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On Your Contractor Web Site, Qualify, Don’t Disqualify Your Prospects

Posted by Shawn McCadden on Thu, Mar 14,2013 @ 06:00 AM

On Your Contractor Web Site, Qualify, Don’t Disqualify Your Prospects

Prequalify prospects using your web site

 

When you write or have others write content for the pages of your web site and your blog, make sure what you write doesn’t offend visitors or make them feel dumb.  (Unless of course that is your plan!)  Recognizing this potential challenge can make the difference between purposely qualifying your web site visitors and making them feel disqualified.  Let me explain.

 

Help visitors prequalify themselves

One important and valuable way to use your web site is to help visitors prequalify themselves.  By this I mean let them use the content you post as a way to determine whether there is a good fit between what they are looking for and what your business offers.   Think beyond just products and project types.   What is probably more important, to both you and them, should be how you do what you do and how your business operates.   For example, if you charge for design and or estimates, let them know that.   If you don’t leave your proposal behind unless they sign it and give you a check, let them know that too.   Using the two examples, the point is if they want free design and your proposal, to use one or both as bidding tools, they won’t be contacting you.  Instead, they will move on to another contractor who will. 

Now, just because you tell them how you do business doesn’t mean they will be motivated to do business with you.   So, share with them why, what and how you do what you do could have a value to them.  

Never assume they know, tell stories

prequalify leads using web siteIf they have already experienced what you offer, either from already working with you or from working with another contractor, they might already know the benefit(s).   The thing to keep in mind when you are writing is that you won’t know what they know and what they don’t.  We all know what happens when we assume.   So, don’t just tell them about what you do, tell them stories about how others you have served have benefited already so they can image themselves benefiting in the same way.  If they don’t see enough value to justify contacting you, again, they will move on.  That is how you can qualify them, through what you write, but make them feel like they have qualified you.

On the other hand how you tell your story might just make them feel you have disqualified them.  Do that and they won’t be doing business with you.  Here are a couple of examples of how the way you write your web site content might make them feel disqualified and how to avoid them:

  • You talk too much about who you don’t do business with and why.   Sure this may help the people you are describing go away, but it might also make good prospects go away because they find you too negative or judgmental.  Instead, keep it positive and describe the people you want to do business with.  
  • You offer your own opinions as to why people who look at or see things differently than you are wrong headed.  Forget about making judgment.  Stick to offering positive reasons for your opinions and your way of doing business.  And if possible, share what your past customers have said to back up your reasoning.
  • You use technical language and or industry buzz words that consumers have never heard before and or they don’t know what they mean.  If you do this they may feel dumb, or assume that interacting with you will be over their head.  To avoid these potential challenges skip the buzz words or offer links to definitions they can understand.  

Catch and release prospectsCatch and release prospects?

Keep in mind that visitors to your site might not yet be ready to buy remodeling or construction services.  If they are in their research or discovery stage they will be looking for good information and a good contractor to eventually work with.  Make sure what they find and read on your site helps them in their research and at the same time gives them a good impression of what it would be like working with your company.  If they disqualify themselves from calling you, make sure they feel good about it.  They may come back to nibble on your bait again some day!

 

Topics: Sales Considerations, Marketing Ideas, Web Site Related, Marketing Considerations

Everything A Contractor Needs To Know About Certificates of Insurance

Posted by Shawn McCadden on Thu, Mar 07,2013 @ 06:00 AM

Carrie Van Brunt-Wiley

 

Guest Blogger: This article was contributed by Carrie Van Brunt-Wiley, Editor of the HomeInsurance.com blog. Carrie has been writing insurance news and consumer information for HomeInsurance.com since 2008. She graduated from the University of North Carolina in Wilmington in 2005 with a B.A. in Professional Writing and Journalism.

 

Everything A Contractor Needs To Know About Certificates of Insurance

Contractors Insurance certificate

 

When hiring a contractor, many consumers are extremely cautious – especially those who have fallen victim to a shoddy repair job or other construction problems. That's why you should offer assurance that you’re a trustworthy, reputable contractor who won’t leave clients in a tough financial situation. How? Make it easy for potential clients to verify your responsibility for your work and your employees by providing a certificate of insurance with proof of valid coverage.

 

What is a Certificate of Insurance?

