The Cost of Being Lowest Bid
By Michael StoneWhy would a serious construction-related business owner want to be the lowest bid on a project?
Lesson Learned: Lead Generation Companies
By Michael StoneLead generation companies don’t know your ideal clients or your most profitable type of work, and don’t care because they get paid anyway.
Depending on Referrals
By Michael StoneTake charge of your marketing and let the leads you get by referral be the frosting on the cake.
Design Agreement Surprises
By Michael StoneIf you want to avoid problems when selling your services, take steps to prevent problems at your first meeting.
Selling Design Agreements
By Michael StoneWith a renovation or remodeling project, your goal from the very beginning should be to sell your services by way of a design agreement. Sell an agreement to design the project since that’s the first necessary step before the job can start.
A Guaranteed Price
By Michael StoneWhen selling construction services, quoting a guaranteed price protects homeowners from the price increases that happen with a too low price.
Educating on Quality
By Michael StoneHome and building owners need to know that hiring the least expensive contractor often means compromising on quality.
Sales: Setting Ground Rules
By Michael StoneMichael shares a few situations you’ll run into when selling construction-related services that provide the opportunity to set ground rules for the relationship.
Sales: Are You There to Help?
By Michael StoneWhen selling, are youhere to find out how much money you can make, or to provide a service and help?
Doing Things Right
By Michael StoneMichael shares a valuable tool that will improve both your sales and your relationships.
Should I Change My Markup If I’m Not Making Sales?
By Michael StoneShould you change your markup method if you aren’t making sales? Don’t spend hours fiddling with numbers; invest the time in your sales skills.
It’s All About Sales: Gaining a Commitment
By Michael StoneCan delayed job starts impact material prices and profitability? Not if you gain a commitment first. It’s all about the sales process.
Beliefs That Limit Your Profit
By Michael StoneOwning and operating a construction business requires a strong will and self-direction, but those qualities can also lead you to hold on to beliefs that limit your profit.
Paying a Salesperson: Commission on Sales, not Profit
By Michael StoneIf you employ a salesperson to help you sell something, you need to pay them for their services. I am a firm believer in paying sales people by commission
Price Proposal Deadlines
By Michael StoneAll price proposals need a deadline because you never know when material and labor costs will increase rapidly.
Construction Sales: Make Time Count
By Michael StoneConstruction sales take time and your time is valuable. Avoid these common time-wasters when selling construction services.
Design Agreements and the Budget
By Michael StoneThe purpose of a design agreement is to get a commitment from your client to design the project so you don’t have to do the design for free. How do you keep the design within the budget?
Construction Websites that Generate Leads
By Michael StoneA construction website should be a lead generating asset. It doesn’t have to be expensive, but if it doesn’t generate leads it’s a waste of time and effort.
Lowball Pricing in Construction
By Michael StoneIt’s not unusual to find a contractor who sells by deliberately underpricing or underbidding jobs and making up the difference with change work orders.
Remodeling Sales: Setting the Budget
By Michael StoneA business owner in the UK asked a question that illustrates that remodeling sales challenges are the same regardless of your location.
You Have Better Things to Do than Estimate
By Michael StoneGetting a commitment from potential clients is critical if you want to save yourself a ton of time and work putting together an estimate that won’t go anywhere. You have better things to do with your time.
The Sales Call: Budget and Design
By Michael StoneBudget doesn’t need to be a major worry during the design and build of a project if you handle it properly during the sales call.
Four Diamonds of Communication
By Michael StoneSales is about communicating and interacting positively with others. Those skills make life easier in any delicate conversation.
Borrowing Jacks
By Michael StoneI recently had to face what I thought would be an uncomfortable personal conversation. I fussed all morning, then went to visit the person involved.
Clear Sales Communication; It’s Your Responsibility
By Michael StoneI want to share a recent phone conversation with a contractor concerning a problem they were having with a client.
Hiring a Salesperson
By Michael StoneI’m a firm believer in treating salespeople well. When they’re treated well, they’ll sell. When they sell, you win.
Let’s Discuss an Acceptable Hourly Rate . . .
By Michael StoneThis note is a painfully perfect example of why you shouldn’t provide details on your pricing.
