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Remodelers: Can You Answer These Questions About How You Do Business?

Posted by Shawn McCadden on Thu, Oct 05,2017 @ 05:00 AM

Remodelers: Can You Answer These Questions About How You Do Business?

How should a remodeler do business

 

One way I help my clients remodel how they do business is to first get them to actually document how they already do business.  For most they think they know how they do business until I start asking clarifying questions as they attempt to explain.  I did this exercise one time with a $3M+ remodeler and his management staff.  The owner told me before we started how impressed I would be with how they do things and work as a team.  About 30 or so minutes into the meeting he came to realize only he knew how to explain it and none of his staff were on the same page as he.   He then, in a frustrated tone, asked his staff: “How does anyone around here get things done if none of you can explain how we do business?” 

One employee quickly jumped in and said something like: “Well we have to ask you every time and it seems you have a different answer each time so we stopped assuming and decided to just ask every time rather than risk being wrong”.

How a remodeler does businessBelow is a list of considerations regarding how you can do business as a remodeler.  The list starts with an initial inquiry from a prospect and is broken out by typical steps of the process up through wrapping up a remodeling project.  There are lots of things to consider related to each step depending on the type of work you do, who your target customer is and how you do or will decide to do business.  Keep in mind your decisions in each step can or will affect other steps.  Please assume it to be a partial list.  I hope you find the list to be a helpful way for you to get started thinking through how you do business. 

 

Steps related to selling and completing remodeling projects:

  1. Original contact:
    • How will prospects contact your business and then how will your business respond.
    • You will need ways to respond to inquiries from email, Voice Mail, showroom/office drop-ins and or your web site’s contact page.
    • One goal of this step should be to manage prospects’ expectations about what will happen next and when.
  2. Initial phone conversation
    • Who will call the prospect back and when?
    • Should it be a trained gate keeper or the salesperson?
    • What are the purposes of the initial call: for the prospect and for the business?
    • How will the business decide whether to agree to a first sales call?
    • Will your business establish and agree to an agenda and purpose for the meeting before you commit, or will you figure that out when you get to the prospect’s home?
  3. First sales call
    • Will this be at your place of business or the prospects home?
    • Who has to be there besides your business and how will that be decided?
    • How long will the first visit take and why?
  4. Decision time:
    • Remodeling business best practicesWhat does the business need to know about the prospect and their project?
    • Will you have them make a decision about whether your company is a good fit before or after you commit to and invest hours of your time developing an estimate and or proposal?
    • Will you require them to share their decision making process about the project and price before you attempt to get them to make a decision, or will you deal with all that at the same time you are expecting them to make a decision?
  5. Deciding if the prospect and project are qualified and if so for which service the company offers
  6. Design/Preconstruction agreement with a fee or free estimating and proposal generation
  7. Proposal presentation meeting
    • Who has to be there and if not there will you automatically reschedule and take your package with you?
    • Are you expecting a decision at the meeting? If so, what should/will your business do to help them make a decision?
    • If not expecting a decision at the meeting how long is your proposal and price good for?
    • If you charged to prepare the information will it be applied to the project price or is it considered a separate fee and service?
  8. Pre-construction and pre-staging
    • Backordered Stamp-WR.jpgWill you expect all product selections be made before offering a fixed price?
    • Will you schedule the job if there are any open selections to be made?
    • Will you get enough money at deposit to pre-stage the job with required materials, will you use your own money to pre-stage, or will you wait until you start the job to gather the materials?
    • Will you require clients attend and participate at a preconstruction meeting?
  9. Construction
  10. Project wrap-up
    • Is the final payment due on completion or substantial completion (do you know the difference?)
    • Will you allow a punchlist or require a precompletion list?
    • Do you have a process and supporting form you and your customers can use to both agree and confirm the project is complete?
  11. Warranty
    • Best business practices for remodelersWhen does the job end and the warranty begin? (What does your contract say about this now?)
    • Have you clarified warranty responsibilities depending on who provides the materials?
    • Will making the final payment be a condition of doing any warranty work?

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Topics: Business Management, Differentiating your Business, Customer Relations, Business Planning, How You Do Business