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The Difference the Right Employees Can Make For Your Construction Business

Posted by Shawn McCadden on Thu, Jan 14,2016 @ 05:30 AM

The Difference the Right Employees Can Make For Your Construction Business

 
choosing good construction employeesHaving the right employees at your business can make a huge difference to your business in so many ways.
It should not be left to chance. In addition to your construction company's profitability the right employees can also make a huge difference for your customers and the way they view and or will share their experiences with others. In this article I share my experience with one United Airlines employee who helped make my experience and day way better than I had come to assume it would be.  I bet by sharing it you can use my experience as a guide to better seek, choose and train your employees.
 
Over the holidays this Christmas season I went on an annual goose hunting trip in Illinois with some contractor buddies.  My first return flight was delayed and I was at risk of making my connection to get back home. I was obviously bummed out.  But, thanks to just one exceptional airline employee, I made the connection and got back in time to celebrate the New Year with my family.  Here's what that employee did and why you should seek, choose and train your employees to be just like her.
 

First off she had a great attitude and presented herself well

The woman who checked me in was well dressed and well groomed.  Sure she had to wear a uniform (and so should your employees), but in addition to wearing professional attire she obviously also had a lot of self-respect and presented herself well.  Unlike others I observed working around her she was professionally groomed, interacted with a genuine smile and spoke with a professional vernacular. I suspect someone raised her to be that way and I could tell it was natural for her, not an act.  In my opinion hiring her was a great investment.

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Next, she managed my expectations and offered proactive assistance

how to choose the right construction employeesAs 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.  
I soon found out the flight was expected to be delayed by at least 30 minutes, I was now assuming "Plan B"
 

Then she was at the gate and was working hard to mitigate potential challenges

Yes, the same woman who checked me in soon came to work the gate, and was all by herself.   I suggest, like a small business, the gate at that small airport could not support additional overhead.  She was obviously cross trained by her employer to perform a wide variety of tasks and to do so very efficiently.  For that I not only credit her employer for properly training her, but for also hiring an employee with the right cognitive abilities and a desire to learn.  For that I can probably also credit her as well as whoever raised her and or mentored her in her formative years.  With her actions, knowledge and a professional demeanor she got the incoming passengers squared away, prepped things for my outbound flight, and very efficiently got us all boarded faster that I have ever experienced before.  And I travel a lot!  She minimized the potential delay big time like it was second nature.

Related Article:

 

The good news was that I made my connection to get home. 

how to hire the right employeesThe 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.

I hope sharing my experience that day will help you make better hiring plans and decisions.  For additional help and insight check out his article titled "One Simple but Powerful Tip for Hiring the Right Employees”

 

Topics: Hiring and Firing, Worker Training, Recruting, Team Building, Differentiating your Business, Culture, Customer Relations, Creating Referrals

Three Ways To Get Fewer Leads But Close More Remodeling Sales

Posted by Shawn McCadden on Tue, Jan 05,2016 @ 06:00 AM

Three Ways To Get Fewer Leads But Close More Remodeling Sales

Increase_sales-wrIf you have been getting business by providing free estimates for everyone who calls your business you are most likely wasting a lot of money making time. Are you really an expert in your industry if you have been letting those who buy from you tell you how to run your business?  If these things have been happening to you it’s time to recognize the value of your time and expertise.  It’s also time to limit offering them to only those who find value in what you offer, how you do so, and are willing to pay you well for your expertise. Here are three ways successful contractors reduce their lead flow, improve the quality of the leads they get, and sell more jobs at higher prices. Yes, it is true, read on!

 

#1: Describe your process on your web site and find ways to entice visitors to check it out.

Do you have a define process for how you do business?  If not, create it. If you do have a define process document it with words and pictures and put it on your web site.   By explaining how you do business on your web site you can save a lot of time and make more money because:

You won't have to explain it to everyone you meet, over and over again. If they have not yet checked out how you do business when they call your office send them a link to the "How we do business" page at your web site. Additionally mutually agree to when you will then call them back to see if they still want to meet with you.

contractor web site marketingBecause the information is presented in writing at your web site prospects won't be able to interrupt you as the typically do when you try to explain your process to them at live sales calls. If written well they will either recognize that your process works as a solution for them, or they will know why it’s not right for them. This can help you eliminate defending your process as you try to explain it to them live and in person.  If they don't like your process after checking out your web site they won't waste your time.

