The Design Builder's Blog

Guest Blog: This Contractor Avoids Bad Reviews.  Is He Lucky or Smart?

Guest Blogger: David Profitt, owner at Profitt Custom Homes, LLC is a NC Licensed General Contractor.  David’s business offers construction of custom homes and remodel/renovation projects ranging from simple decks and porches to whole house makeovers, all as a Design/Build contractor.

Avoiding Bad Reviews

Anyone who has spent much time in this business knows full well the law of averages apply religiously. Out of every 10 customers, you will have two that think you're great, one that thinks you're a thief and the rest fall somewhere in between.

I suppose the word is "thankfully", the rise in social media has been offset by the economy so the events highlighted in the Dietz lawsuit news story haven't become as widespread as they no-doubt would have otherwise. I have been fortunate that over my nearly 3 decades in the business the overwhelming majority of my customers have been well satisfied with the work I did for them. But. like everyone else, I have had a few that felt otherwise.

Lucky or Smart?

"Thankfully" may not be exactly the correct word for it, as I typically put in a lot of long hours planning every project before the first shovel hits the ground, draw out the projects in cad (3D since 2001), run structural analysis on everything affected (engineer for 11 yrs before getting into building), put only known-entity skilled tradesmen on the job, personally oversee all the projects, visit the adjacent neighbors and introduce myself before stating any project that might potentially impact them, and constantly communicate with the client.

So I wouldn't attribute the low percentage of problems to just luck, but every once in a while you're going to get that one "special" client.....

Some real examples from my experience:

• The one who, at the closing table on a completed new home, decided he wanted to re-negotiate the price and not pay for his $15k in accumulated change orders.  I went to a "pay as you go plan" after that.  
• Or the one where the client had a one-of-a-kind rooftop cedar deck built as an add-on to the original whole house remodel. She was thrilled to death with it until a trusted friend who lived 300 miles away in a totally different building-cost market told her she had payed too much for it.  Truth is I had over-charged her so badly that I actually lost money on it.
• Or the guy who wanted a financial concession out of the cabinet maker when the CM put a more expensive (turned) faux leg on his master vanity that was shown in the CM's pre-construction 3D representation. This was even though he and his wife both liked it a lot better than what they had "approved" and the price didn't change.

The more I think about it, the more I'd like to retire.

Guest Blog: What Happens In Vagueness Stays In Vagueness!

 Guest Blogger: Reva Kussmaul, owner of Remodel411.  Reva began her practice as a remodeling coach in 1998.  Reva believes that remodeling should be a 50/50 relationship and if it wasn’t cultivated as such - nightmares can occur.  According to Reva, those nightmares are typically caused by a gap in communication and it could come from either side.  For Reva it became quite obvious that someone who knew about and cared about both sides was a missing piece to the puzzle of remodeling nightmares.   So, she decided that both homeowners and contractors could use a coach when it came to their relationship - the remodeling relationship that is.  In this guest blog Reva talks about the difference between an designer and a decorator.  Check out her book: Remodel 411: Secrets to a Successful Remodeling Relationship

What Happens In Vagueness Stays In Vagueness!

I'm constantly running into consumers who, not only used the lowest priced proposal and bidder, they also want me to offer the lowest proposal to fix the work “done wrong” and yet provide the highest quality work.

I've looked at three "done wrong" electrical jobs in the past four months and one shower installed incorrectly as well. When I advise the homeowners about exactly what’s wrong and what it will take to fix it, they're blown away at my pricing.

I get very clear about what the costs are and why, even to the smallest details;  like "materials don't just appear - someone has to go to the store, wait in line, load the truck, use the gas to go to and from then get the materials to the job-site - all of which is part of the cost."  

If it’s too good to be true…

I understand home owners’  “wishin' and hopin” aspect of wanting the lowest price to work out; plus get high-quality work and having no change orders.   But much research has to be done by the contractor to know if such WILL be the case.  I always give my potential clients a possible change-order scenario regarding something that just isn't visible when going out to look at a project.  Plus, I usually have my sub go in the attic and under the house to check joists, plumbing, electrical to see just what might be change-order possibilities waiting to happen.

If he finds something questionable, the beauty of technology these days is - he takes a picture and shows it to the homeowner immediately, along with an explanation of the problem.