Words from an Expert on Hiring Contractors
By Michael StoneA contractor sent us an online article written by a real estate investor with the purpose of educating you on “how to develop a fair relationship with your contractor.”
On Politely & Confidently Qualifying Leads
By Todd MiltonA guest article: How do you avoid going out on sales calls to look at jobs for folks who obviously do not qualify to purchase from your company?
Promoting Your Business: The County Fair
By Michael StoneIt’s summer, and that means community gatherings for people wanting to have fun. In our area, the main event is the county fair. I’m confident there is a similar event in your area.
Focusing On Price
By Michael Stone“The #1 reason I lose jobs is ‘your price is too high.’ What am I doing wrong?”
Spare Topics
By Michael StoneIt’s time to catch up on some spare topics I have lying around. These aren’t earth shaking but they can and will impact your bottom line.
Sales: Have Options Ready
By Michael StoneGive clients options when you quote the work they want done.
Transparency and Partnerships
By Michael StoneWhat do you do when your partner is listening to someone who knows nothing about construction, but still thinks they knows what’s best?
First Time Homeowner, Uncommunicative Builder
By Michael StoneWe’re aware that homeowners also visit our website. This letter is from a first-time homeowner who’s ready to buy, but his builder isn’t cooperating.
Design Agreement Fees
By Michael StoneThe last thing I want to do is cause a family problem, but apparently I did with one family.
Homeowner Advice: Some Misguided, Some Correct
By Michael StoneFlaky contractors make us all look bad. But not all advice given to homeowners to protect themselves from fraud is good advice.
Marketing Your Business
By Brian JavelineDon’t come up with excuses to not be marketing your business. Eventually you will be in the worst position of all, and that is when you say “I need quick help to get my phone to ring”.
You Can’t Ask Too Many Questions
By Michael StoneWhen something seems amiss, don’t stop asking questions. A contractor shares his experience on a recent sales call.
Give Them What They Need to Make a Decision
By Michael StoneClients are changing, and if you want to stay in the game and make something more than a living, you’ll need to change with them.
Protecting Design Work
By Michael StoneA contractor who has designed projects asked how to protect his design work.
Training an Architect
By Michael StoneA contractor we’ve known and worked with for many years sent us a note about his experience working with a new architect. Ideally, the architect would have been working with the contractor from the beginning so he could have educated the client as well.
Share Your Cards
By Michael StoneBusiness cards are a simple, inexpensive way to provide everyone you come in contact with the information they need to reach you.
Avoiding a Potential Pain in the Assets
By Michael StoneA good guy we know was recently working with a potential client when he ran into some concerns.
Canvassing: Connect with the Neighborhood
By Michael StoneOne of the more unpopular things I recommend is canvassing the neighborhood around your jobs. It’s unpopular because it’s misunderstood.
Avoiding Jobs That Don’t Fit
By Michael StoneIt’s smart to specialize on the work that makes you the most money. It’s even better if you know contractors who can pick up the leads outside your specialty.
Unrealistic Price Expectations
By Michael StoneIf they called you, doesn’t that mean they need or want the work done?
Family Fights
By Michael StoneThe topic is uncomfortable but if you’re involved in residential sales, you’ll see family disagreements. It helps to know what to do.
Make Every Possession Count
By Michael StoneMany contractors who write us are having a problem with their business, and in many cases, it’s because the contractor has lost focus on what’s important.
Clients Working on Their Job
By Michael StoneShould you let a client work on the job they’ve hired you and your company to build?
Doing What’s Right
By Michael StoneHow should you handle a mistake? What if it’s a mistake you made over a decade ago?
Breaking Down Price Detail
By Michael StoneSince the end goal for both the architect and the contractor is a satisfied client, how about working together from the beginning?
Lower Your Price, Gain Exposure
By Michael StoneShould you take every opportunity to increase exposure for your business?
Can They Find You?
By Michael StoneIf you’re a dependable, responsible construction-business owner, do potential clients in your area know you exist?
Getting Ahead
By Michael StoneAs we head into Memorial Day weekend, we want to share an upbeat note we received in April from a client.
Looking for a Deal
By Michael StoneIt’s amazing the things a potential client can think of to get you to lower your price.
Sales: Ask Questions and Get Answers
By Michael StoneThe one question too many salespeople stumble over is the budget for the job. They are worried that it looks bad to ask.