Related article: If One Of These People Asks, Can You Explain How Your Remodeling Company Does Business?

 

#2: Charge for creating specifications and a fixed price proposal

Another thing to explain at your web site is why estimates are free but a fixed cost proposal from you requires paying a fee.  Think about it.  An estimate is just a guess. Any experienced contractor should be able to provide a best guess estimated cost range for project types he or she has past experiences with.  In a logical way explain why you charge to go past a free estimate.  If they still call you selling your services to create the proposal will be much faster and easier.  If you want some guidance on what to write read on below. If you don't have a web site read on anyway to find out how you can still do this live and in person.

If they want a fixed price why not help them recognize what it will take to get to a fixed price. Help them discover, say and agree that plans and or specification will be needed before you or any other contractor can determine a fixed price for them. Help them identify whether they will need plans to visualize the project before being able to confidently commit.  Help them decide if they need help finding and differentiate between product options and their price points. Help them recognize the effort and hours you and your trade partners will need to dedicate to preparing a proposal for them.  If they recognize the need for these things you can then ask them if they would like to discuss your design and specification process; as well as how you charge for it.

Related article: Tips For Contractors On Ball Park Pricing and Charging For Estimates

 

#3: Require a return visit to present your proposal and get their decision

Remodeling sales tips to close more salesEven if you are not ready to charge for them, before committing to preparing plans, specs and a proposal make an agreement with your prospect. Let them know that to prepare a proposal for them you require coming back to sit down with both of them to review, discuss and get a yes or no decision on your proposal and about working with your company.   Remember, you will have more time to do this because by being more selective you will be creating fewer estimates and proposals. Those who won't meet with you probably aren't interested enough in working with you anyway.  Perhaps they were just hoping for more free ideas from you before hiring the cheapest contractor or performing the work themselves. If they won't commit to meeting with you to review your proposal that's one less you have to do; freeing you up to concentrate on those prospects who respect you as a professional and value your process.

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

 

I know there will still be lots of non-believers after reading this article.

By committing to fewer estimates and proposals you will gain the time you need to put together and present proposals that differentiate your business from other contractors. By being different you will attract clients who want different.  Consumers who want different know they have to pay more to get it. Those who don't want different buy from the commodity contractors who sell on price

It was definitely my experience as a contractor that the three pre-qualification tactics I suggest here help reduce leads, increase lead quality, and at the same time increase sales.  Please help me out. If you have had success using similar strategies please share your successes here. I am hoping that third party endorsements from those of you who have experienced similar success will help me win over a few more believers!Subscribe to the Design/Builders Blog

Topics: Sales, Estimating, Differentiating your Business, Marketing, Prequalifying, Plans and Specifications

Resources for Aging Remodelers and Remodelers Serving Seniors

Posted by Shawn McCadden on Tue, Sep 15,2015 @ 06:00 AM

Resources for Aging Remodelers and Remodelers Serving Seniors

aging in place information for remodelersWe are all getting older every day.   That reality hit my wife and me a few years back, motivating us to seek a new home where we could happily and comfortably grow old together. We wanted a home configured to serve us as our health declines. Just as important we wanted one we could also afford to live in and maintain on our retirement income, without the need and cost to move to an assisted living facility. It’s called aging in place and it’s a huge opportunity for home builders and remodelers seeking to differentiate themselves. In this blog I share a list of links to resources and information for construction business owners and consumers preparing to grow old.  I also share the list to help contractors and their businesses take advantage of the opportunity and become part of the solution.  Here’s why:

 

  • 90% of seniors want to stay in their own home as they age
  • 60% have made improvements to increase their ability to live independently
  • 49% of seniors want to modify their current homes
  • 38% of seniors want a new, aging in place ready home
  • 27% is the increase businesses see by offering aging in place services

 

I didn’t assemble the links myself.

The links were emailed to me by Patricia Sarmiento who works for Public Health Corps. Their goal as an organization is to provide a hub of reputable and useful public information on health related topics that will empower others to make a difference in their community. According to the web site their mission is simple: Putting the public back into public health.

Public Health Corps Logo

Below is part of her list of helpful and educational resources

Patricia and I invite you to share it with others as you see fit. Share this information in your marketing, on Facebook or Twitter, and at your web site or blog. Use this information to increase your knowledge to better serve seniors. And, if you’re getting close to retirement age, use the information to help prepare your home and yourself for aging in place. Even contractors get old! Don’t you deserve a healthy and comfortable retirement just as much as your clients do?

