The Design Builder's Blog

Owning a business can be uniquely rewarding, but rewards do not come without risk.  Perhaps the most dreaded of those risks is a lawsuit.  While some contractors who get sued keep that worry in the back of their minds, others avoid thinking about legal issues altogether, or worse; they assume it can’t happen to them.  But contractor law suits do happen. Often.  While you can’t guarantee that you won’t be sued, you can prepare yourself by having a plan of action in the event of a lawsuit.

Here are the steps contractors should take if they get sued:

• Take notes about service of process.  Each jurisdiction has rules governing service of process (how you were informed of the law suit). Take note on how you were served so that you or your lawyer can determine whether there are grounds to challenge service.
• DO NOT ignore the Complaint! Do not throw the Complaint in a drawer and try to forget about it. Failing to respond to a Complaint could result in default judgment against you or your company. The sooner you act, the more control you have over the situation.
• Review the Complaint. Read the Complaint to gather some basic information about the suit. Who filed the suit?  Is the plaintiff suing your company, you, or both?  Why has the plaintiff filed suit? How much money is the plaintiff demanding? 
• Contact a lawyer. Do not attempt to engage the plaintiff on your own. Contact an attorney experienced in construction law.  Your attorney will help you analyze and understand your risks. If the amount in controversy is small, your attorney can advise you on how to best represent yourself. After consulting an attorney, you will be able to make an informed decision about how to proceed with the lawsuit.
• Contact your insurance company.  If you think that you may have insurance coverage for the plaintiff’s claims, contact your insurance company immediately, since most insurance companies require prompt notification of the claim. Your attorney can also assist you in reviewing your policy and obtaining coverage.
• Collect and preserve documents: Collect all documents, photographs, correspondence, etc. (electronic or paper) related to the case so that you can review them with your lawyer. Do not delete or destroy anything.  Hiding information from your lawyer can only hurt your case.  You could also face severe sanctions from the court for destroying or withholding information during the case.
• Be careful who you speak to.  Your conversations with your attorney are generally privileged. However, anything you say to a third party could make its way to the other side.
• Consider whether you can settle the case right now.  The vast majority of lawsuits end in a settlement.  Settling the case at an early stage can save a lot of cost and

You can’t guarantee that you won’t ever be sued but you can prepare yourself by having an action plan in the event of a lawsuit.

Note: This article is for informational purposes only and is not intended to serve as a substitute for consultation with a legal professional.

Guest Blogger:  Renee Schwerdt, Esq., Owner/Attorney at Plumb & True Legal Consulting and Representation.  Renee is an attorney and the owner of Plumb & True Legal, a law firm that serves contractors, architects, vendors and others in the construction industry.  Her new blog, Level Up, is available here.

How To Handle Mold And Avoid Liability As A Contractor

Mold remediation experts are not the only contractors who encounter mold on a fairly regular basis. Often times, the homeowner does not learn that there is mold in their house until a contractor points it out. This may be a restoration contractor, an HVAC contractor or even a plumbing contractor.  Read on to find out how contractors can handle mold at their job sites and avoid liability.

Contractors should always warn homeowners if they spot mold on the job even if that is not why they are there. Mold can pose a serious risk to the foundation of the home as well as the health and safety of the inhabitants. The homeowner can then contact an Indoor Environmental Professional (IEP) to fully diagnose the problem.

This should be good news to the homeowner. However, this puts the contractors in a tough position. Over the past few years, there have been a growing number of lawsuits against contractors who pointed out the mold to the homeowner. The homeowners often attempt to place the blame on the contractors as the source of the mold, but why?

The number of claims made to insurance companies regarding mold damage began to skyrocket in the 90s and 2000s. This was good for the homeowner because the insurance providers paid to have the mold removed and the area restored. It was also good for the restoration contractors because the insurance companies were paying them to do their job. The only entity that didn't benefit from this growing awareness was the insurance provider who had to cover the costs.

Insurance companies found a way out of this predicament by including new and more severe mold exclusion clauses in their policies. This meant the insurance companies were no longer paying for mold remediation. The funds had to come from the homeowner, the contractor, a lender, or a third-party source.

Homeowners didn't want to be stuck with the bill so they began opening lawsuits against contractors claiming that the mold was a result of their work. This greatly increased the risk of working for homeowners as well as in commercial buildings.