Transparency – Or Maybe Not
By Michael StoneIs transparency the way to go when selling? Be careful who you listen to.
A Reputation for Cleanliness
By Michael StoneEvery day we drive by a new home under construction. I don’t know how many people pass this new home every day but I would guess it’s in the thousands; the road is always busy.
Resolve Their Challenges, Make The Sale
By Michael StoneA survey outlines the challenges homeowners say they’re facing when they remodel or renovate their home. It’s valuable info, because it tells you what they need help with. It’s your job to show them you can provide that help.
Pricing Fears
By Michael StoneA recent Houzz survey confirmed what you need to know if you’re in sales; it’s not all about price.
Last Minute Requests Before Closing the Sale
By Michael StoneWhat do you do when a potential client waits until the proposal is together to request itemization on the project?
We Don’t Advertise
By Michael Stone“We don’t advertise” is well meaning mischief at its worst. It cuts your company off from a large pool of potential clients who are looking for a contractor to help them get their job built.
Objections Book
By Michael StoneAn objections book is a history of your sales calls. It includes everything you said and did, right or wrong. I have only met two or three others in my thirty-plus years of direct selling who took the time to compile a book, but each one became outstanding in their profession.
An Opinion on Itemized Estimates
By Michael StoneA building owner challenges our statement that contractors shouldn’t itemize their estimates.
Setting the Budget First
By Michael StoneIn our book, Profitable Sales, A Contractor’s Guide, we discuss the need to set the client’s budget for a project. One of our clients sent a note recently that explains why setting the budget up front is important.
Let Them Know What to Expect
By Michael StoneIf you’re doing service work, make sure your client knows what to expect before you start.
Website SEO Scams
By Brian JavelineI received a note from Michael Stone. He said, “You wouldn’t believe some of the stories I hear from contractors being approached by people claiming they can help with SEO or getting leads. I want to cover this in a newsletter.”
Generational Differences
By Michael StoneI’ve been reading advice in a few construction magazines on how to sell to millennials, and I don’t understand the fuss.
I Don’t Need Any Leads!
By Michael Stone“I have more work than I can do. I tell new leads to call me after the first of the year.”
Working for Big Box Stores
By Michael StoneA young guy asked if signing on with one of the big box stores was a good idea. He hasn’t discovered yet that getting a lot of work doesn’t mean you’ll make lots of money.
Hiring A Contractor: Truth vs. Myths
By Michael StoneSome advice on hiring a contractor is just plain wrong.
The One-Legged Sales Call: Find Out If They’re Serious
By Michael StoneOne-legged sales calls. Frankly, this is much to do over a problem with a fairly simple solution.
Careful What You Pay for a Lead
By Michael StoneI recently read an article reviewing a new lead-generating service, and it stated, “Our contractors only pay us a 5% referral fee, once they win the job.”
Bidding or Selling?
By Michael StoneAre you bidding on jobs, or are you selling them? There’s a difference.
Are Your Clients Thinking “So What?”
By Michael StoneOn a sales call, if you’re speaking and your potential client is thinking “so what?”, you’ve lost them.
When Your Client Sets the Price
By Michael StoneWhen your client wants a lower price, something has to change. It shouldn’t be just your price.
Thank You Notes
By Michael StoneI’m a strong proponent of thank you notes. We received a creative note from a contractor the other day.
Your Sales Presentation
By Michael StoneGiven how valuable leads are, once you get one, you need a sales procedure to help make the sale.
Finding a Trustworthy Contractor
By Michael StoneIf you’re trying to make a living in residential remodeling or specialty work, it’s important to know what the general public is being told about you.
Proprietary Business Information
By Michael StoneAn architect he knew asked him to meet with the owners of a proposed new home. As they were discussing the project, the architect asked our friend, in front of the clients, “What’s your overhead and profit percentage?”
What’s a Reasonable Advertising Budget?
By Michael StoneHow much should you spend on advertising? How much is too much?
Owners Supplying Their Own Materials
By Michael StoneShould you let a client furnish their own materials?
The Salesperson’s Real Job
By Michael StoneWhen I think about major influences on my sales training, I think of Tom Hopkins. He was an outstanding salesman who become a gifted sales trainer, and I still receive and read his newsletters.