A certificate of insurance is the document issued by your insurance company that certifies you are covered by a valid insurance policy. Here are the most important features a customer will look for on your certificate:

  • Your policy number and the named insured
  • The effective date of the policy and the expiration date of the policy
  • The types of insurance coverage purchased
  • Dollar amounts of applicable liability

In broader terms, your Certificate of Insurance helps your customers understand what will and won’t be covered before you begin construction on their properties.

How do they work?

Contractor Insurance CoverageA Certificate of Insurance is easier for your client to acquire than it would be for them to see your actual insurance policy. It also provides the information they’ll need if they do need to file a claim without divulging any of your confidential information such as payroll and sales figures.

It’s important to note that your certificate is not a substitute for your policy itself. You are responsible for requesting the proper information on your certificate (see the bullets above).

Obtaining your Certificate of Insurance could also help you sell jobs if you’re able to produce a copy with your proposal. Customers are much more likely to choose a trustworthy contractor who offers information upfront as opposed to one who is unable or unwilling to provide valid credentials or who waits until the information is requested.

How do I get my Certificate of Insurance?

All you have to do to secure your Certificate of Insurance is contact your licensed insurance agent, make sure you are actually insured with a valid policy, check that you’ve got the coverage you need and request a certificate. You may even be able to view certificates online and print multiple copies as needed.

What does “additional insured” mean?

What additional insured means“Additional insured” is an option to add coverage for another party to your policy. For example, your client will likely request to be listed as an additional insured in order to defer liability for any accidents or injuries that occur on their property during your project. If you’re a contractor working with subcontractors on the same project, you may also add a named insured since you share joint liability to pay workers’ compensation if an employee is injured. However, the primary policyholder will remain fully responsible for covering the premium payments.

Remember, it’s best to be upfront and honest with your clients in order to document that you’re running a trustworthy contracting business. If you have any questions about your contractor insurance coverage or your Certificate of Insurance, contact your licensed agent and make sure you’ve got everything you need to prove to your clients that you’ll get the job done right.

Knowing you're prepared for a problem can give clients the assurance they need that there won't be any. Wear that assurance like a badge by providing your Certificate of Insurance upfront to potential clients. It could give you a big edge over your competitors.

 

Related Topics

Does Your Construction Liability Insurance Policy Have the Right ‘Coverage Trigger’?
Contractor Insurance Can Help Set You Apart from Competitors
Managing Risks With The Right Design/Build Insurance Options For Your Business

 

Topics: Sales Considerations, Insurance Considerations

How Contractors Can Make More Money, Faster and By Doing Less

Posted by Shawn McCadden on Sun, Mar 03,2013 @ 06:00 AM

How Contractors Can Make More Money, Faster and By Doing Less

Making more money as a Contractor

 

With only so much time in a day, contractors need to maximize the revenue and or gross profit they earn each day in order to cover business overhead costs and contribute to their desired net profit goals.   Selling and producing more work is certainly one option to consider.  However, why not implement ways to increase the selling price and earn more gross profit without having to do any more work in the field or add anymore labor costs at the job site.

 

Options to consider

If you want to increase your sales volume and earned gross profit you can either produce more work or increase the selling price of your projects.  Here are a few things to consider:

  • Producing more work at the job site means you will need more labor and the project will take longer.  Finding and keeping more employees busy can be challenging.    
  • Increasing your selling price doesn’t have to be limited to raising the prices of what you sell.  Increasing your selling price can also be accomplished by increasing what is included in the selling price.
  • Assuming you mark up everything you sell, if you find the right prospects and sell them higher price point products than you have used in the past, your average sell price goes up and the gross profit earned on each job goes up as well, without adding more labor or days to the project schedule.
  • Also, consider that selling product options can be another way of increasing the sell price and earned gross profit, again without having to add any more time, do any more work or add any more labor to get the work done.

 

Here’s one example of what I am talking about 

CSL CEU trainer Shawn McCaddenAt a recent Remodeler Summit event I participated in for Marvin Windows and Doors at their Warroad MN manufacturing facility, contractors learned about Marvin’s new option of prefinishing the interiors of their window and door products.   By selling this option to their customers, contractors can increase the cost of each window they sell by offering an additional service to their customers.  And, they can do so without increasing the production time of a window project and without having to add any additional on site labor to their projects.   The windows are prefinished at the factory, under controlled conditions and can either be prepainted or have a clear finish applied.   Because the prefinishing is done off site, all the mess of prepping and finishing is avoided, no extra job labor is needed and the smell of any finishing products is avoided at the job site.  Selling prefinished construction products can be a win-win, both of the contractor as well as the homeowner.  Selling prefinished products means more gross profit earned for the contractor without doing any more work.  The home owner benefits because more work is done in less time, with less mess and disturbance to their home and their daily lives.