So, it's not accepting the lowest price that is the homeowner's challenge. It's "hoping" it will turn out the best and everything will work out as intended. Again, as I state all the time, it's a 50/50 relationship, not a one side is wrong all the time scenario. It's about clarity of communication on both sides. And, until both parties know and recognize this we'll keep hearing the stories and there will be a constant need of fixing the "jobs done wrong!"

Contractors must stop under-bidding. 

They should be honest about what things cost.  Being in business as a contractor is not a hobby, it's how we earn a living.   Homeowners must be willing to do the research it takes to find out why things cost what they do and stop wanting to get things "on-the-cheap".     I have found many homeowners who get it and, unfortunately, many who don't. Contractors can separate themselves and their businesses by helping them.

Solving this problem should also include a “how is your relationship with money” conversation; both about the giving and the receiving.  If either party is vague about their discussions about money think of it this way: 

“What happens in vagueness stays in vagueness!”

Love this industry and I will continue to move toward win/win rather than making either side wrong!

Making everything that goes or has gone wrong one-sided is to live in the problem and not become part of the solution.  I've had “homeowners from hell" and, on bad days and during some tough years, I’ve probably been thought of as a “contractor from hell".  For many of us it’s simply being human and bringing our personal “stuff” into our work.  Happens in every area of life and, truly, that is where the work lies.

I know there may be some web sites out there focused on making the contractor wrong but please keep the above in mind.   It’s a relationship and absolutely not a one-sided affair.  It’s a 50/50 and must be treated as such.

Let’s get out of vagueness!

Happy Remodeling!

You Need a Target Before You Can Target Your Marketing

Recently three of my consulting/coaching clients have started the process of updating their web sites.   All three of them had sites that were created several years back and have since sat on the web with few if any changes, updates or the addition on any new content. Only one had a blog. All three of them also came to realize that prospects were not finding their sites via search engines.   However those prospects were going to their sites to find out more about the remodelers after they already had a first meeting and became aware there was a web site to look at. As a result of my questions and little follow-up discussion with their prospects these remodelers came to realize they essentially had static on-line brochures that offered little to differentiate their businesses from other remodeling businesses. And, they also learned that their sites did not attract prospects or help them move them along to a decision during the sales process.

I’m sure this story is true for many remodelers. If you’re one of them and you’re tired of never ending sales cycles, having to sell on price, working for people you’d rather say no to and you can’t seem to generate enough volume and or gross profit to have a healthy business; it’s time to decide who you want to target for prospects and start strategically marketing so they can find you and so you can convert them into customers.

Think of it like this 

The target below offers a shooter points no matter where the bullets land, as long as they land on the paper.  However, if the bullets land in the center the shooter will get far more points than if they hit somewhere around the perimeter.  The goal for the shooter should be to calibrate his or her weapon and then properly aim so the bullets hit the center each time.   The same holds true for remodelers.  If your margins are low because you’re not hitting the paper, or if you are and you’re only getting low scores, it’s not the targets fault and it’s not the weapon’s fault, it’s the shooter who needs to make the adjustments.

Need help?

One resource remodelers can take advantage of for help with better targeting is their vendors.  Vendors who carry well known product brands know which demographic of customers buy different products based on their quality, benefits and related cost.   They also typically get support in this area from the product manufacturers and distributors they do business with.   If you establish a relationship with a good vendor who offers marketing help and support, it can be like having a whole team of marketing experts working on helping you find more and better customers.   The great part about it is that helping the remodeler helps the vendor, the distributor and the manufacturer all at the same time.  When something gets sold everyone one wins!

Recently I had a discussion about this topic with Marshall Baser, Business Development Manager for AW Hastings in Enfield CT.   Hastings is a distributer that specializes in the Marvin Window and Door brands.  Marshall and his team work with the vendors they supply to help remodelers and replacement contractors improve their businesses and therefore sell more.   One way they do so is to help contractors better target their marketing to the right prospects for the different price points of windows Marvin offers.  In addition to help with strategy, Hastings also helps vendors and remodelers attract quality leads through joint advertising that highlights the remodeler, the dealer and the products. If that has you excited you’ll love the fact that Hastings and their vendor partners typically share the cost of the advertising with the remodelers they work with. 

Ready for the new normal?

Being successful and profitable as a remodeler is and will be different as we eventually enter into an improved economy with new and changing customer demographics.  Smaller remodeling businesses with fewer resources need to find ways to gain an edge in the marketplace.  I think Marshall summed it up really well for these businesses when he shared this advice:  "Contractors should consider aligning themselves with retail suppliers who truly understand them and their business.  They should get to know each other well, and create a strong business partnership with one another.  A quality retailer can be a tremendous resource helping the contractor improve their overall business volume and profitability through the products that they sell, as well as through the value added services that they offer, including targeting the right prospects for those products."

