s where I do my selling. Whether I email the quote or hand deliver it is immaterial in my experience of selling projects for over 15 years. I personally prefer a face to face meeting, but have found it unnecessary in most instances and base that decision on the customer and their personality. I have never been the cheapest bidder and tell people up front that I never intend to be. Yet my closing rate/ratio remains extremely high.

 

Selling remodeling to busy clientsI find that our current speed of living in general is much faster than in the past and people get irritated with too many required face to face meetings. They most often prefer the email method so they can make a decision at 10pm after work is done, the kids are asleep and they can focus. Am I serving them or are they serving me?  I always ask what their preferred form of communication is and then I respect that.  If I have established myself as the contractor of choice, reflected in our discussions (phone or otherwise) that I have accurately heard them and understand their needs/wants, established a comfortable budget, and minded the details, why waste their time and mine with an unneeded additional meeting?  Let’s do this!

 

I am sure many contractors use email as an excuse to avoid a face to face meeting because of fear of rejection or other issues, and to hide behind the computer. They rarely follow up and basically throw mud on the wall and hope something sticks. Maybe those folks were your intended audience for this article.  

Others of us use email as one of many tools in the sales toolbox to great success and to close more deals, more often, and more profitably, than running all over the area chasing people for face to face meetings.   

Thanks again for your commitment to contractors. I just think your approach on this article was too general and did not do justice to the topic.

Regards,

Milt Rye

 

Note:

Contractor opinionsIf like Milt you disagree with something I post at my blog please feel free to let me know.  Milt did a great job explaining his viewpoint in a respectful and thoughtful way.  I must admit I agree with his approach as well.   When Milt emails his proposal he is doing so to confirm in writing the agreement he has already made with his prospect who has agreed to become a customer.  Milt is certainly not an order taker, but rather a great example for other contractors seeking to improve their sales abilities and results.  

Thanks Milt!

 

 

Topics: Sales, Differentiating your Business, Guest Blogs, Opinions from Contractors

Update On The Lowes 2X4 Story And Controversy

Posted by Shawn McCadden on Tue, Sep 16,2014 @ 06:00 AM

Update On The Lowes 2X4 Story and Controversy

Lowes 2x4 story update

 

Last week on September 9, 2014 I posted a blog titled California Judge May Have Created Huge Challenges for Contractors.  At that time the information reported indicated that a California Superior Court judge by the name of Paul M. Haakenson had ordered Lowes to pay $1.6 million dollars for selling 2x4’s that are not really 2” x 4”.   The story and my blog caught quite a bit of attention in the construction and building materials industries.   Additional information has now surfaced.

 

Some clarifications

I had originally found the information in an article posted to ProSales magazine, a publication for professional building products dealers.  Remodeling magazine recently posted an update about the story, offering some clarifications provided by the West Coast Lumber & Building Material Association (WCLBMA).  In the article WCLBMA clarified the $1.6 million final judgment Lowe's reached with the State of California appears, at least in part, to involve labeling certain non-wood products as wood as well as the incorrect labeling of certain other lumber products.

In an August 27th press release by Marin County, the county where a local weights and measures division visited one of Lowes’ retail store locations, said the district attorneys' civil enforcement action claimed that "Lowe’s stores throughout the state unlawfully advertised structural dimensional building products for sale and those advertisements stated, contained, and described product dimensions that were not the actual product dimensions".  The press release also states; “The judgment requires Lowe's to immediately remove products from sale or correct false, misleading, deceptive or inaccurate product descriptions when Lowe's knows or should know that the product descriptions are untrue or misleading”.

 

Don't blame the source

Lowes 2x4 challengesIt would appear that in the original interview ProSales had with Lowes about the story the fact that Lowes was selling 2x4’s that did not meet the standard accepted size of 1 ½” x 3 ½” was a detail left out of the interview.  I say this with a high level of confidence because I find ProSales to be consistently accurate and the magazine editor, Craig Webb, does a great job vetting the information being published. 

 

Do contractors still have plenty of reason for concern?