 

Marvin Windows Inswing French Doors PIF french door Marvin Windows Ultimate Sliding French Doors Clear

 

Here’s one more example

how contractors can make more moneyAt a tour of Reliable Truss and Components Inc., a division of National Lumber in Mansfield MA, I found out they offer prefabricated custom structures and components.  Using this service contractors can have components of their projects prebuilt and even prefinished in a controlled factory environment.  The components are then delivered to the contractor’s job site ready to install.   Partnering with a vendor who can offer this type of service helps the contractor earn more money by doing less work in several ways.  

  • The contractor can earn gross profit on the labor as well as the product being provided by the vendor.
  • At the same time, the contractor can be earning gross profit on the labor and the products being installed by his own crews while they get the project ready for installation of what is being built off site.
  • Some vendors, including Reliable Truss, will also come prepared with the equipment needed and help your crew install the prefabricated and prefinished items at the jobsite.

 

 	 lack of skilled construction labor

 

It just keeps getting better!

Making more money as a remodelerBoth examples above can help contractors earn more money in less time.   Both examples offer ways contractors can get more work done without having to add any additional talents or skills to their crews.  Both examples also eliminate or reduce the need to find and bring in sub contractors to do work the contractor’s own crews either don’t have the talents for or might not be cost effective at doing.

I bet more and more contractors will be thinking this way as the increasing costs of labor and the lack of available skilled labor puts pressures on their businesses and their profits.

 

Topics: Labor Costs, Success Strategies, Sales Considerations, Differentiating your Business, Financial Related Topics, Earning More Money, Production Considerations, Marketing Considerations, Keeping More Money, Shawn's Predictions

How Should Remodelers Be Prequalifying and Selling To Gen Y?

Posted by Shawn McCadden on Tue, Feb 26,2013 @ 07:41 AM

How Should Remodelers Be Prequalifying and Selling To Generation Y?

Gen Y Sales Process

 

A recent guest blog posted here at the Design Builders Blog was written by a Generation Y member.   The author, Mark Brown, offered some advice for contractors on how to work with Gen Y employees.   His blog created quite a discussion with over 38 thoughtful comments as of posting this blog from contractors and employees from all generations.   One contractor praised the blog and the discussion but also brought up another very valid consideration for contractors and remodelers: How to sell to Gen Y clients?  The answer to that question is probably a very big conversation and a very involved one as well. 

One thing is for sure.  Trying to force Gen Y to buy remodeling (or anything) the way you have always sold to other generations isn’t going to work.  That said how about bringing the answer down to a few simple but big picture considerations to help get the conversation started and offer some direction.  With a new direction in mind, you can then seek out and get the remodeling sales training you will need to sell to this new customer type.

If you can’t beat Generation Y, why not join them

The members of Gen Y are used to getting information instantly and for free.   Almost every one of them has a smart phone and can Google any subject or topic to find instant answers or information, all at no cost to them.   And they can get that information at any time of the day or night they want it.  That desire and internet content available about anything you can think of has definitely defined how Gen Y does their research and makes their remodeling or home improvement buying decisions. 

For contractors who have always sold to the generations born prior to Gen Y, the idea of providing instant and free information about a remodeling project for some young kid who isn’t ready to buy or make a decision without first checking you and your suggestions out online using social media throws a monkey wrench into any veteran contractor’s long standing selling process.  Those changes probably also all but kill a contractor’s sales closes rates when it comes to Gen Y remodeling and home improvement prospects.

“The reality to recognize is that Gen Y isn’t going to change.   So, contractors need to change how they both market to and sell to Generation Y if they want to do business with them.”

 

Save yourself a lot of time, give them what they want

How Gen Y makes Remodeling DecisionsIf your construction or remodeling business doesn’t have a web site, stop reading right now or recognize and commit to the fact that you better get one up right away if you want to sell to Gen Y.  Done right, and it must be done right, a contractor’s web site  offers a place to give Generation Y, and any other generation for that matter,  the information they need to work through their decision making process and prequalify your business as a good option for them to consider.  If you’re strategic and you put the right information on your site, you won’t need to waste your time doing live sales calls with someone who would never have bought from you anyway and or who isn't far enough along yet in their decision making process to make any commitments that will include money.