 

senior aging in place at home

Aging in Place
http://ageinplace.com/

Senior-Friendly Home Remodeling
http://www.homeadvisor.com/article.show.Senior-Friendly-Remodeling.8317.html


22 Senior Health Risk Calculators for Healthy Aging
http://www.calculators.org/health/aging.php 

Cats and Seniors
http://www.americanhumane.org/animals/adoption-pet-care/cat-behavior/cats-and-seniors.html 

Canine Caregivers for Alzheimer’s and Dementia Patients
https://www.rover.com/canine-caregivers-dementia-alzheimers/

 
Pets for the Elderly Foundation
http://www.petsfortheelderly.org/

 
Older Adults & Anxiety
http://www.adaa.org/living-with-anxiety/older-adults

 
Heart Attack Quiz
https://www.acls.net/heart-attack.htm

 
National Council for Aging Care
http://www.aginginplace.org/guide-to-recognizing-elder-abuse/

 

 

Topics: Business Growth, Differentiating your Business, Retirement Planning, Design Trends, Statistics, Aging In Place

How Contractors Can Build & Protect Their Brand Reputation

Posted by Shawn McCadden on Wed, Sep 09,2015 @ 12:59 PM

How Contractors Can Build & Protect Their Brand Reputation

Brand building advice for contractorsFor contractors, brand reputation can make the difference between winning and losing a big contract. A case in point is DuPont. Over the past two decades, DuPont has built a reputation as a safety leader in the chemical industry, enabling its Sustainable Solutions unit to generate $3.9 billion a year training other companies in workplace and environmental safety. Now, that income is at risk after a series of fatalities, lawsuits, investigations, and fines have led the Occupational Safety and Health Administration to place DuPont on its list of severe workplace safety standards violators. Subsequent negative publicity has DuPont's clients questioning the company's safety reputation and whether or not they want to continue using them as a contractor.

DuPont is big enough to take a hit and recover, but for a smaller contractor, even a few negative online reviews can quickly add up to significant lost business and revenue. Whether you're a large or small contractor, it's in your best interest to keep an eye on building and protecting your online reputation.

 

Building Your Good Name

International consultancy and construction company Mace has won Building Awards Major Contractor of the Year recognition by committing itself to putting its clients first and providing superior quality and high delivery standards. As this illustrates, customer service is the foundation of a good reputation.

Construction management consultant Paul Netscher identifies ten variables that affect your company's reputation, all of which boil down to delivering superior customer service. At the top of the list is delivering projects on time. Delivering on promises instead of overpromising and underdelivering, rectifying mistakes, honesty, and quality are also high priorities.

Overall, satisfying and exceeding your client's expectations is the foundation of building a good reputation with your customers. Making a corporate commitment to achieving this ideal is a first step towards building a solid reputation.

 

Promoting Your Brand Reputation

How contractors can build their brandDelivering superior customer service lays a foundation for a good reputation, but in today's digital environment, it's also important to get customers to talk about you online. What customers say about you on sites such as Google Places and Yelp has a huge impact on your online reputation.

Your customers will definitely talk about you if they're not satisfied. Contractor Nation writer Richard Fencil says the biggest reasons people complain about contractors online include shoddy work, rudeness from company representatives, high or misquoted prices, not following through on promises to get back to customers, and keeping customers on hold too long. To avoid these issues, train your staff how to communicate with your customers

You should also take proactive steps to ask satisfied customers to post reviews of you online. For instance, after a project is completed, a sales representative can contact the customer to see how it went and ask for a review. Marketing representatives, office personnel, and project managers can also take opportunities to ask for reviews.

Providing online tools on your website to make it easy for customers to review you will increase your odds of getting good reviews. Amazon is a great example of how automation can facilitate customer reviews.

 

Managing Your Brand

Building your brand's reputation is one thing, preserving it is another. Within your organization, you have to make sure everyone's on the same page about your brand's core message and understands what image is to be projected to customers. Outside the organization, you need to make sure that your brand image is being communicated consistently in all your contact with your customers, both online and off. You also need to monitor what customers are saying about you online in order to ensure that your message is being received, that complaints are being addressed, and that any negative publicity is being met with a positive response.

Managing all this manually can be challenging, especially considering all of the contact you make with your customers and with all the websites and social media platforms that are out there. To make this easier, WebDAM offers brand management software which gives you a single interface to make sure your brand's image is being maintained consistently throughout your organization and across all marketing channels.