Are They Helping or Hurting?
By Michael StoneI’m not convinced that Porch is interested in helping our industry. From what I’ve seen, I think they’re only positioning themselves to make money off contractors.
Referral Fees and Sales Commissions
By Michael StoneA referral fee is what you pay to the person who provides you a lead. A sales commission is what you pay a salesperson to close a sale.
Lead Generation Tactics
By Devon StoneBrian Javeline of MyOnlineToolbox presented a 24 minute webinar that introduced what you need to know to take charge of your own website marketing, and how to begin to put up your own defense against the Lead Generation companies.
Wasting Time: Red Flags on a Sales Call
By Michael StoneA potential client wanted to get a bid on some work at her home. Our coaching client was pretty sure the lead was dead, and wanted to know if she should have done anything differently to have made the sale.
Penciling a Salesperson
By Michael StoneIf salespeople know the business owner will back them up and pay them fairly, they’re motivated to produce profitable sales. If they aren’t motivated to make sales, the business is in trouble.
Client Outrage
By Michael StoneReal or fake outrage can be a client’s attempt to elicit an emotional response from you to get what they want. It often puts you in the position of questioning yourself and your company, not dealing with the subject at hand.
The Downside of Commission Sales
By Michael StoneI’ve long been an advocate for paying salespeople on straight commission. Not everyone agrees, not even all the experts, but in my experience straight commission is the best way to go.
They Want a Bid Today
By Michael StoneEvery once in a while, your phone will ring and the potential client on the other end will tell you they want a bid today. What should you do?
Final Payments, Emailed Quotes
By Michael StoneNever let your final payment exceed 2% of the sales price. And your contract should include a finance charge clause for payments not made on time.
Pay Salespeople Fairly: Commission Sales
By Michael StoneThere are lots of opinions on how to pay a salesperson. Your salespeople have to be able to make a good living and provide for their family.
What’s Your Specialty?
By Michael StoneIf you're one of the many contractors who start an advertising message with, "We specialize in . . . ", good for you. But if you follow that statement with a long laundry list of things you do, you're hurting your business.
Getting Involved with a Storm Chaser
By Michael StoneLast week, a contractor called to ask my opinion on getting involved with storm chasers that were in his area.
Getting Business as a Sub
By Michael StoneOne of the questions we’re asked most often is how a subcontractor can get jobs. How do you go about meeting general contractors and letting them know you’re available to build their jobs?
Let’s Not Talk About the Backlog
By Michael StoneA major mistake contractors make is to tell a client they can’t start the job for 3-4-5 months. “We are backlogged, can’t possibly start your job before then.”
Website Ideas for Contractors – 15 Website SEO Ideas
By Devon StoneIf you missed our webinar earlier this week with Brian Javeline of MyOnlineToolbox.com, 15 Website Lead Ideas in 20 Minutes, the recording is available here.
We Want To See Your Receipts
By Michael StoneWhat if you agreed on a price, now customer wants all receipts for material? Without a clearly written fixed price contract, it's a problem waiting to happen.
Where Do You Get Your Leads?
By Michael StoneA new business wants to market your construction business and provide leads. It'll also give homeowners ammunition making it harder to sell jobs. There’s an alternative.
Making Selections for Their Project
By Michael StoneIf you're a remodeling or new home contractor, how can you get clients to make their selections before you write the contract? Make it easy for your client.
What’s the Average Price of . . . ?
By Michael StoneWhat’s the average cost per square foot for a remodel? Average contractor markup? Average contractor fee? There is no average anything in construction, and here’s why.
It Isn’t Your Price. It’s You
By Michael StoneAddress their fears so they feel safe purchasing from you.
Hire Your Own Subs
By Michael StoneFrom time to time, you will go out to see a potential client about doing work for them and they’ll ask if they can choose their own subs for their job.
Insurance Repair Work
By Michael StoneA construction magazine said half of their subscribers were in the path of a hurricane. How many of those contractors are taking advantage of the potential new business?
Your Price is Too High
By Michael Stone“Your price is too high” means you haven’t done your job as a salesperson.
How to Start Your Website
By Devon StoneBuilding a website for your small business doesn’t have to be expensive, and it isn’t that complicated when you understand how it works.