How To Help Your Remodeling Prospects Make Buying Decisions

Consumers reading or watching the news are being fed information everyday about financial scandals, difficulty obtaining credit, increasing costs on just about everything, and the uncertainty of when things will improve.  Let’s face it, bad news sells better than good news, there is plenty of it and as a result consumers have a low confidence level. 

The consumer needs to have confidence

Before they will commit to buying remodeling, or anything for that matter, they need to have confidence in themselves, what they plan to buy, and, their salesperson.  Take the time in the sales process to understand their concerns so they gain the feeling that you know what they are up against.  Again, they want options, but just throwing options at them will increase their confusion and concerns about making a decision.  Work to gain their trust and confidence, not by what you say, but rather by the intuitive questions you ask. 

If you know and ask the right questions, questions that help them feel you must know what you’re talking about, and that get to the heart of the purpose for their project, as well as their concerns about it, they will come to see you as the trusted expert.  If you go about interacting with them in a sincere and purposeful way, they will come to trust you, your solution, your business, your purpose, and, ultimately their ability to make a good decision.

The consumer needs proof

A good conversational exchange may help swing a prospect over to your side, but I suggest they will need proof of your offer and claims so they can confirm any agreements and stay confident after closing the deal.  Proof can be accomplished in many ways.

For example you could provide strong references that can back up from personal experience your abilities and promises as real.  Professionally prepared project specifications and agreements that detail the project as well as the customer’s purpose for doing the project will show you truly listened and captured important details.  A payment schedule in your remodeling proposal based on project milestones can help them feel confident they will receive and actually see value as they make progress payments.  Describe for them your process for producing their project.  Let them know about your preconstruction and precompletion meetings and why you do them.  Tie several benefits of these meetings to any concerns they may have expressed during your discussions. 

Some of you may already be doing these things. 

If you are, but your still not seeing results, rethink how and when you do them.   Make sure your solutions are presented in a way that your customers can see how they address their purpose and concerns.   Don’t assume anything anymore, except that you can’t make assumptions.  People remember 10% of what you say, but 90% of what they say. If a customer says they like your solution, ask them why and seek a detailed answer.  In doing so they will hear themselves justify their decisions and you get a chance to make sure they didn’t add something you couldn’t deliver on or miss something you may already be including.  

Looking for sales training and or a sales coach? 

Contact Shawn to find out how he helps remodelers and other construction related businesses all over the country achieve the business and personal results they desire.  If you’re not earning and keeping enough money for your retirement yet he can help you change things.

Remodeling Prospects Need A New Process For Coming To A Buying Decision

Consumers need a new process for coming to a decision.  This definitely includes consumers considering remodeling projects at their homes. They can no longer assume they will increase the value of their home just because they remodel.  Even low price might not be a compelling reason to buy.  They need new reasons to go forward, and it becomes the salesperson’s job to help them find those reasons. 

Every consumer must go through due diligence before making a buying decision and this is further complicated because each one will have a different path; one that is personal to them.  They are journeying into new areas and might not even know how or where to get started.  The new remodeling salesman must be a decision engineer, methodically guiding consumers through their specific emotional and intellectual considerations relative to making a confident buying decision. 

Notice I said guide them

They must feel like the decision and the process they went through was their own and that they didn’t miss anything that should have been considered.   The old school approach of telling or convincing a prospect what to do will no longer work.  Once they come to realize a process for making their decision, the salesman must then become a trusted adviser, with the knowledge and ability to offer appropriate design, product and project delivery options. 

The consumer has come to expect options

Manufacturers can and should provided information and education relative to product options, differences and price points.  Retailers selling to remodelers should be getting this information from their distributor and manufacturer reps.  The entire supply chain should be sharing this information with contractors through trade shows, educational events and personal interaction.  

To improve sales and ultimately business results, I suggest remodelers find good retailers to do business with who will provide this information; then attend their offerings and study up.

Five Great Books for Remodeling Business Owners

 I have always loved reading to learn about new subjects.  When I was first in business as a remodeler I read a lot of articles in trade magazines.  They offered great ideas, best practices and sample paperwork or forms I could put to use right away.   However, right about the time I sold my business I also started reading books on business related topics.   After reading a handful of titles I came to the realization that the articles in the magazines were helpful and offered individual solutions for a variety of typical business challenges, but the books I was reading offered much broader and more comprehensive views about big picture business strategies and opportunities. 