How Can Contractors Avoid Liability?

Contractors must rely on their own insurance policies to avoid liability in many cases. Their Commercial General Liability (GPL) insurance policy is a standard tool of protection. However, there is a pollution exclusion clause included in this policy. The exclusion states that the insurance does not cover any bodily or property harm caused by the escape, dispersal, or release of pollutants.

Whether mold is considered a pollutant that is not covered by this policy is a widely debated issue. Court cases often tip one way or another without offering any universal standings. Some cases have found the policy to be too ambiguous with their definition of pollution. Others have classified mold as an airborne pollutant.

Contractors are not advised to leave their career up to chance. Instead, contractors should consider investing in new insurance policies that are specifically designed to cover mold and pollutants. (As well as the standard GPL policy) Contractors Pollution Liability (CPL) covers liability for such pollutants with a clear definition that includes mold or fungi.

CPL may be the best tool currently available for contractors to avoid liability when mold is discovered on a property. That is in addition to proper risk management. Properly managing risk means carefully choosing what customers to work with and how the problem is approached if detected.

Dealing With Customers

The customers a contractor chooses to work with, how well they document their work, and how they approach the customer regarding mold will play a big role in how the situation unfolds. First, it's a good idea to avoid working with customers that already seem disgruntled with insurance companies.

This is especially true for mold remediation contractors where the homeowner already knows of the problem and isn't happy that their insurance policy doesn't cover the loss. They may still try to pin further damage on the contractor that outweighs the bill for the services provided. These customers are time bombs that should be avoided when possible.

Addressing the issue as carefully as possible is the final point of recommendation. It's important for contractors to put themselves in the homeowner's position. Mold remediation can be expensive work and the insurance providers have dumped the costs on the homeowner. They need to approach the subject carefully, with empathy, and with a proper course of action.

Risk Exists

It is impossible to work as a contractor and avoid risk altogether. However, by utilizing ethical work standards, by carefully choosing and approaching customers, and by adding CPL policies to their arsenal they can greatly reduce the risk associated with mold.

Guest Blogger: R.S. Hall is the owner of several successful businesses and the publisher of the website www.moldremovalrescue.com which provides solutions for mold problems.

Extra-Rugged Accessories Contractors Need for the Construction Site

If you're a contractor who spends any time at all on construction sites, you need extra-sturdy accessories. In some cases, these products are a safety issue — such as a hard hat — and in others they are merely the tools you need to stand up to the tough conditions found on active work sites. With this in mind, check out these suggestions for durable accessories that can stand up to harsh conditions — or at least come with a great insurance policy.

Unbreakable Sunglasses

In addition to your usual protective eyewear, you may also like to wear sunglasses while meeting with clients or checking out potential jobs or building sites. Instead of replacing your sunglasses every time they break while on the job, invest in an “unbreakable” pair. Amazon sells Polarized TRPL27 sunglasses with a flex frame that are ultra light and ultra tough. The lenses are polarized to eliminate glare, and the sunglasses come with a lifetime breakage warranty on both the frame and the lens.

Smartphone With a Protection Plan

If you’ve ever dropped a smartphone, you know what a pain it is to deal with a cracked screen and the expense of buying a new one. While rugged smartphones are not easy to find, you can get a high-tech smartphone that comes with a protection plan. For example, the HTC One M9 from T-Mobile comes with the appropriately named UH OH Protection Plan that replaces the phone at no charge if it’s cracked or dropped in water.

Tough and Comfortable Gloves

Depending on the time of year you are visiting work sites and how close you get to the actual construction, you should have a comfortable and durable set of protective gloves. The ideal pair of gloves should be thick enough to protect your hands against punctures and cuts, but still be easy to grip objects and move your fingers. Construction Concepts International sells a variety of gloves that are perfect for contractors. The Strong Suit “Second Skin” Work Gloves feature palms made of polyurethane for proper protection and form-fitted fingers for great “gripability.” These gloves are sturdy enough to last through several jobs, so you won’t have to replace them very often.