 

Handling Complaints

How contractors can handle online complaintsOne of the biggest keys to protecting your brand's reputation is how you handle complaints. The most important step is to listen. Empathize with the customer's situation. Make sure you understand what the problem is before you attempt to resolve it, and make sure they agree with any resolution you propose before proceeding. If you can't resolve the issue yourself, find out where to best direct their complaint. The International Association of Professional Contractors provides more detailed guidelines for responding to customer complaints and negative online comments.

 

 

Topics: Differentiating your Business, Marketing, Marketing Ideas, Guest Blogs, Marketing Considerations, Customer Relations

If One Of These People Asks, Can You Explain How Your Remodeling Company Does Business?

Posted by Shawn McCadden on Mon, Aug 10,2015 @ 01:01 PM

If One Of These People Asks, Can You Explain How Your Remodeling Company Does Business?

How a contractor does businessMost contractors can't explain how they do business, they just make things happen.   In a smaller remodeling business, say up to about $5-700K of installed work, this may get you by.  But as you grow your business, particularly if you want to grow past $1M in installed remodeling sales, the list of people below will want and or need to know how you do business.  

Would you be able to explain it to them?  Or will you let them tell you how it will happen?

To grow a successful construction business these people in your path will need to know how you do business: 

Prospects:  
If in the past they have had a bad or good experience with another contractor, savvy remodeling customers already know what worked or didn't work for them and their project. Before they hire you they will want to know how your business operates.
Customers:  
If they have already bought from you without knowing how you do business they may have bought on price and have already assumed how you will do business. It’s probably not the same way you are assuming.
Employees:
If employees don't know how you do business they will be challenged to take on responsibility as the business grows because they will never be able to assume what you want them to do or say at job sites and or with customers.  If they take the risk of doing so, and then you chastise them for what they did, they will probably never take that risk again and or may look for a different job.
Recruits:
Finding good employees these days is challenging.  Finding a real lead carpenter or production manager is near impossible.   Try this example.  You find a real lead carpenter, and while interviewing that candidate starts asking you questions about how your business and your lead carpenter system work. Will they gain confidence in working for you or will they come to realize they should look elsewhere?   Good lead carpenters know what they need from the business and how it should happen so they can actually produce projects on their own, from the job site.  (Check out this Lead Carpenter System Workshop for business owners)
Architects:  
Explaining how you do business to an architectBe careful here.  If you don't explain how you do business before winning the bid on an architect driven remodeling project you might just be told how you will do business.  Examples include how and when you will be paid, what will be considered a change order vs. what you should have assumed to be included, what margin you can earn on change orders, and what hoops you will need to jump through before receiving progress payments and final payments.  Be sure to carefully read any AIA Contracts before signing them.
Sub Contractors:
Good trade subs are hard to find. If you find a good one but don't clarify how you do business with your subs before you hire they will likely be telling you what they expect after you are already committed to them.  At that point you may have no other choice than to suck it up if you want to keep your job on schedule and your customer happy.   A lack of clarity and consistency regarding your payment policies is probably the most common reason subs will lose interest in working with you on your next project.
Vendors:
Again, be careful here. Be sure to explain how your sales process works and how you price materials before sending prospects and clients to vendors to pick things out.  By doing so they can become part of your sales team.  If you don't, in a sincere effort to help you, they may actually create problems for you.  Examples might include quoting wholesale prices, giving pricing breakdowns, or suggesting products you prefer not to use.  If the prospect never even shares you sent them there, and you didn't let the vendor know they were coming, the vendor may even recommending a different contractor just so they can be sure to get the sale.
 

 

Topics: Working with Vendors, Business Management, Recruting, Employee Advancement, Business Growth, Differentiating your Business, Marketing, Marketing Considerations, Prequalifying, Breaking $1Million

What Happened When I Stopped Providing Free Estimates

Posted by Shawn McCadden on Sun, Jun 28,2015 @ 07:00 AM

Guest Blog: What Happened When I Stopped Providing Free Estimates

Mouse_trap_free_bait-wrIf you are still running free estimates and playing a numbers game of leads to appointments to sales then I have something valuable to share. In the past I believed that if I did not actively pursue new clients, and provide free estimates, I would have no income. It was a numbers game; 5 leads - 3 appointments  -1 sale. Sound familiar? In this article I share my lesson in letting go; finding the faith to trust a system to qualify prospects, and the positive impact it can make for your business as well as your cash flow.