On the other hand I and many of the commenters at my blog are still concerned about the ruling details Lowes and other retailers must now follow.   According to another ProSales article Judge Haakenson’s order lists the following three main rules for the retailer to follow going forward:

  • "Common descriptions" must be followed by actual dimensions and labeled as such. For instance, a 2x4 must be followed with a disclaimer that the wood is actually 1.5-inches by 3.5-inches and include a phrase equal or similar to "actual dimensions."
  • "Popular or common product description," like the word 2x4, must be "clearly described as 'popular name,' 'popular description,' or 'commonly called.'"
  • Dimension descriptions are required to use the "inch-pound unit", meaning they must include abbreviations such as "in., ft., or yd.," and can't use symbols like ' or '' to denote measurements.

 

Regulations affecting contractorsThe concern I am expressing is  if these rules apply to retailers will they also apply to contractors? If they do, or eventually will, contractors in California and the rest of the country may also run into challenges not only with the government, but also with their customers.   Perhaps trade associations such as NAHB and NARI should proactively seek out the answer to this question to help guide and protect their members and the rest of the construction industry.   The RRP Rule came about because our industry didn’t proactively deal with the hazards of lead during construction on its own before the government stepped in and dictated regulations many do not agree with.  

 

Perhaps this case against Lowes can serve as a warning and the industry can get out ahead of what the government could require of contractors.  If these are or do become requirements contractors must follow perhaps the trade associations and industry publications can inform contractors before they experience costly challenges that could put them out of business.

 

What are your thoughts? 

Are you concerned enough to ask your trade association to look into this? 

 

Note:

Click here for an update on this story

 

 

 

Topics: LBM Related Topics, LBM Dealer Topics, Legal Related, Government Regulations, Shawn's Predictions

CA Judge May Have Created Huge Challenges For Contractors

Posted by Shawn McCadden on Tue, Sep 09,2014 @ 06:00 AM

California Judge May Have Created Huge Challenges For Contractors

Lowes pays fine for selling 2x4s

 

I couldn’t believe it when I read it.   A California Superior Court judge by the name of Paul M. Haakenson  ordered Lowes to pay $1.6 million dollars for selling 2x4’s that are not really 2” x 4”.  

Yes, your read that right! 

According to the Marin County, CA district attorney's office Lowes "unlawfully advertised structural dimensional building products for sale."  To put it a different way, prosecutors say that if products, including building products like a 2x4 or 2x8, aren’t actually 2” x 4” or 2” x 8” when purchased, consumers are being mislead.

Wall framing crewIt would appear to anyone who knows and understands how lumber is graded and sold that the state of California is looking for ways to fine legitimate businesses, even if those businesses are conducting business using traditional and industry accepted methods and terminology. 

According to a report by Tim Regan of ProSales magazine, Amanda Manna, a spokesperson for Lowe's, told ProSales by phone that this case began when representatives from a local weights and measures division visited one of the company's retail store locations and "expressed concerns" about product measurements.


Apparently even the district attorney got involved

According to the same ProSales article Marin County District Attorney Edward S. Berberian said "Consumers should expect when making product purchases that retailers are providing accurate information.  Especially when misinformation could adversely affect building projects that more often than not rely on precise measurements."

As part of the judgment Lowes was ordered to pay $1.47 million in civil penalties and costs of the investigation, as well as an additional $150,000 to fund further consumer protection-related activities.  Lowes also will now display the actual dimensions next to "commonly used measurements" in product descriptions and on in-store signage in its stores across California.

 

How and why this may affect contractors

Lowes may be able to afford to pay these fines and make changes to make the government go away, but what about the typical small business contractor?  Will the state of California go after contractors in the same way?  Does this judgment create awareness and open the door for more consumer law suits against contractors?  Here are a few questions to think about:

  • Questions for contractorsWill you have to describe the actual dimensions of every framing product you specify in your next proposal, including the actual thickness of sheet goods?
  • Should architects and designers now provide similar information when they create plans, just to be safe?
  • How much can manufactured lumber vary from its actual published size; will 1/16” over or under  be OK, but 1/8” or more is not?
  • What if the lumber is actually larger than the size you specified because it is wet?
  • If you contract to build an 8’ by 12’ deck will you have to explain in your contract why it will be a few inches smaller than that, each way?   If you don’t, in California will your client be able to sue you because the deck wasn’t exactly 8’ X 12’?

