Red Flags on a Sales Call

I read an article this morning in NARI’s magazine (www.RemodelToday.com) about mistakes contractors make in dealing with home or building owners. One of the topics was e-mailing bids.

The writer pretty much nailed the biggest problem with e-mailed bids. She commented that if clients insist or demand that their bids be e-mailed, that’s a red flag. It signals that the client’s main priority is price. I’ve discussed this before and couldn’t agree more.

But I’d like to add – When clients become insistent or demanding on any subject, that’s always a red flag and unless you get the situation in hand, you are going to have nothing but trouble. This is normally brought on, as the author of the article pointed out, by the clients thinking they have the upper hand in the negotiations and they are going to take advantage of it. Bad plan.

Negotiations for any job must be a win-win, which means everything is in equal balance for both the owner AND THE CONTRACTOR. This is not about making the owner happy. This is about win-win. You want a job done; I will do it for my price. We both get what we want. If you want certain materials or a particular design, you must be willing to pay for it. If not, then we are not on a win-win path and it’s time to close the proceedings. Remember, the owner sets the price on any given job by the design they choose and the material selections they make.

Other things that clients might insist on:

“We want to compare quotes.” In previous posts here, our newsletter and in our books, I have talked about clients asking for itemization so they could compare bids they might get. That isn’t going to happen. In 41 years of estimating, I have yet to meet any client that could do a fair and accurate comparison of 2, 3 or 4 estimates from legitimate contractors. You and I would have a tough time comparing your quote and mine. How can a client with little or no training in construction do a relevant comparison?

“We don’t have time to meet with you again.” Sorry, I don’t have time to do an estimate for you. Win-win, remember? If I am going to take the time to do an estimate, the client must be serious. That means they are willing to spend as much time as needed to get the decisions made and their project put together as needed. I don’t have time is a verbal red flag that they are trying to use you.

These issues boil down to the client not wanting to make a decision or only looking for the cheapest price. Here is one more thought for you to consider. Why are you in front of people like that? That is the question I would be asking myself if any of the above scenarios showed up on my sales call. What did or did I not do that led me to find that type of client?