 

What Information Should a Contractor’s website have on it?

Good question.  It has a lot to do with how Generation Y makes remodeling decisions.  I’ll offer some advice and suggestions on that topic in a follow up blog to be titled “If you don’t or won’t offer Generation Y Prospects what they want they will go away”

 

Topics: Sales, Success Strategies, Sales Considerations, Differentiating your Business, Social Media for Contractors, Building Relationships, Generation Y, Shawn's Predictions

Contractors Working With Home Buyers Considering Renovations

Posted by Shawn McCadden on Tue, Feb 19,2013 @ 06:00 AM

Diane Menke and Tamara Myers

 

Guest Blogger: Diane Menke, VP/Operations Manager of Myers Constructs, Inc.  Diane Menke (left) and Tamara Myers (right) are the co-owners and principals of Myers Constructs, Inc., an award-winning design to build firm serving the greater Philadelphia region. A certified Women Business Enterprise, Myers Constructs is also a member of the U.S. Green Building Council, NARI, and NKBA.

 

Advice For Contractors When Working With Home Buyers Considering Renovations

The Construction Pro: A Key Player in the Home-Buying Process

Contractor working with home buyers

 

 

Most people who are in the market for buying a home that is in need of renovation are not home-construction experts — and they don't know what the various necessary upgrades will cost them. That's why it makes sense for them to reach out to a reputable local construction expert for information before they make a property purchase. We get calls from people in this position often.

This is the advice we give them:

  • Working With Home Buyers Considering RenovationsTheir real estate agent should provide them with comparable values for the property they are considering. The agent should also tell them where that prospective property may be lacking, in terms of value and sale-ability. For example, does it have enough bathrooms? Does it have updated systems, finishes, and appliances? What other features should it have to compete with the highest priced comps in the area?
  • Once they find a property they want to put a serious offer on, they should reach out to a building professional for some assistance in developing their renovation budget. That budget should be weighed against what the comps and the offer will be. If they do not yet have a relationship with that construction pro, they should expect to compensate them for their time. A good carpenter might bill them $70/hour; a design-build pro might run $120/hour or more. Small structural repairs and a bathroom refit with no design might be perfect for the carpenter, while a complicated project like a kitchen or addition require a design/build professional who has experience in those types of projects.
  • buying a home in need of renovation Most property buyers do not need to have full plans and exact budgets to formulate their offer. If they come away from the discussions with a ballpark range of expected costs — with a 10-15% cushion added for contingencies that might be found once walls are opened up — they should be in good shape to make an offer.
  • Once they close on a property purchase, we encourage them to reach out to those same construction pros and offer them the work on their new home. In this way, they will develop mutual trust with a valuable ally on their wealth-building team.

 

Topics: Success Strategies, Sales Considerations, Marketing Ideas, Guest Blogs, Building Relationships, Customer Relations

Understanding and Complying With Home Improvement Contractor Laws

Posted by Shawn McCadden on Tue, Feb 05,2013 @ 06:00 AM

Help Understanding and Complying With Home Improvement Contractor Laws

MA HIC videos with Shawn McCaddenMany remodeling contractors may be operating their businesses illegally without even knowing it.  In addition to construction supervisor licensing, most states now have some type of licensing or registration requirements for contractors who offer and or perform home improvement work.  Home improvement contractor licensing and regulations govern how contractors conduct business, not how they build or renovate at the job site.  Fines and penalties for lack of compliance can be substantial, including losing your right to conduct business.  The specific details of home improvement contractor laws and regulations are different from state to state, so it’s a good idea to make sure you’re aware of and understand requirements where you work. 

 

What states have Home Improvement Contractor Licensing requirements?

Click here for an interactive map where you can find out.  You or your remodeling customers can also use the map to check to see if a specific contractor is licensed.

 

Currently there are about 26,000 Registered Home Improvement Contractors in Massachusetts.

Recently the Massachusetts Office of Consumer Affairs and Business Regulation ("OCABR") released a series of five short videos to help Massachusetts home improvement contractors become aware of and learn how to comply with the Massachusetts Home Improvement Contractor Registration law.  The videos are well done and are targeted to help Massachusetts contractors, but a lot of the information shared in the videos could also be very helpful for contractors doing businesses in other states as well.  Each video covers a topic that is regulated in some way or another by any state's home improvement regulations.