 

The Bigger Picture

Some of you might say, well that’s in California; it doesn’t or won’t affect me.  

I say you are wrong. 

If we as an industry let even one government agency get away with such stupidity and allow them to use regulations in ways they were not intended, we are all opening up the door for more special interest groups and government agencies to regulate us out of being able to run profitable businesses. 

 

Think I’m being a fear monger? 

How about this additional detail about the settlement.  According to another report by ProSales California now requires Lowes to use the "inch-pound unit," meaning they must include abbreviations such as "in., ft., or yd.," and can't use symbols like ' or '' to denote measurements. 

Better start editing your stock proposals and or project specifications!

 

Topics: New Business Realities, LBM Related Topics, Government Regulations

Window Treatments Upsell and Differentiate Your Designs and Projects

Posted by Shawn McCadden on Thu, Sep 04,2014 @ 06:00 AM

Window Treatments Decoded: What to Use Where

Window treatments for contractors

 

When it comes to building a house, you've got it down. You've got your favorite brands of windows and insulation, and you know all of the best places to get quality materials. But when it comes to the finishes, making the right choices can be tricky, especially when it comes to so many window treatment options. Here's a breakdown of the various types of window coverings with the advantages of each to help make the selection process easier for your next project.  Consider adding them during the design stage to upsell your project, make your designs stand out and differentiate your offering.

 

Privacy and Plenty of Light

Cellular shades

Cellular shades are a type of hard window treatment that provide complete privacy while also allowing natural light to filter into the room. The shade's honeycomb design is constructed for maximum energy efficiency and provides a layer of insulation to help keep warm air inside. As windows typically account for 25 percent of heat loss in a home, states The Shade Store, this is an easy way to mitigate the problem while also softening up the look of the windows. Cellular shades are ideal in bathrooms, street-facing bedrooms or rooms that are prone to heat loss. While the light-filtering option is most commonly used, cellular shades also are made with heavier materials so they can double as blackout shades.


Timeless Design

Wood blinds are a safe choice of window treatment because they have a classic style that adds a rich, polished look to any room. This is an ideal option to use for a spec home or a house that's being remodeled as it has wide-ranging appeal. Wood blinds are made in a variety of wood finishes, so you can easily find them in the same material or stain that you're using in other finishes in the house. While a bit more expensive than standard horizontal blinds, wood blinds offer a higher insulation value and have a higher-quality appearance.


Form and Function

Roman Shades

 

If you are looking for the decorative impact of drapes with the functional advantages of blinds, roman shades are the ideal choice. Made from heavy, durable fabric, roman shades are an easy way to soften the look of a room. While available in lighter fabrics, most are blackout quality and are perfect for installation in a bedroom, says Houzz, or anywhere that privacy is of utmost importance. While roman shades look great, there are a few downsides. They are all or nothing when it comes to letting light in and they can be difficult to keep clean as dust accumulates.


Unmatched Elegance

Drapery brings a refined look into any room of the house. For the best results, opt to have custom drapery made. One of the main downsides of drapery is that it can be difficult to select a material that will appeal to all homeowners. HGTV suggests silk drapes to instantly wake up a dull room. Additionally, drapes can add a lot of depth as well as the illusion of height to a room. To make the ceilings seem higher and to make the room feel a bit more spacious, install the curtain rod close to the ceiling rather than just above the window.

 

Sleek Sun Protection

Solar Shades

Solar shades are the ideal window treatment option for rooms that have a lot of sun exposure. They offer UV protection while also reducing glare. This is a great option in rooms with a beautiful view, as the shades won't disrupt. One caveat is that solar shades do not provide privacy; therefore, solar shades are best in main living quarters of the house like the living room, great room, kitchen or dining room. Furthermore, this type of window treatment is a must if your clients have expensive art, antique furniture or other valuables that can be harmed from too much sun exposure.