Sturdy Boots

While on the job, work boots are a must for comfort and safety. If you notice that you have to replace your work boots every few months, you might want to spend a bit more for something that will last. Sure, you can get work boots for $50, but if they wear out fast, they are not really a good deal. Invest in a pair of Moc Toe Work Boots from Duluth Trading; they run close to $200, but they are made from the highest grade of leather. Featuring Vibram wedge soles, the Moc Toe boots are sturdy and durable. As a bonus, you can replace parts of the boots that wear out, such as the soles and gel inserts.

Guest Blogger: Alison Stanton has been a freelance writer for the past 15 years. She enjoys writing about a wide variety of topics, and always looks for opportunities to learn about new subjects.

Essential Business Hacks for Independent Contractors

Over 10 million Americans are independent contractors, according to the most recent estimates by the U.S. Department of Labor. Whether that means you do freelance work or have started your own company and hope to employ many people yourself one day, most independent contractors have one thing in common: they are learning as they go.

Here are some tried and true tips to help you navigate the time, energy and, most importantly, money-sucking pitfalls of entrepreneurship, so you can actually appreciate the joys of working for yourself:

Get Eco-Friendly

Your customers will love you for getting eco-friendly and so will your bank account. Eliminate paper from your processes as much as possible. Having everything digital makes your business run faster and smoother and saves you money and time down the line.

If you travel for work and your vehicle is not the most fuel efficient, you’re throwing money out the window every month, as well as contributing to smog and pollution. But that doesn’t mean you have to invest in an expensive electric car to save precious startup money. Check out the EPA’s new SmartWay certification for a list of budget-friendly vehicles that reduce carbon emissions and have saved drivers over $16.8 billion in fuel costs since 2004.

Buy in Bulk and Ahead of Time

From office supplies to packing materials, the biggest waste of time and energy is buying things you knew you would need at the last minute and paying full retail price. If you’re a retailer, seek out wholesale options and buy in bulk for the maximum discount. Look into a Costco membership for any and all office supplies. Office furniture can also be found at the local thrift store, furniture rental company or hotel furniture liquidators for pennies on the dollar.

Don’t Let Cash Flow Stop You

You are bound to have cash flow issues at some point. The thrill of working for yourself can quickly become the anxiety of "why on Earth did I think I could stand not knowing how much money I was going to be making each month?" Your bills may be fixed, but your income is not, so saving money prior to striking out on your own and during the startup process is crucial. It’s impossible to foresee all the hidden costs that are sure to crop in the beginning, so you need a little cushion.

But not even a lack of cash flow can stop you these days. With the popularity of crowdfunding, job placement services and Craigslist, there are outlets everywhere for the hard working, resourceful, independent contractor. Leave no stone unturned and check to see if you qualify for any small business loans or grants from the SBA.

Leverage Free Technology

Marketing yourself doesn’t have to cost you a fortune, but beware of companies looking to take advantage of unwitting new contractors. There are a lot of lead referral services out there that boast thousands of job postings for everything from nannies to graphic designers. Often they pull the old bait and switch move: you spend hours creating a profile for their sites, adding product pictures, reviews, references and certifications only for them to ask for a credit card and a hefty fee when you’re about to hit submit. You don’t want all that work to go to waste, so you plunk down your credit card against your better judgment and pay for a month (or three) of leads that, honestly, may not even exist.

The good news is you really can market yourself for free. Research your competitors and find out what social media outlets they’re using. Take notes and improve upon their tactics to stand apart from the crowd. Many SEO experts recommend using five or less social media sites and keeping your focus on original, quality content. And don’t discount the power of LinkedIn for finding and connecting with the top names in your industry; it’s like the Facebook of finance.

Guest Blogger:  Stacy Eden is a Phoenix, Arizona native with a passion for art, power tools, and historical significance. She draws inspiration from classic cars, ancient mythological sculptures and jewelry designers such as Delfina Delettrez, Shaun Leane, and Dior Jewellery creative director Victoire de Castellane.

How Contractors Can Build & Protect Their Brand Reputation

For 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

Delivering 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

One 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.

Guest Blog: What Happened When I Stopped Providing Free Estimates

If 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

As 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:

The result of adopting this system has been life changing

I 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.

Guest 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.

The Latest Construction Innovations That Should Be on Your Radar

When 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

Just 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.

Guest 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.