Home Improvement Contractor Law videos with Shawn McCadden

At about 17 minutes of total time, it’s worth your time to watch all five videos even if your business is not in Massachusetts.  

The first 45 seconds of each video is an introduction and is just about the same, so after watching the first video in full you can probably skip ahead in the other four.

 

Basic Rules for Home Improvement Contractors:

Video #1:  Registration

 

Video #2: Contract Content & Payment Terms

 

Video #3: Advertising & Estimating

 

Video #4: Performance of the Contract

 

Video #5: Arbitration & Enforcement

 

In addition to being an industry representative in the videos, I was also pleased to be able to offer input on the script.  Before, during and after the filming I worked closely with Steven J. Zuilkowski, Hearing Officer for the Office of Consumer Affairs & Business Regulation.  During the filming I also worked with Jacqueline F. Chandler, HIC Program Coordinator.  Both demonstrated they were genuinely interested in helping contractors comply with the regulations and were seeking input to help ensure the videos served the intended purpose.  Recently Steve shared with me that the OCABR now also has a blog were he has written several posts for contractors regarding help interpreting the HIC regulations, check it out here.

I want to thank Barbara Anthony, Undersecretary of the Office of Consumer Affairs and Business Regulation and the OCABR for doing these videos to help contractors.  It was an honor for me to be asked to participate in the project and I had some fun too!

 

Steven J. Zuilkowski

       Steven J. Zuilkowski

Jacqueline F. Chandler

    Jacqueline F. Chandler

 

Barbara Anthony

  Barbara Anthony

 



Topics: Videos, Legal Related, Contracts, Starting a Business, MA HIC Regulations, Sales Considerations, Marketing Considerations, Business Considerations

Understanding and Selling the Many Shades of Green

Posted by Shawn McCadden on Fri, Feb 01,2013 @ 12:02 PM

Green Building and Green Products: Understanding and Selling the Many Shades of Green

Selling green remodeling

 

Contractors and building materials dealers (LBM dealers) have found it challenging figuring out how to tap into the green building opportunity.  Some say the problem is caused by “green washing”.  Without a single and accepted definition of what green building is and what products are or are not green, it’s no wonder they are challenged.  Whether you’re an LBM Dealer, a product distributer, a professional designer or a contractor, it might not really make much difference what you consider to be green.  Before you get all upset at that statement and or with me, please hear me out.

 

Here’s my rationale

I’m not saying you can’t have your own definition.  What I am saying is if you want to sell green, you better make sure you know how your target customer defines and decides what is green if you want to sell green to them. 

Selling Green ProductsSounds easy right?  Not really. 

Unfortunately, if you ask 10 people what green is, you’ll get at least 10 different answers!  So, how should contractors and LBM dealers (and even their staff) respond to homeowners who ask for green products when these same customers might not even know what they’re looking for?  Solution; You need to know the questions to ask before you risk providing any answers! 

 

“What is green and what is not is up to the person with the money!”

On February 8, 2013 I’ll be presenting a seminar at the NRLA LBM EXPO in Boston titled Understanding and Selling the Many Shades of Green”One of my goals at this seminar is to help LBM dealers take advantage of the green building and renovation market that is expected to grow significantly as the economy improves.  Another goal is to help them so they can help their contractor customers sell and use more green products. 

Green Remodeling

 

In addition to discussing how different consumers define green and why, I plan to help them decided which products to sell and how to sell them.  To do so I will be offering and discussing the list of criteria below.  Contractors trying to decide what to sell should also find the list very helpful.  The key to success will be matching some or all of the criteria below to the green motivations of the home owner with the money.

 

 

Seven Criteria for Choosing Green Products to Sell

#1: Is the material effective in your conditions/climate?

Green Products for LBM DealersHeat, cold, moisture, insects…

#2: Is the material healthy and safe?

For workers, consumers and the planet

#3: Is the material durable and easily maintained?

Saves time, money, replacement, and disposal costs

#4: Is the material available in your area and can contractors work with it?

Saves time and money

#5: Is the material used efficiently?

Locally sourced, transportation considerations, processing considerations

Efficient use of resources, recycled and/or recyclable

#6: Is the material cost effective?