 

Allison Wilkinson

 

Guest Blogger:  Allison Wilkinson is a WAHM, an explorer, an amateur chef and a fitness buff. You can find her Instagramming photos of her (adorable) son or researching everything from the latest parenting theories to healthy hacks for desserts.


Topics: Differentiating your Business, Design Trends, Guest Blogs, Design Options

Is A Contractor Really A Salesperson If He Or She Hits Send?

Posted by Shawn McCadden on Thu, Aug 28,2014 @ 06:00 AM

Is A Contractor Really A Salesperson If He Or She Hits Send?

Helping contractors sell

 

If as a contractor you take the time to go out and meeting with a prospect, then you simply email or snail mail your proposal to the prospect, I don’t think you are really a sales person.  If you do this I think you are an order taker.   Now there may be a few exceptions to this.  But, before you rationalize why your situation is an exception, ask yourself this question first.  Is your justification for emailing your proposals really a “reason” or, is it an “excuse”?

 

I will offer one exception.  

If you are a contractor who gets his or her work by being the lowest price; then emailing is OK.  Essentially you are a commodity.  You are no different than any of the other contractors the prospects has met with.  People who buy on price only need to know about your price, not about your value.

Is being too busy to properly sell an excuse or the reason you are not earning enough money?

 

Are you selling your price or your value?

Let me be blunt and right to my point.  If you email your proposal (price) to a prospect you are probably confirming with your prospect that you and your business are simply a commodity.   By not presenting your proposal you have lost the opportunity to accomplish these very important sales goals:

  • Sales advice for contractorsAnother opportunity to differentiate yourself, your business and your solution and become a trusted advisor.
  • The ability to address objections, questions and concerns.
  • The ability to make changes or clarifications so your prospect can buy with confidence.
  • The ability to ask for their business.
  • I am sure you could add a few more here yourself if you really think about it.

 

Let me offer a simple analogy

Why contractors can't sell

 

Let’s pretend you are a carpenter who needs a job so you can pay your bills and feed your family.  Let’s also pretend I just happen to have a job opening right now for a good carpenter.  You call me up to ask about the job.  I tell you I’ll be in my office this afternoon and offer you can either email me your resume or come on down with it and we can chat.  What would you do?  If it was me, and I needed to feed my family, I’d ask what time I could come by.

 

Summary

Selling remodelingIf you are having challenges selling jobs and or getting the price you need to earn a good living and save for retirement, and you have been hitting send, I suggest you start presenting your proposal and price. In fact I suggest, before you commit to do the estimate and prepare a proposal, you schedule a specific date and time with your prospect to come back and present it.  That way you will save yourself a lot of time doing estimates and proposal for people who only see you as a commodity.

 

Topics: Sales, Differentiating your Business

Creative Driveway Designs Bring Attention To The Rest Of The Project

Posted by Shawn McCadden on Tue, Aug 26,2014 @ 06:00 AM

Creative Driveway Designs Can Bring Attention To The Rest Of The Project

Driveway designs

 

 

The driveway is among the first things visitors and passersby see when they look at a house. Like the front door, the driveway creates a lasting impression and perception of the home and because of this; it's the perfect time to try something a little unconventional. Even more than the front door, the driveway has to be functional as well as visually appealing, as it’s a service area of the property. Plus, a really cool driveway design can bring the contractor more business from the customers' neighbors asking, "Who did your driveway?"

 

Not Their Father’s Driveway

Your clients may have memories of their dad brushing smelly black sealant on their childhood home’s driveway or patching cement cracks with a trowel and wet cement. But those are not the only options for driveway surfaces. A driveway’s appearance is limited only by your customer’s budget and (hopefully not) your creativity. Gravel, pavers, natural crushed shell, brick, basalt, permeable (or pervious) concrete and recycled materials are just some of the possible materials you can use to design a unique driveway.

 

Factors in Driveway Design

Contractors and consumers should take a few things into consideration when designing a driveway. Budget is an important factor during construction and installation, but don't forget driveway maintenance over time. The materials used to construct the driveway, as well as its style, should complement the house, not clash with it, as well as be durable with a layout that is logical and easy to navigate by foot and vehicle.