 

How I discovered the solution that worked for me

For me, it was getting increasingly difficult to find and schedule client meetings with my increasing responsibilities of being a Mom with a terminal illness. Running from lead to lead was taking up the time I needed to run my business and finish the contracts that we already had in the pipeline. Holding on to how I always did things was holding us back. I needed a temporary solution to what was a temporary situation.

Then, one late fall morning while catching up with reading emails and industry updates, I came upon an article about a remodeling business joining with another remodeling business to create a winning partnership.

Inspired by that article I decided that if I could temporarily give up running the leads to create the sales opportunity I would then be able to concentrate on design, closing the deal and project execution.   Doing so would be the temporary solution I needed to solve my current challenges. It worked. I found a design firm with a great front end sales system and at the same time was struggling with project management and finding responsive sub contractors. And, fortunately there would be no conflict, as they only needed to temporarily fill this need as they were relocating out of the area in six months, one year max. It was a good fit, they were looking to hire a per contract designer/project manager. The fact that I already had a top notch construction team in place sealed the deal.

 

The results

How contractors can stop giving free estimatesAs a result of that temporary relationship I learned how to create a trained support staff at my own business and secured steady work for my team. By learning how to use and sell paid consultations our leads turned into project development retainers which then turned into profitable construction contracts. That temporary relationship was also a big success for the partnering firm; they had a record earning year and made a lot of money.

When I stepped out of my business and worked within a sales process for another firm it forced me to stop chasing down those leads that after too much investment of my time proved to be unqualified. As an owner, I would not have had the faith that charging for estimates would actually provide a constant flow of better customers. I was too invested in my previous training and experience as a sales person. I was dead wrong.

 

The change was an emotional one; here is how I did it

First I had to stop thinking of my role as being an in-home salesperson. Second, I had to better and fully understand why our clients were actually hiring us.  Finally, I had to set up a marketing and sales system that could drive value and was not contingent upon my making it through the prospect’s front door to get the “opportunity to do an estimate".

 

Here are the steps I took and worked for me:

Step 1. I optimize my online profiles to convey value; value to my target prospects.
Step 2. We made it easy to see reviews and then contact us.
Step 3. The first phone call replaced the in-home appointment.
Step 4. We added “homework" for the prospect to do and the use of a “paid consultation"
Step 5. We offered prospects a retainer to act as their very own personal consultant and helped them develop “their project”.

 

The result of adopting this system has been life changing

How to stop giving free estimatesI no longer run around from appointment to appointment. I now have the time to focus on creating more ways to provide paying prospects with value early in the process. Our business is running with more consistency and cash flow has increased. For every consultation I go on now we have a 70% close rate to a full construction contract, a 20% conversion to a design/material contract and about 10% of our prospects don’t move forward.  

Since returning to concentrate in full on my business and my new sales role gross sales have increased over the last twelve months by more than 75%. This is because we now focus on our ideal client. We actively seek clients that have budgets that match our business model and refer the other prospects to contractors that are better suited for them. Cash flow problems have all but disappeared.

It starts with faith. It took trusting a system, knowing who our client is, and having the time to create opportunities to provide value.

 

Cynthia MurphyGuest Blogger: Cynthia Murphy, CKBR, is a Certified Kitchen and Bath Remodeler and co-owner of Murphy’s Design, LLC. She operates a Design Studio in Fairfax Virginia. She will be launching her blog called “Home Design Labs” in June and hosting an industry specific interview podcast called “The Social Home Pro” this summer on iTunes and Stitcher radio. If you would like to connect with Cynthia you can contact her via her website, blog or you can email her at cynthia@murphysdesignllc.com.


Topics: Business Management, Estimating, Differentiating your Business, Earning More Money, Lead Generation, Guest Blogs, Prequalifying, Opinions from Contractors, Estimating Considerations, Customer Relations

The Latest Construction Innovations That Should Be on Your Radar

Posted by Shawn McCadden on Fri, Jun 19,2015 @ 06:00 AM

The Latest Construction Innovations That Should Be on Your Radar

Construction innovations for remodelersWhen it comes to your remodeling business, you want to be the best and stand leagues above your competition. But in a crowded field, this can be tough to do. Your customers expect professionalism and a job well done, which is what most of your peers are aiming to deliver as well. So if you’re seeking that extra edge with your business, you need to also do this – and then some. One of the best ways to impress your customers is by staying abreast of industry trends, and the newest innovations that can save them money and improve their results. Here are a couple of the ones worth watching, in commercial and residential remodeling, along with some tips for keeping yourself in the loop.