Now and in the future: maintenance, replacement, comfort, health effects/costs

#7: Is the material aesthetically satisfying to the consumer?

That’s important too!

 

Topics: LBM Related Topics, Green Considerations, Success Strategies, Sales Considerations, Design Trends, Marketing Considerations

25 Sample Questions Contractors Can Use For Prequalifying Prospects

Posted by Shawn McCadden on Sun, Jan 20,2013 @ 06:00 AM

25 Sample Questions Contractors Can Use For Prequalifying Prospects

Save Time by prequalifying remodeling prospects

 

 

Smart remodelers and contractors know that time is money.   Wasting time on the wrong prospects eats up the time they need and should be spending with the right prospects for their businesses.   By using methods to prequalify leads contractors can gain back a lot of time currently being wasted on people who were either the wrong client types and or were never going to buy from them to begin with.

 

Incorporate prequalifying questions into your lead sheet

prequalifying questions for remodelers

Below is a list of suggested questions contractors can use to help determine whether someone who inquires about doing business with them meets the business’ pre-established definition of a targeted prospect.   To help contractors make best use of this list I’ll be discussing how and when to use these questions, on the phone and or in person, at an upcoming sales workshop.   At the workshop I’ll also explain how to customize a lead sheet using questions that help prequalify a prospect and captures information the sales person can use if a sales call is scheduled.  With the right lead sheet as a tool, anyone at the office can be trained to use the lead sheet to begin the prequalification process even before a salesperson becomes involved.

What you say and how you say it

If you plan to use any of the sample questions below, be sure to put them in your voice and or use your own vernacular.   Just be sure your prospects will understand any of the words or terms you use without the need for previous construction or remodeling experience.

 

Questions for prequalifying prospects:

  1. Is there anything you’d like me to know before we begin; about you, your family, your home, your expectations…?
  2. Why do you want this done?
  3. Have you remodeled before?  What was that like?
  4. prequalifying questions for contractorsWhat are you looking for in a contractor?
  5. How long have you lived in your home?
  6. How long do you plan to stay in your home?
  7. Do you know what year your home was built?
  8. How long have you been thinking of remodeling?
  9. How long have you been considering this project?
  10. Are you trying to stay within an investment amount?
  11. What is your ideal start date?
  12. What is your ideal completion date?
  13. Have you done any research on this project?
  14. Where are you in your research process?
  15. Are you looking to hire a carpenter, or a professional remodeling company?
  16. Are you speaking with any other contractors?
  17. Is there a reason you haven’t already decided to work with one of the contractors you have already spoken with? 
  18. Is there something you were hoping I would be able to do differently?
  19. Do you have any plans or a design in mind?
  20. Are you interested in financing or paying cash?
  21. How will you decide which contractor you will partner with for your project?
  22. How will you measure whether or if your project has been successful?
  23. Will there be anyone else involved in making decisions about this project or which contractor you will choose to work with?
  24. When Mrs. Jones referred you to us/me, was there something she said that stood out and motivated you to contact us/me?
  25. Are you looking for an estimate or a fixed price for this project?

Bonus question:

What do you think we will need to do or discuss if you want me to give you a fixed price for your project?

 

Remember, contractors make money selling the job, not building it!

Want to sell more jobs and make moe money?  Need sales training or coaching to help you and or your team reach your sales goals?   Contact Shawn today to discuss how he can help.  


Topics: Sales Considerations, Marketing, Prequalifying

You Need a Target Before You Can Target Your Marketing

Posted by Shawn McCadden on Sun, Dec 23,2012 @ 06:00 AM

You Need a Target Before You Can Target Your Marketing

Target Customer for remodelers

 

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.

targeting remodeling customersI’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.

target customers for remodelers

 

Need help?

Remodeling customer demographicsOne 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. 

Marketing strategies for remodelersReady 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."

 

Topics: Working with Vendors, Sales Considerations, Differentiating your Business, Marketing, Mentoring/Coaching, Business Planning

How To Help Remodeling Prospects Make Buying Decisions

Posted by Shawn McCadden on Wed, Dec 19,2012 @ 06:00 AM

How To Help Your Remodeling Prospects Make Buying Decisions

Remodeling 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 Remodeling sales cycleby 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.

Construction proposal

 

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.

 

Topics: New Business Realities, Project Meetings, Sales Considerations, Differentiating your Business, Customer Relations, Plans and Specifications