The Importance of How You Do Business as a Remodeler.

How you do business as a remodeler serves certain customers. And, just as there are many different customer types there are also many ways to do business as a remodeler. For example does your business charge for design or does it do it for free? Does your business help consumers pick out their products and colors or does it expect customers will research and find their own products? Do you offer fixed pricing, cost plus, T&M or all three? So, have you decide how you will do business and then stick to it as you prequalify prospects, or have you decided to do business whatever way those who buy from you want?
If you are fortunate enough to get referrals from past clients, do you want to do business with their referrals in the same way you had to do business with them? If you do business differently each time, will you even remember how you served the referring customer so you can repeat it? Is that what the referral is expecting or do they have their own plans for how they want you to do business with them?
The importance to your brand
Deciding how you will do business is one way to define the brand of your business and therefore the type of clients and project types it will attract. For example if you offer professional design, and charge for it, people who value design will likely do business with you and be willing to pay for it. On the other hand if you do design for free some consumers will like free and may be attracted to your business. However my experience as a design/builder was that people who want free design also expect other things for free. Which customer would you prefer to attract?
Become a specialist rather than a generalist
If someone asked you how you do business what would you say? Have you already decided and defined it? Or, would you be at a loss to explain it in a logic order? If you do business differently, depending on who you take on as customers, what will you decide to say next time someone asks you? Will your answer attract or detract the prospect you are in front of? Are you hoping they just won’t ask?
Managing one way of doing business is hard enough. Do you really want to manage an unlimited number of business methods?
Rather than think you need to serve everyone why not decide who your ideal client will be and how you will do business, to both attract them to your business and serve them like they have never been served before by any other remodeler.
Remember, if you are just like all the other remodelers you will become a commodity and will be forced to compete on price. If you stand out as different, and customers want different, they will have little choice but to pay the price to get different.
Who’s running your business anyway?
Related articles:
Contractors and Remodelers: Decide Your Niche and Then Go Get It!
Three Ways To Get Fewer Leads But Close More Remodeling Sales
If One Of These People Asks, Can You Explain How Your Remodeling Company Does Business?
How A Contractor’s Web Site Marketing Can Speed Up The Sales Cycle



Making an Introduction
If you've ever played the game "The Sims," you know that maintaining relationships can sometimes be harder than starting them. And like dating, you often have to take the initiative to keep the relationship strong. Treating clients or close professionals to 
Remember back in 2006 before the great recession how much work there was for remodelers? Remember how busy you were and how easy it was to sell your services? And, back then, there was a good supply of experience workers and subcontractors. Then the recession came and things changed forever. Well, the remodeling economy has become healthy again and is predicted to get even better for the next year. According to one
When demand for services picks up so does the market price for those services. If you have been selling on price and as a result haven’t been making enough money to live the lifestyle you desire, both today and when you eventually retire, now is the time to start charging more. And, in addition to raising your prices, be careful how much work you say yes to. The point here is to make sure you don’t pre-sell a whole bunch of work at your current margins. If you do you will prevent your business from being available to sell and complete work when demand and therefore job prices rise due to supply and demand. Although having a good backlog of work can be comforting, coming to realize you could be making a lot more money may lead to strong regrets. Also, keep in mind that material and subcontractor costs will also climb due to supply and demand. Make sure you estimate direct job costs based on when you will actually do the work, not what it would cost if you were doing it today.
The surge in spending will lead to a surge in job leads. This will afford remodelers the opportunity to be much more selective about who they will allow to become customers as well as what job types they will accept from those customers. Remember, the customers you serve will be sending you referrals. Those customers hang around with other people just like them. If you work for customers who beat you up on price and micromanage how you do business, their referrals will likely want to do the same. To avoid working for the wrong customers first
Selling the work and selling it at high margins is one challenge. But in my option that’s a much easier challenge these days than trying to find and keep enough quality production staff and trade subcontractors to keep up with the work, and complete it with quality. Don’t wait until you already need the help to start looking for them. Instead, recruit good workers now and test them out to be sure they are right for your business and your business is right for them. During the winter months many employees are let go or laid off by contractors who lack good sales and marketing skills. This makes the winter a good time to look for prospective employees because there are more to choose from and because their options of available jobs are limited. Use the next few months to vet out the good ones and send the underperformers back out looking for jobs. Using this strategy it’s likely you will be able to produce the work you sell much easier while your competition has to do the best they can with the workers you passed up and or let go.