 

Pristine Aesthetics in Commercial Remodeling

As any commercial remodeler knows, one of the biggest challenges in the field is executing significant structural changes without killing the aesthetics of the space. One of the most common needs in commercial remodels is the addition of roof opening frames that provide structural support for HVAC units, coolers, roof turbines, skylights, roof drains, roof hatches and other rooftop equipment. The problem many remodelers have found is that the traditional way of installing such frames required welding, which created a mess and often left the area damaged and unsightly.

A new innovation has come on the scene, called QuickFrames, which takes care of this problem. The bolt-on, adjustable, pre-engineered roof opening frames only require a wrench or impact driver during installation, so there’s no need for the dangerous or ugly effects of on-site welding. Also, many warehouses are trending toward a white bottom deck (which welding would turn black) so using QuickFrames is an easy way to preserve the deck’s clean white appearance. Keeping customers informed about the benefits of using an innovative approach like this will show your vast expertise in the field and that you’re dialed in to their needs, which will ultimately help you win more business.

This video shows how easy QuickFrames can be installed, even as a retrofit

 

Personalization in Residential Remodeling

Differentiate remodeling designsJust as marketing techniques have all been swept up in the concept of personalization recently, remodeling is not exempt from this trend. In fact, it’s arguable that being adaptable to your customers’ wish lists is the only way you’ll succeed. You might be thinking – wait, isn’t the practice of remodeling personalized already? Yes and no. Yes, because when you remodel a home, you renovate the areas your customer has specified. But it’s not extensively personalized, since many remodeling companies don’t take it a step further and find out how to tailor every bit of construction to the customers’ wants.

For example, a hot craze this year is around making your home kitchen more like the commercial kitchens you’d find in a five-star restaurant. You may have a customer come to you and ask for a kitchen remodel, and they’ll ask for everything from granite countertops to a modern backsplash, upgraded appliances and maybe space for a wood-burning stove. They’ll think they’ve covered all the bases, but it’s your job to share with them what more they can do. Show them how their built-in refrigerator and freezer can be customized to their preferences, and how they can even request a butcher block island countertop that allows for multiple workspace heights. The goal is to go beyond the usual suspects in every area of the home, and offer new and personalized changes that you can bet the customer would love.

Stay in the Know

Beyond the latest tactics and greatest new products, your success in the remodeling field also depends on how connected you are in the industry and how up-to-date you are with new information. The two best ways to flex these muscles are by attending relevant tradeshows and by reading important industry publications. Many large manufacturing firms participate in several events year to year, where they debut their latest developments. By attending pertinent conferences, you can gain new insight and make important connections. You may also have the chance to meet people who work in industry press, who could later turn into valuable resources when it comes to getting your company exposure in remodeling publications. And even if PR isn’t on your agenda, simply reading all the big industry magazines can go a long way in educating you further about the field.

 

Rebecca HasulakGuest Blogger: Rebecca Hasulak is a prolific writer and dangerous dreamer. She sharpened her skill with the written word while she was an Associate Editor of a beauty and pop culture magazine, and further during her time as a Public Relations Executive. Rebecca now writes and delivers PR services under her business Quotable PR, and is happiest when with her daughter and loved ones. Follow her @BecksChristine.

 

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

Now Might Be a Good Time to Remodel How and Why You Do Marketing

Posted by Shawn McCadden on Tue, Jun 16,2015 @ 10:03 AM

Now Might Be a Good Time to Remodel How and Why You Do Marketing

marketing ideas for remodelersOn April 2nd, 2015 I presented a half day marketing workshop titled "Choosing and Targeting the Right Customers and Projects Types for Your Business". The workshop was billed as the keynote session for the Builders Association of the Twin Cities (BATC) annual trade show in Minneapolis.   At the workshop I shared new ways contractors can think about and do their marketing so they can attract their desired customer and job types. It’s what I call strategic marketing.   For those of you who missed the workshop here are some of the key points we discussed at the workshop.