A driveway created with pavers can be one of the best values, providing beautiful design possibilities, with low maintenance and a long shelf life, commonly lasting 30 to 40 years. Crushed shell driveways offer soft colors and good drainage, while pervious concrete made with almost no sand deliver a light, porous surface to avoid run-off issues.

 

Mix N Match and Layouts

Creative driveway ideasTo help your work stand out from other contractors don’t settle for the same old same old when it comes to designing driveways for your clients. You can mix and match materials like asphalt and brick border, or broken concrete and gravel. Instead of a straight path from the street to the garage, consider a rolling driveway layout to add some sensuous curved lines to the property.

Hiring a qualified sub contractor to perform the work  is often the best route.  But if you would like to do all or even some of the work in-house you can rent the equipment you need to do it right. Compactors, electric hammers, and other equipment are readily available as long as you know what you will need.

 

Creative Borders

Driveway can help sell a house

 

Creative borders go a long way toward creating an attractive driveway. Liven up a traditional straight driveway by planting a low hedge on each side, plus a decorative flowering tree for more vertical interest, such as a dwarf flowering crabapple tree. Add interest with grass between pavers or broken cement. Use a homeowner’s favorite design element or theme to line or highlight the driveway with split logs and tree trunks or a mass planting their favorite flowers.

Beautiful, unique driveway designs add a visual highlight as the first part of a property to be seen and used before arriving at the front door. It’s worth the extra effort to think more about materials and plan a unique part of the property that everyone passing by will see and your customer’s will enjoy for years to come.

 

 

Heidi CardenasGuest Blogger: Heidi Cardenas is a freelance writer with a background in human resources, business administration, technical writing and corporate communications. She specializes in human resources, business and personal finance, small business advice and home improvement.

 

 

Topics: Differentiating your Business, Design Trends, Design Options

Three Ways To Handle “Your Price Is Much Higher Than The Other Guy”

Posted by Shawn McCadden on Thu, Aug 14,2014 @ 06:00 AM

Three Ways To Handle “Your Price Is Much Higher Than The Other Guy”

Why is your price so high

 

 

Any contractor who has worn the salesperson hat has experienced the “Your price is much higher than the other Guy” objection.    Some contractors freeze up when they hear this, perhaps falsely assuming all prospects are only seeking the lowest price.   On the other hand there are contractors who look at objections as opportunities.  These contractors, rather than see the objection as ending the sales call, see it as an opening to take advantage of.   A no may mean no, but an objection means “I am still thinking about it and haven’t made a decision yet”.


Next time a prospect tells you your price is higher than someone else’s try these tactics to keep the conversation moving and see if your prospect could justify paying more.  Notice I said “tactics”, not responses.  If you memorize the responses you may miss out on understanding why the tactics work.   The response is not a tactic, just a way to accomplish the tactic.   Make sure your responses sound like they are coming from you and fit the context of the conversation you are having with your prospects.  

 

How remodelers can address the price is too high objection

 

Tactics contractors can use to address the higher price question

Tactic #1- Find out if you are you being compared to a business the prospect would never hire?

Many home owners collect bids from contractors even though having met with them they would never hire them.  Then they still use that contractor’s bid as a point of reference.  This is like comparing the cost of a Ford to a Dodge pickup truck even though you would never buy a Ford.  To find out if your prospect is making a false comparison try asking something like: “Is there a reason you haven’t already hired that other guy?”  Depending on their response you might want to move to tactic #2 below

 

Tactic #2- Find out if they are still looking for something they haven’t yet found

How consumer choose a contractorFor many home owners choosing the right contractor to work with is just as important as the quality of the workmanship.   Consumers who have already done remodeling and had a bad experience with a contractor are great candidates for this tactic.  The purpose of the tactic is to get them talking about what happened last time, how it affected them, and how they will feel if the same thing happens again.   With this prospect first ask something like: “Is there a reason you aren’t working with the contractor who did your…?”  If this reveals you are on the right track says something like “Why haven’t you already hired one of the other contractors you have met with so far.”   Then, depending on their answer and the context, consider saying something like: “Were you hoping I could do something different than the other guys?”  Now, at least with this prospect, you’re back in sales mode!  Move to tactic #3.