In many ways the books I read helped me understand how I had grown my business, what made me and my business more successful than many other remodelers and their businesses, and they helped me better understand why my business had salable value beyond just the value of the hard assets.  I quickly came to the realization that, had I read those books much earlier in my career, perhaps I could have increased the level of success I enjoyed.   I also came to realize that I would have dramatically reduced the time it took to build my business had I read those same books when I first started my business.  

The books in the list I offer below fall into the top five books I think remodelers should read if they want to grow a successful business and reduce the total time it takes to do so.   More importantly, these books can help remodelers avoid the frustrations, wasted time and wasted money that come with the trial and error approach of going it alone as a business owner.   Even if you still can’t build the business you want on your own after reading these books, you will definitely know what help you will need to get there

“The E-Myth Contractor” by Michael Gerber

This is one of several E-Myth books by Gerber.  They are all worth reading, but if you’re a contractor this one gets right to the point about what you need to do to build a contracting business that runs without you needing to do everything yourself and be there every minute of the day so things get done.   If you ever want to sell your remodeling business, or at least be able to take an extended vacation, make sure you grab this book.

“Good to Great” by Jim Collins

Many business owners are happy having good businesses.  Others decide that their businesses, when compared to other businesses, fall into the good category; a term sometimes referred to as relative success.   If you want more than just a good business Collins and his team has done the research to figure out how it’s done.  He offers some great strategies to consider as well as some great examples of companies and their leaders who made the jump from good to great.  He also shares the importance of and the type of leadership required to achieve greatness.

“The Great Game of Business” by Jack Stack

 If you would like to have an open books business that involves all employees in the creation of and sharing of company profits you should definitely read this book before you do so and well before you start creating your plan.  Not only does Stack share strategies for doing so, he lets you know the challenges to expect, how to get ready for them and how to identify employees who will never go along with the changes.  He also shares a process to use to help educate employees about business financials relative to their job positions, how profits are earned and how they can measure their individual contributions in ways that are real for them.  As I mention in my blog about profit sharing, businesses that share profits often earn more profit as a result!

“Selling the Invisible” by Harry Beckwith

Back before the September 11^th attacks my remodeling business was humming and qualified leads came in faster than we needed them.  Then, after the attacks and up through February, we had only sold about $15,000 worth of new work.   I had to do something to get the business back on track.   That’s when I found “Selling the Invisible” and it changed forever they way I looked at and did marketing.   In his book Beckwick discusses the difference between the “outside perception” people gain of your business from traditional marketing and the difference a business can enjoy if its marketing projects the “inside reality” customers who do business with you come to know.  Customers spend way more money to get something they consider different.  If your business has an inside reality that really differentiates your business from the competition you will not regret reading this book.

“Managing for Excellence” by David L. Bradford and Allan R. Cohen

There are all kinds of books available on the subject of business leadership and I’ve read at least a handful of them during my career.   In my opinion this is the best book on leadership that I know of.  If you looking to not only be a great leader yourself, but also create a whole team of leaders at your remodeling business this is the book that best describes how.  As a word of caution; if you’re afraid that one of your employees might become a better leader than you, don’t bother getting this book.  As you will learn in the book, the only way you can become a great business leader and create a great business is to create other leaders who can replace you.  If you want to sell your business someday you need to read this book.

Help Your Clients Prepare For and Deal With Remodeling Fatigue

Even if everything has been going well so far on the project, after about 6 weeks your clients are likely to experience what I call remodeling fatigue.   They’re just sick and tired of the disruption to their home, their normal family schedule and their lives. And, if they’re not aware of remodeling fatigue, it could happen to them and affect your team well before the typical six week mark.

Living through the experience of remodeling your home is not easy.  As creatures of habit its only human nature that remodeling customers get worn out and worn down by the normal remodeling process.  If you have ever remodeled your own home you and your family have probably already experienced this condition.  However there are several ways you can help customers get prepared for, delay and deal with the onset of remodeling fatigue.   A page on your website and or a blog about this topic can help you advice prospects and clients about this condition.