Yes, becoming a real Design/Builder will be an evolution of change, if you are willing and able to commit to making the changes. The changes will not be easy and will require getting out of your current comfort zone to gain new experiences and results.
Trust is earned. If you do Design/Build well with some clients they will come to trust you and will then let those they refer you to know you and your process can be trusted.
You will need to know this info to create a unique solution and to have confidence in what you suggest to them when discussing options. You will also need to know this information to avoid becoming a commodity contractor by just giving them a price on what they thought they needed. You know, just like pretty much every commodity contractor does every day.
You need to get their commitment to discuss how they will decide about important project details as well as which contractor they will ultimately partner with. If you don’t know how they plan to make these decisions how can you possibly help them make decisions and why should you be surprised when they don’t or can’t decide?
Having the right employees at your business can make a huge difference to your business in so many ways.
As she checked me in she made me aware that my flight was likely to be delayed and therefore making my tight connecting flight might be at risk. I had never had anyone else at any airline do this at check in. She also told me why it might be late before I had chance to ask her why. By doing so my attitude about my situation was already less stressful. She then helped me make a "Plan B" in case I missed that flight. By doing so I went to the gate in a much better frame of mind than the frame of mind I would have been in if I discovered my possible dilemma at the gate.
The better news, for me and her employer, is that she restored my faith in her company as a preferred option. The next time I have a choice when deciding between available airline options to serve my traveling needs my experience that day with her will definitely become part of my buying decision.
Dealing with customers, subs and employees isn't always easy. All too often they can say and do things to us that can really strike a nerve. How you react in the situation can really make a statement about your professionalism as well as what they might actually share with others about your reactions.
Now consider this example. If you asked a prospective lead carpenter you are considering hiring how he or she deals with stress or frustration on the job and they share that beating the snot out of a wood scrap with their 28 oz Estwing works best, would you hire him or her? I certainly wouldn't.
Don’t you just hate it when a prospect you expected to do business with gives your detailed plans and or specifications to another contractor? That’s bad enough, but isn’t even worse when they give the job to the other contractor and that guy would never have been able to offer the work or price the job without your specs?
“Will you need help discussing and specifying the details and products to be used in your project in order to make good decisions about your project and how much money to invest in it?”
Here is some sample language you can consider using inside the remodeling proposals you create for prospects. This information is for your reference only. Be sure you have it reviewed by your own legal council before using it.
I constantly read forum posts about contractors’ being shocked to discover they are being re-directed away from their own company when searching for their own company online, and then are directed to a lead generation service. The issue is rampant – but unfortunately, the situation is typically inadvertently created by the contractors’ themselves.
We read the Terms & Conditions of numerous Lead Generation companies. It is important to note that every lead generation company views anything you submit to their site for content as their own. That includes your business biography, services, testimonials and pictures. The terms sometimes have a permutation of wording that states "the contractor agrees that a consumer MAY NOT be directed back to the contractor if the contractor does not have the appropriate spending limit and other limitations".
The contractor is asked to sign up, pass along his/her identity to the lead generation company, and the lead generation company can use the information anyway it wants if you do not pay them forever.
So in summary, there are only two ways to win at getting more online lead opportunities:
Well before attempting to break past $Million in installed sales remodelers and home improvement contractors should already have an established and tested sales system in place. The system should be well defined. Those involved with selling, as well as supporting the sales department at your business, must be trained and held accountable to using it correctly and consistently.
Decide what Sales System you will use
I want to stress that consistency of and with your company's sales approach will be really important as the business grows. Without consistency it will be difficult for the owner to become a sales manager, or transfer sales management to someone else, because each sales person may approach selling in a different way. And, without consistency of sales approach, repeat customers and their referrals may not experience what they expected when a new salesperson visits them. Plus, by having a consistent sales approach that successfully helps prospects buy the right solution, you can market the advantages of that sales system with confidence prospects will experience what they expect if they respond you your marketing.