 

Tactic #3- Help them discover that getting something different comes with a different price.

No one wants to pay more than they have to for anything.  Take gas for example.  It’s a commodity; you can get the same thing all over the place so why pay more for it if you don’t have to?  If you have been successful with tactic #2 above, to get tactic #3 started ask something like: “But you probably couldn’t justify paying more to avoid those disappointments, right?” 

If they say no, or they say yes, ask them the same thing: “What do you think we should do at this point?”  By asking this question you will either give them opportunity to pay more and close the sale, or you give them the opportunity to say it isn’t going to work so you don’t have to be the one to say it.   Using this tactic can help you avoid the risk of being accused of not wanting to work for them.

 

Think about this next time you are worried about your price and your prospect’s reaction. 

How to get good referals from remodeling customers

 

People who buy on price hang around with a lot of other people just like them.  When you get referrals from customers who buy on price it’s likely their referrals will want to buy on price as well.   When you get referrals from people who are willing to pay more to get something different, it’s likely their referrals will pay more to get different as well.  You just have to help them discover the difference they are looking for.  

That’s why you need to learn tactics; not memorize responses!


 

Topics: Sales, Differentiating your Business, Prequalifying, Creating Referrals

One Simple But Powerful Tip For Hiring The Right Employees

Posted by Shawn McCadden on Mon, Aug 11,2014 @ 06:01 AM

One Simple But Powerful Tip For Hiring The Right Employees

Hiring the right employees for a construction company

 

 

Many contractors complain about employees not doing their jobs as expected, don’t fit in with other team members and or are not performing their individual work tasks as expected.   These are common problems to be recognized and unless addressed can cost the business a lot of money and can compromise customer satisfaction.  However I find that in many cases the employee is not the one at fault, but rather the construction or remodeling company that did the hiring hired the wrong person. 

 

So why does this happen and what can construction business owners do about?

A big mistake I see many contractors make is creating the job description for a new hire after he or she has already been hired.  Think about that for a second.   Whether written down or worked out inside your head, figuring out the job description for a new hire after the fact may just be a way to rationalize your hiring decision.   Done after the fact the job description is only a documentation of who you hired and what you got; not necessarily who you should have hired and what that person should be able to contribute and deliver as an employee.


Instead, here is a radical idea

Using job descriptions to help with hiringWhy not write job descriptions before you seek to hire! 

By creating a written job description you can make sure any new hires will have the skills, personality and previous experience to fill the job’s position within your organization.  

When putting the job description together I suggest you consider and include not only the desired trade skills, but also the expected outcomes if the employee performs properly.  To make sure the person will fit in well with the position, as well as the rest of your team, also include a profile of the candidate's desired attitudes, behaviors and disposition.  If you think this through and express it in writing before you hire, you can use what you put together as your guide and as a checklist when interviewing and considering candidates.

 

Here are a few example considerations by job position

  • Carpenter: Do you need someone who can preplan the project including making materials lists and setting up sub contractors in advance of starting projects or are you OK with a good carpenter who can figure things out well enough as he goes, but can’t preplan? (Click here for a Lead Carpnter Job Description)
  • Bookkeeper: Do you want someone who can set up and use QuickBooks to track financial information and create business reports from the information, or are you OK with a data entry level person who just follows someone else’s instructions within a QuickBooks file that was created by your business coach or accountant?

 

You can either hire for what you need or settle for what you get

Investing in the right employees for a construction companyI hope you can see by my examples offered above that if you don’t define what you want in advance you may not get what you really need.  If fact, hiring the wrong person can cost you a lot of money due to wasted time and lost opportunities while you seek out and onboard a replacement candidate.  

Hiring the right employees should be looked at as an investment.  With the right employees the business can grow faster and generate a lot more profit.  Hiring the right employees can also help put you on a path towards a comfortable retirement so you won’t have to work until you die.


How about you? 

Are you a business owner who figures things out as they happen, or will you plan ahead and set up what you want to have happen when it comes to growing your business and hiring the right employees?

 

Topics: Hiring and Firing, Success Strategies, Recruting, Culture