Help them get mentally prepared:   Let them know what to expect they will live through while the construction is under way.  Tell them about things that might affect them like the noise, the dust, shutting off their water, change orders and the decisions that come with final selections and unanticipated challenges.  Just as a doctor would do with patients regarding medications, a good remodeler will warn clients that it is likely there might be side effects experienced during the remodeling process.   By doing so clients can recognize the warning signs so they will be able to mentally and physically adjust.  Also, my experience was that by discussing these realities in advance, the fatigue might not set in as early, or at least would not be as significant, as early, as it might be if my team had not warned them.

Help them get physically prepared: Living through the remodeling process can be much easier with some preparation.  For example, remind customers they will not be able to cook while you remodel their kitchen.   Suggest they consider cooking and freezing easy to microwave meals and or collect take out menus before you start their kitchen renovation.   Some remodelers have told me they actually provide their clients recipe books and or a collection of local restaurant menus to help with this.   If you are renovating their only bathroom as part of a project, ask how they plan to deal without a toilet for a few days or more.  They may not have even thought about such realities.  Maybe you or they can even set up temporary spaces to tide them over until they get their homes and their lives back.

Earning good online customer reviews and referrals for new projects has more to do with the experience your team provides customers than the work they perform.  If you manage their expectations you’re more likely to exceed them and delay the onset of remodeling fatigue.

Guest Blogger: Jason Dickerson is a freelance writer for Direct Marketing and Analysis who focuses on ways people can make their home's more energy efficient and green.  When Jason isn't writing he enjoys mountain biking and spending time with his wife Marissa.

How Remodelers and Their Customers Can Both Make Money Being Green

So you have a client that has decided to remodel their home. Considering that they’ve decided to make a serious investment in their home, it’s easy to suggest that they should also think about investing in something that can pay them dividends.

The value of adding green energy infrastructure to a home is threefold. Not only will residents save money in the long run by decreasing the amount of energy they purchase from their retailer, they’ll be helping reduce America’s dependence on foreign energy, and they might even make money by selling the energy they don’t consume to others.
Here in Texas, there are plenty of energy retailers that offer special plans for homeowners with green energy technologies installed on their property. If your clients need to find out which retailers have the best offers, tell them to visit energyproviderstexas.com to explore their options.

What is green energy?

Green energy is a big buzzword in politics these days, but it’s rare that someone actually explains what it is. Green energy generally refers to energy produced through means that are not dependent on fossil fuels. Instead, renewable resources drive the production of energy. Some of the most recognizable forms of green energy are hydroelectric energy, wind energy and solar energy.

Hydroelectric energy

Hydroelectric energy is one of the most developed forms of green energy across the country. For generations, American engineers have been developing dams for many of our nation’s rivers. Once a river has been dammed, engineers can control how much water passes through at any given time. As that water flows, it rotates a series of turbines thus creating energy.
Unfortunately, if you don’t live close to a major water source, this form of green energy probably isn’t available to you, and it’s definitely not something a single homeowner can implement on their own property. That said, hydroelectric energy is collectively one of the largest sources of renewable energy in the country.

Wind energy

In order to turn wind into electricity, a new type of windmill has been developed. Often these windmills are installed in large groups referred to as wind farms. All throughout West Texas, there are thousands of new windmills that have been built over the past decade, and wind-generated power is becoming an increasingly substantial source of energy for the Texas grid.

Individual homeowners can harness the wind to produce energy on a small scale, or if they’d rather not make that sort of an investment, many energy retailers offer products that are comprised of energy derived solely from wind farms in Texas. Either way, utilizing wind energy is one of the most effective ways for Texans to support green energy.

Solar energy

Harnessing the energy of the sun’s rays requires the use of solar panel technology. While solar panels were once extremely pricey, prices have come down as technology has advanced. Now, many people in sunny regions, including many areas of Texas, are installing their own personal solar arrays in order to capitalize on the most abundant energy resource in our solar system.

If one of your clients is interested in pursuing a green energy solution during the remodeling process, be sure to suggest they install their own solar array. Solar energy in particular can really pay off in the long run, especially when homeowners elect to sell the energy they do not use to other consumers on the grid.

If a client is interested in adding a solar array to their home, but isn’t sure if they can afford it, there are still options for them to consider. Some energy providers in Texas subsidize solar arrays, by offering to lease them to homeowners.

Green energy and remodeling go hand in hand

Considering how volatile the energy market has been in Texas over the past few years, it’s easy to make the case to many clients that green energy infrastructure is a worthwhile investment. Consider adding green energy installation to your skillset in order to capitalize on the current trends in the market!