Employees Can Generate Sales Leads
By Michael StoneEmployees, properly motivated, can generate a lot of new business for you.
Contract Cancellations
By Michael StoneCancellations happen, even with the best of salespeople. Clients have all kinds of reasons to cancel an agreement, and you need to be prepared.
Watermelons and Sales Leads
By Michael StoneYou might not think of watermelons, but one of our clever coaching clients shared a method he’s used to attract new leads for his business.
Marketing is just like planting seeds
By Michael StoneFor those who don’t understand the need for an ongoing marketing and advertising program for your business, let me try this analogy:
Transparency
By Michael StoneTransparency, as I understand it, is opening your books to your potential clients and showing them all the numbers pertaining to a job you are quoting.
Connecting with Potential Clients
By Michael StoneIf you aren’t getting a response to your advertising, either printed or on the web, you aren’t connecting with your potential clients. You must connect with them.
Missed Opportunities Cost Money
By Michael StoneI talk with contractors all the time who miss one opportunity after another and never seem to connect the cost of this miss.
A Bait and Switch Scam?
By Michael StoneLast weekend I passed a billboard on the side of the road. It loudly declared, "We will build your new home for $32 a square foot."
Pass those savings along?
By Michael StoneI read an article where the author talked about passing savings on to clients. This sounds well and good, but place it low on your priorities when putting a job together.
Learn to Paint Pictures
By Michael StoneConstruction (with the exception of new homes) is a service business. Your focus can't be on putting pieces together to build a job, it has to be on your clients.
The Job Price Isn’t Negotiable
By Michael StoneI wrote a Blog post for another company recently stating that I didn't think it very smart to negotiate the price of your work. A reader agreed with me and said:
Cleaning Up After a Low Bid Contractor
By Michael StoneThis potential client had a house built using the “lowest bid” contractor. The builder cut corners, leaving out little details like collar ties on the roof rafters.
Should Salespeople Have to Generate Leads?
By Michael StoneSomeone asked me recently if I thought a salesperson for a construction-related company should help provide leads, and how many. Yes, they should help provide leads.
Who Asks the Questions?
By Michael StoneMost contractors I talk to believe their neck of the woods is different. They believe their clients are more difficult to sell to than anywhere else in the country.
Newsletters for Marketing your Construction Business
By Michael StoneWe receive newsletters every week from construction-related companies around the US and Canada. We applaud all of you using a newsletter as a communication tool.
What Goes On a Business Card?
By Michael StoneOne of the topics was business cards, we spent several minutes reviewing the value of a business card and how it can help promote your company.
A Market in Holiday Lighting
By Michael StoneYou need to start planning your advertising to potential clients that you are available to install and take down Christmas lights and decorations.
Selling On Price Alone
By Michael StoneI was reminded again recently of the need for in-house training on what it takes to pay the bills in a construction related company.
Your Image in a Few Words
By Michael StoneHave you thought about the image you project? It's important to create an association between what you provide and what your potential client wants or needs.
Construction Business Advertising Example
By Michael StoneI don’t know much about their company, but I do know they understand communication with their customers and all those they do business with.
Free Estimates: when you don’t give your work away
By Michael StoneThe contractor presented a design agreement with a $3,000 fee to design the job, 1/2 of the fee would be credited back when a contract was signed for the final job.
Fixed Price Quotations or Itemization?
By Michael StoneI read an article telling general and specialty contractors to give itemized estimates. Oh joy. It talks about goodwill, trust, comparing estimates, and other tripe.
Upselling: Give Them Options
By Michael StoneIf you are in business, you are in sales. No rationalizing, you are in sales. If you don’t sell something at a profit, you are going to go away.
Charging for Estimates
By Michael StoneIf you’ve been in construction sales very long, you’ve met potential customers who ask for an estimate, but after a lot of work you learn they were just shopping.
Specialize in Construction – Stay Focused
By Michael StoneAfter working with a few hundred coaching clients, I believe that the key to profitability in construction is staying focused on doing a few things well.
Getting Paid for Quotes – Part 1
By Michael StoneDesign agreements, letters of intent – get paid for written quotes.
Does Your Construction Business Have a Website?
By Michael StoneToday websites are becoming a must as the customers who have money to spend are doing so by way of the Internet.