Construction Equipment: Should You Buy or Rent?

The decision to rent or buy equipment for construction work depends on different factors for each business, according to Peter Gregory, Wells Fargo Construction Group Equipment Finance VP. He says that while renting is often a more attractive option in a tough economy when construction activity has slowed down, companies that need and use construction equipment regularly must decide how buying affects their bottom line.

Advantages of Buying

The advantages of buying the equipment your company needs to perform revenue-generating work include:

• immediate ownership
• deductions for depreciation
• interest to save on taxes
• onsite availability of equipment when work needs to be done

Note that deductions for depreciation are just one tax aspect of buying equipment, and any businesses subject to the Alternative Minimum Tax experience depreciation as a penalty, not a credit.

Thomas Westerkamp of Facilities.net says it makes sense to buy equipment that is just as expensive to rent as to buy, as well as equipment needed immediately in emergency situations to prevent loss or damage, or danger to health and safety, such as emergency generators and portable coolers.

Advantages of Renting

Equipment such as a scissor lift that might be used on a rare occasion would be wise to rent, allowing you to reallocate money towards buying equipment used more often on job sites. This way, the cost of maintenance is eliminated while the use of the equipment is still available. Renting is also advised when trying out new equipment and deciding if it's versatile, useful, and efficient for owning in the future.

How to Decide

One alternative to consider is to purchase quality used equipment which can bring the purchase price down from a new unit, while still providing the same capabilities and convenience of owning. But in this case, buyers beware! Check all safety equipment with the purchase, inspect it closely, and check all manuals and accessories to ensure it's in good condition for your purpose.

Other considerations when deciding to rent or buy include:

• Was the unit previously used as a rental?
• What are all the costs, initial and ongoing, of the rental or purchase?
• What agreements or contracts are part of the deal (purchase or rental) and what is included in them as far as dealer references, equipment demonstration, operator training, and terms of use and return?
• If you buy, will it eventually pay for itself when you consider the time saved and renting fees?
• Does the machine show signs of having been repaired? If so, what is the quality of the repair?

The decision about buying or renting really depends on unique business factors at individual companies. Mid Country Machinery owner Lucas Peed advises that the decision to buy or rent has a lot to do with the type of contractor business. He says local contractors are more likely to buy equipment to get the tax breaks and equity, while general contractors who travel a lot are more likely to rent equipment rather than haul it out of state for jobs, which adds to the cost of operation and ownership. Discuss your potential investment with your accountant and be thoughtful of the longevity of your potential purchase. If it will be an asset to your business for years to come, continue to bring new business, and improve the efficiency of your work, it is a wise investment.

Guest 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. She enjoys creating informational content for clients including blog posts, articles, white papers, case studies, and talking points, as well as business documents such as sales letters, business plans and strategic plans.

Guest Blog: As Designers, Are We Honest in our Business Dealings?

In the design industry we have many challenges besides meeting the concerns, wants, and needs of our precious clients. Many businesses have resorted to marketing on the basis of something for free. It prompts clients to want what is offered for free, however, at the same time, causes the knee jerk reaction question to arise, “How can it be free, what’s the catch”?
This poses itself as one of the challenges most noteworthy; the honest perception of value that is created. For a certainty, most trends are to downplay, for market segmenting purposes, the true value of reputable trades or product.

As designers we need to realize that no sale is really complete until a successful installation of product or service has been provided for the paying, trusting client. This client in-turn may or may not be a super advocate for our business’ success, depending on the final result.

Wouldn’t it make sense as designers to present all services and products in the true light of actual cost, thus leveling the playing field by being honest in our business dealings? Is it not tantamount to lying to present design or trade services as something that can be commoditized for less than its true value, or for free, when we know it isn’t?

To advertise something for “free” in reality means something else needs to recoup the costs related to the “free” product or service. This is, in all respects, “Bait and Switch” by offering something for free that really isn’t. Doing so may call into question being honest in our business dealings.

“Bait and Switch” tactics are used all the time by many larger corporations and have severely damaged flooring installation, renovation, carpet cleaning, vacuum sales and services, design agent services, product value and the like. The result leaves well intentioned clients in a quandary of who, why and what they can trust.

