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.
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.”
Insurance Quotes – Getting Paid
By Michael StoneInsurance work can be good business, but it can also waste your time if the insurance company is playing the three bids game.
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.
3 Sales Copy Habits You Have To Stop Doing Today
By Patrick WalshMost home improvement sales copy is filled with nothing but generalities and platitudes. It gives no real reason why a prospect would want to take the next step.
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.
Stop Giving Free Estimates
By David LupbergerYou should stop providing free estimates. It’s called free consulting, and you won’t be successful giving away your time. (Guest Article from David Lupberger, Remodel Force)
Design Agreements Gone Awry
By Michael StoneWe discussed design agreements last week; today we’re going to look at them from another angle. The first step is setting the budget with the client.
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.
Getting the Commitment
By Michael StoneA contractor in Hawaii sent in a note asking about a few sales issues.
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.
Planning for Profit
By Michael StoneWe recommend setting goals every year, beginning the process about now. If making a profit is one of your goals, Michael outlines practices that will help.
Selling Your Services Online
By Michael StoneWe were recently asked about an online service designed to make it easier to handle sales calls.
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.
Strengthening Your Business
By Michael StoneI’ve been around the construction industry long enough to know that it isn’t always rosy. When a recession hits, construction is one of the early victims.
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.”
Alternatives to a Bad Deal
By Michael StoneSome business relationships turn out badly; with experience, you can identify and avoid them.
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.
Sales Issues: Leaving Your Paperwork
By Michael StoneGenerally speaking, when potential clients don’t want to make a commitment but want to keep your paperwork, they intend to shop it around.
Sales Issues: We’ll Be Getting Three Bids
By Michael StoneToo many homeowners believe they need three bids for their project. The intent, of course, is to compare proposals so they can make the best decision.
Sales Issues: We Want the Lowest Bid
By Michael StoneSome clients want the lowest bid for their project, and nothing else matters. It’s your job to try to educate them.
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.
Matchmaker, Matchmaker
By Michael StoneAnother day, another service that helps homeowners find a contractor.
Keep Your Head, Get Paid, Protect Yourself
By Michael StoneSometimes a potential client expects you to work for free. That’s not a smart route to take unless you have a lot of money in the bank and time on your hands.
Designing a Magnet
By Michael StoneThere are two steps to attracting leads. The first step is being known; the second step is making them interested enough to contact you.
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.
Practice Listening
By Michael StoneIt’s the beginning of the holiday season, and I’d like to talk about a topic that can change both your sales ratio and your family relationships.
Your Sales Presentation
By Michael StoneGiven how valuable leads are, once you get one, you need a sales procedure to help make the sale.
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?”
The Relationship Between Budget and Design
By Michael StoneOne problem contractors run into is dealing with clients who want to change the scope of the project after signing the design agreement, and not realizing how it might impact their budget.
Know Before You Quote
By Michael StoneIt’s cheaper to ask questions than pay for mistakes. A coaching client is trying to fix the problem created by an former salesperson’s expensive omission.
Can You Be Too Professional?
By Michael StoneCan you be too professional? A contractor shares the story of a sale that he was told he lost because he was dressed too professionally and responded to questions too confidently.
What’s a Reasonable Advertising Budget?
By Michael StoneHow much should you spend on advertising? How much is too much?
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.
Make Sales Happen
By Michael StoneA design agreement is nothing more than an agreement to work with the client to design their project. That’s not the final goal of a remodeling contractor; your business is about building projects.
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.
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.
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.
Leads are Gold
By Michael StoneToo many contractors care only about getting leads. They believe that if they get enough leads and can bid on enough jobs, they’ll be successful. That’s not the case.
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.”
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.
Making it Work, Profitably
By Michael StoneMy clients are constantly chiseling me down, everyone makes money on the jobs except me.
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.
Finding Opportunities
By Michael StoneBrainstorm business opportunities that your construction company could do, profitably, over the next twelve months.
Take Charge of Your Company Name
By Michael StoneClaim your business in local search sites and social media. Almost always free, only takes a minute, might bring in leads, and it will protect your name.
“I Work in a Competitive Market”
By Michael StoneDon’t worry about what “the other guy” is charging.
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..