 

BATC Builders and Remodelers Show information Take advantage of the timing 

The economy and residential construction are both picking up.  At the same time the majority of attendees agreed with me in that we are not yet confident that the pace of the current surge will be sustainable considering the uncertainties businesses and consumers still have about the economy.  With that in mind this is however a good time to take advantage of the surge to concentrate on developing market share in a strategic way.  It’s my opinion that most contractors would benefit from becoming a specialist in what they do and how they do it.  After all specialists typically command higher prices than generalists.  And, true specialists are always in demand, even in down economic times. Now is a good time to specialize, as long as you also work on branding to establish and maintain your position as a specialist in your desired market areas.

 

Here are some specific tactics contractors can consider and use to strategically build market share

Pick your customers, don't let them pick you:

marketing strategies for remodelersStop taking just any customers and jobs.  Be selective about who you will let become your customers.  For example why not only work with people who would say they are "working with" you, not those who would say you are "working for them".   Also, be selective about the project types you go after.   For example why not attract people who want high quality products.  If you sell using one markup across all cost categories the gross profit dollars earned on material intensive projects due to higher price point products is an easier way to meet overhead and net profit goals, both now and in the future, particularly when compared to selling and producing labor intensive projects.

Stop competing, differentiate:

I don't understand why contractors think they have to compete and or be competitive.   For most construction business owners competing means bidding. Home owners who seek bids are typically like auctioneers, except they are looking for the lowest price, not the highest.  And, rather than try to be better than your competition, why not seek to be different from your competition.  Being different attracts attention and consumers who want different also know they have to pay more to get different.  
One key to being different and attracting positive recognition for it is to concentrate on how you do what you do to demonstrate your difference, rather than work on what you do to differentiate.  One example of potential differentiation could include offering true Design/Build as an alternative to the traditional design-bid-redesign and bid again game. Another example would be helping prospects develop project specifications with the agreement that you will come back to present your proposal and solutions, but you will not leave them behind unless they sign your proposal and give you the required deposit.  

 

Being different comes with pros and cons

If you decide to use these example strategies many prospects will go away.  However, the ones that see value in your differences will become cogs in your new referral generating machine and will pre-sell the value of your differences to their referrals so you won't have to.  I call those types of referrals "layups".

 

Think of how you do marketing in a new way

marketing for remodelersThe old traditional marketing methods of trying to find prospects who want your services now and interrupting them to get their attention no longer work.  Today consumers are the ones deciding how they will find and qualify their project ideas as well as the contractor they will work with.  Instead use inbound marketing tactics that help consumers find your business.  This should be one of the two primary purposes of your marketing and can be accomplished on your web site using SEO tactics and good content on your site’s pages as well as your blog.  The other primary purpose of your marketing, particularly at your web site, should be to help prospects decide if what you offer and how you do business are right for them.  In other words your marketing should help them prequalify themselves so they either want to contact you or know they shouldn't.

 

Final Thought- Marketing shouldn't just be limited to creating leads

At the workshop I also shared one more new way to use your marketing; to advance the sales process.  Consumers want to gather information and ideas about their project, but they want to be sure they are getting accurate and useful information.  Savvy contractors are now using the content at their web sites to educate consumers before they call to setup an appointment with a contractor.  This saves both the prospect and the contractor a lot of valuable time.  In addition to offering project and product related information, you can also educate them about how and why you do business the way you do. Sign up to join our mailing list  This can not only speed up the sales process, it can also help clearly differentiate your business and therefore improve the quality of your leads.

 

 

Topics: New Business Realities, Contractor Training, Success Strategies, Sales Considerations, Differentiating your Business, Marketing Ideas, Web Site Related, Marketing Considerations, Customer Relations, Business Planning

Protect Your Business and Your Prospects By Not Leaving Your Plans and Proposals Behind

Posted by Shawn McCadden on Wed, May 13,2015 @ 12:55 PM

Protect Your Business and Your Prospects By Not Leaving Your Plans and Proposals Behind

construction_proposal-wrThe information you include in your proposal comes from your many years of experience and education. For this you deserve to be compensated. I would also suggest your proposal probably only contains a level of detail adequate for you and your team to build from. In reality your proposal may not have adequate detail for others to build from. This may be the best reason to explain to your prospect why you won’t leave it with them unless they buy from you.

