My 2012 Wishes

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May I make a wish for 2012?

That suppliers and manufacturers would stop using pictures of guys and gals wearing a brand tool belt. Those new belts haven’t spent a minute on a job site, they even look stiff and uncomfortable. Worse, the screwdrivers, hammers and pliers have no paint or dirt on them. Come on suppliers, get real.

That contractors would pay attention to their websites, recognizing that the website might be the first impression a client has of them. And that they would put their company name and phone number at the top of each page.

That when contractors call and leave a phone number, they would speak slowly and distinctly so we can return their call. Not everyone has CallerID (it’s not available to us), and we’ll return your call if we have the number. How good can it get?

That people would stop “borrowing” things and instead pay for what they use. No contractor would build two bathrooms and only charge for one. But too many believe it’s okay to borrow another person’s software or tools.

That contractors would have an attorney check their contract language BEFORE they give them to clients to sign.

That contractors that drive vehicles that drip oil on the client’s driveway and/or sidewalk would just go away.

That everyone would discover that reading is sexy. Get right to it gang. One hour a day.

OK, now your turn. Tell us your wants and wishes list. We’d like to see what you come up with.

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Things are looking up. The contractors that I talk with daily on the phone are projecting good things for 2012. Many are telling me that they are getting more calls than last year and certainly more than two or three years ago. Granted, the big, high budget jobs are not in the abundance they were back in 2006 and 2007, but jobs are starting to come back nevertheless.

We have seen an increase in phone calls and emails in our office this month and all the things that I look for in a better economy are starting to happen.

Be aware that you may have to take a job or two that is a bit outside what you like to do but hey, there is a good side to that. A new job that you haven’t done before will force you to educate yourself about that job, and do a better job of estimating, presenting, planning and scheduling. You’ll sharpen your skills. And you’ll make sure everyone does what he or she is supposed to do so you don’t lose your ASSets on that job.

What is causing the increase in business? Well, we’re pretty sure it isn’t the politicians or the government. The increase is due in part to needed maintenance on the homes and buildings of our potential clients. They know they need to keep their buildings in good shape or pay big money down the road to cover “deferred maintenance issues”. I believe the smart contractor will remind potential clients of that in every presentation. The old saying of “You can pay me now, or you can pay me later” certainly applies to the condition of homes and buildings.

There is also a push by several governmental agencies to do energy retrofits. If you aren’t doing that work, you may want to look into it. That is where a lot of the government grant money is being spent.

Read an hour every day gang. Leah Thayer’s d5R is a good place to start. Watch your local magazines and newspapers, learn what’s going on in and around your town. Figure out where the new business is and get right after it.

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I received a note from a contractor recently. He had gotten a call from a potential client for a job he’d quoted 9 months earlier. They want to do the job he quoted them, but at the same price and now he’ll lose money on it. What should he do?

First, you should only give out quotes if you have a commitment from an owner. Don’t go to all the trouble and fuss of estimating a job and writing a proposal without having a verbal commitment (at least) that they intend to do the work.

When you quote a job, the price should only be good for 3 days. Be sure to tell them that. Are they going to do the job or not? Help them make a decision.

Now if they call you back at some point later in the game, the first thing you say is yes, you would be glad to come back out and discuss their project, but so there are no misunderstandings, material and labor prices have gone up and you will have to re-estimate the cost of the job. If they are okay with that, set the appointment.

If they trot out some of the tired old BS about the economy being bad and that all contractors should be cutting their prices if they want the job, and why aren’t you willing to work for free, then simply excuse yourself and find another potential client. If they wanted the lower priced job, they should have signed a contract when you first quoted the job. Tell me, does your grocery store sell you bread, milk or eggs at the prices they charged nine months ago?

This all boils down to running your business like a business and charging enough money for your work to cover your job costs, your overhead and make a reasonable net profit. If you are not willing to charge the prices you must charge to pay your bills, you’ll have little or no chance of surviving financially.

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If you’re looking at hiring a website designer or SEO provider, beware! The stories we hear from fellow business owners on how they’ve been treated by these businesses defies description. You think you have heard bad stories about contractors being flaky or bad. Ha!

So what should you do before hiring someone to get your website up and running, and hiring someone to help you get found on the web?

Make sure you understand the basics first. We have an article on how websites work on our website here – http://www.markupandprofit.com/how-to-get-a-website.html

You want to approach this project just exactly like the media, Chamber of Commerce, Better Business Bureau and Angie’s List tell your clients to approach a construction project. Look for a website designer just like you should look for a contractor.

A referral or recommendation from a friend is a great start. If you can’t find a referral, ask a potential website designer for references. Don’t be shy – call their references and get the straight scoop. Don’t just ask if they delivered the website – ask the references if their website can be found on the web. Too many website designers are big on the “make it pretty” process, but don’t bother with the details that help a website get found. Test those references by trying to find their website yourself – if the reference is a store in a given town, search for a product in that town and see if the website appears in Google.

When you’ve selected the company you want to work with, make sure they provide a well-written contract that specifies a start and completion date and benchmarks so that you know things are getting done. You need a payment schedule tied to the benchmarks, and make sure the payment schedule is not front end heavy. If the company has problems with that, walk away. We hear all kinds of stories about these flakes taking money and then disappearing or, just as bad, going out of business.

What happens if and when a provider has taken your deposit or maybe a progress payment or two then goes out of business? I personally think that you should file a claim in small claims court against the owner (and make sure all their personal information is part of the contract). If the amount is larger than allowed in your local small claims court, have your attorney sue the owner. These clowns get away with this because no one calls them on it. They take the money, shut the business down and then start another business with a new name. Hmmmmm, doesn’t that sound like some of the construction company owners we’ve heard about over the years?

Get a solid contract, check references, set deadlines and walk carefully. You don’t want to be the next contractor I hear from who’s been taken by a shady website designer.