All operations that work on lowest price marketing set everyone up for failure and feed our waste facilities with massive amounts of materials, due to bad decisions made as a direct result of unscrupulous enterprises who are in it just for the money and opportune themselves to the consumer disposition being taught today. It may be manufacturers, distributors, retailers, advantage driven designers and sales persons who are not honest in their business dealings. Full disclosure of what is lacking in the offer is skillfully sold over to reap unjust profits, at the expense of the honest and unwary, with no regard to the environmental impact.


Lowest cost marketing is not being honest in business dealings, as it may not spell out the true reason something is less, or much less, as many products and services, on the surface, appear to be the same. The adage, “You Get What You Pay For”, is usually visited after the disappointment comes, once the bargain fails to meet the expectation and the delight for the savings is replaced by the sinking feeling, “I’ve been had again”. As designers, is this really the outcome we want our clients to experience, let alone, having to deal with it once exposed?

As designers, we should never want to feed the greedy price shopper mentality created by corporate opportunists and smaller businesses who buy into this mindset. By reflecting on true value all the way around, it makes good sense to present our services and that of others in the true light of costs and need. Today many are thinking in line with “save the planet”. This means as designers we want to be the forerunners in leading and educating by example. Therefore, let us be honest in our business dealings, and thus save our designer business services, giving due representation to great trades, products, costs, the environment and education of our precious clients while we are at it.

Guest Blogger: Ron Preston started into the trades at the age of 13 with tools purchased from savings acquired working seven nights per week. Today at 53 he enjoys working with people to bring their dreams to fruition and writes regularly to share his knowledge and thoughts. Let Ron know what you think about his guest blog and the opinions he offers.

Contractors Are Unknowingly BUT LEGALLY Giving Away Their Identity To Lead Gen Companies

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.

So let's just jump to some research we did at MyOnlineToolbox

We never intended to focus on the specifics of Lead Generation Terms & Conditions.  The issue started to intrigue us when a handful of our contractor website marketing clients were having challenges getting website leads.  We discovered through our research that these contractors signed up to one or more Lead Generation Services over the years.  The contractors simply did not realize how hard it was to literally compete against themselves based on how well the Lead Generation companies were using their information against them.

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".

We think it is fair to replace MAY NOT with WILL NOT when money is not to be made.  And considering the whole issue is already ambiguous, we also wish someone could explain what "OTHER LIMITATIONS" means since we feel the limitations are definitely directed against the individual contractor.

And, to make matters worse, the terms also state the contractor agrees the lead generation company can take the content (reminder: your Business Bio Information that you submit) and use, copy, reproduce, and sublicense any content on your profile page to drive traffic to the content.  But they do not have to pass the consumer to the contractor.  

So let's guess what the lead generation company will do next... You wonder?

We interpret the situation this way:

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.

Just imagine if every contractor knew up front, in big bold explanation what he is giving up when he agrees to join a lead generation service (for free or paid, doesn't matter).  But many times we feel the contractor is being misled into not only what he is getting for free, but also what he is not getting and how their company information may no longer be used to their company’s benefit. 

It begs to wonder why anyone would agree to one way terms with something as important as their business identity.

Maybe we are wrong

If we are wrong about this let’s hear from a lead generation company who feels we are wrong and can offer a specific explanation as to their terms and conditions to ensure contractors know the difference between your services and other lead generation services.  But it would also be nice to hear that, unconditionally, your company would never use a contractor's business data to drive traffic to your site in order to then connect a potential consumer with different contractor.  

For more information

Unfortunately we discovered so many ways information is used against a contractor that it was easy to organize and share our findings with a visual understanding.  We do that here in a few short videos lumped together as Say No To Lead Generation Companies.

So in summary, there are only two ways to win at getting more online lead opportunities:

1. Do not sign up for any Lead Generation Services to avoid content being used against your company over a period of time.  And if you feel so compelled to try a service, then by all means just read the Terms & Conditions first since you may have second thoughts.
2. Have your own website and learn the basics of website marketing (referred to as SEO Search Engine Optimization).  A little bit of website tweaking will give you years of ongoing opportunities.  It is not that hard all.

Guest Blogger: Brian Javeline is President & Co-founder of www.MyOnlineToolbox.com, providing business software and the industry’s popular Contractor Website Online Marketing Education Class.