If you leave your proposal and specifications behind and the home owner in turn uses them to engage with another business bad things may happen. Although you may not be doing it on purpose or for any devious reasons, by allowing the possibility that other contractors will work from your proposal, inexperienced contractors and homeowners may be making incorrect and costly assumptions. I am referring to assumptions about what is or should be included to do the job correctly, and to comply with building codes as well as safety requirements. By allowing such things to happen you may be putting other contractors, the home owners and or the success of the project at risk.

gavel_on_legal_dict-wrI also suggest you consider the possible liability you take on by creating specifications, in particular project plans, and leaving them with a prospect that does not do business with you. By doing so you may have put yourself into a position where the prospect or another contractor actually works from them. If they have challenges when building the project and decide those challenges were caused by your plans and or specs, they may have legal rights to sue you. Even if they technically don’t have legal grounds, what if they do sue you? Regardless of whether you feel you are innocent or guilty, you will need to cover your own legal expenses if you end up in court. Most likely you will not be able to re-coup your legal costs even if you are found innocent. If you are found guilty you may actually be required to pay the legal expenses incurred by the person suing you.

If you decide to take this risk, I highly recommend you obtain Errors and Omissions insurance coverage or Professional Design Liability coverage. Discuss these insurance policies and how they work with your insurance provider.  

Some big picture thoughts for remodelers to chew on before deciding to leave their work behind:

  • I suggest you are in the business of selling remodeling, not giving away free designs.
  • Some consumers will contact you just to steal your knowledge. Avoid being used as an unpaid consultant.      
  • Don’t let your proposals, specifications and plans facilitate the ability for “Bubba” to get the job rather than you.
  • Not every lead you get should or will be YOUR customer.
  • If you think you have to leave your work behind because every other contractor does, you are wrong.
  • If you have not had professional sales training you may be leaving your plans and a lot of money on your prospect’s table!

 

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Other related articles:

All Plans and Specifications Will Be For The Exclusive Use Of …

Managing Risks With The Right Design/Build Insurance Options

Design and Spec Considerations for Remodelers Looking to Break $1Million

Four Considerations for Contractors Offering Design - #4 is Most Important!

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

 

Topics: Contracts, Differentiating your Business, Legal Considerations, Plans and Specifications

How You React To Your Own Frustrations May Set The Example For Your Team

Posted by Shawn McCadden on Wed, Apr 15,2015 @ 06:00 AM

How You React To Your Own Frustrations May Set The Example For Your Team

Frustrated construction business ownerDealing 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.

Besides the people who get your goat others may be observing your reactions as well.  The observers may include your employees, trade partners as well as your customers.  How you react to stress and frustrations will definitely leave a lasting impression on them.

Consider these examples

If you beat the snot out of a chunk of wood with a sledge hammer as a way to cope with frustration and or stress your employees will likely think it’s ok to do so as well.  What if after seeing you do it they are frustrated by a client the next day , go out to the back yard of the job site and do the same in view of the customer?  What will the customer be thinking and how might it affect the atmosphere on the job site for the rest of the project?  How might it affect future referrals?

Construction leadership stylesNow 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.

 

A better suggestion 

Instead why not consider the difference between your roles and your identity.

Your true identity is who you would be if all of your roles were stripped away.  It's who you really are as a person and in reality has nothing to do with what your job position is.  

By contrast, your roles are the responsibilities and activities you assume in the course of life, or while on the job, whether by choice or otherwise.  And no matter what roles you serve in life, they are not who you really are as a person.

I've learned from experience that until owners, managers, and employees can separate their identities from their roles, they may be personally affected by the comments, attitudes, and expectations of their clients and co-workers.  This doesn't have to be.  Life is stressful enough already.  Don't let job stress add to it.

For more specific information on the differences between your roles and identities check out this Remodeling magazine article I wrote several years ago.

Summary

Construction leadership roles

The next time someone really upsets you at work stop, before you react, consider you are only at work and it's your job position that is being questioned or judged, not your identity.  Your ability to keep your identity and roles separate will help you keep a cool head in otherwise stressful situations.  And, how you react and act will serve as a much better example to everyone with whom you interact.  If what I suggest doesn't work for you or one of your employees you might want to seriously consider anger management therapy.

 

 

More articles related to leadership:

Breaking Past $1M in Remodeling: Getting Ready To Do It

Invest In Your Remodeling Business Now, Or Pay Forever

Information and Guidance To Evolve From Being A Contractor To Being A Construction Business Owner

Five Great Books for Remodeling Business Owners

 

Topics: Employee Relations, Differentiating your Business, Culture, Customer Relations, Leadership, Creating Referrals