Beliefs That Limit Your Profit

By Michael Stone

Owning 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.


Pay Salespeople Fairly: Commission Sales

By Michael Stone

There 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.


Paying a Salesperson: Commission on Sales, not Profit

By Michael Stone

If 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


The Downside of Commission Sales

By Michael Stone

I’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.


Price Proposal Deadlines

By Michael Stone

All price proposals need a deadline because you never know when material and labor costs will increase rapidly.


Construction Sales: Make Time Count

By Michael Stone

Construction sales take time and your time is valuable. Avoid these common time-wasters when selling construction services.


Design Agreements and the Budget

By Michael Stone

The 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?


Lowball Pricing in Construction

By Michael Stone

It’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 Stone

A 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 Stone

Getting 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 Stone

Budget 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 Stone

Sales is about communicating and interacting positively with others. Those skills make life easier in any delicate conversation.


Clear Sales Communication; It’s Your Responsibility

By Michael Stone

I want to share a recent phone conversation with a contractor concerning a problem they were having with a client.


About Your Exorbitant Markup . . .

By Michael Stone

From a contractor: “I am definitely going to do a better job in pre-selecting my clients after this one.”


Words from an Expert on Hiring Contractors

By Michael Stone

A 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 Milton

A 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?


Missing the Sale

By Michael Stone

Is there anything you can do about the sales you miss?


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 Stone

It’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 Stone

Give clients options when you quote the work they want done.


Transparency and Partnerships

By Michael Stone

What 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 Stone

We’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 Stone

The 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 Stone

Flaky contractors make us all look bad. But not all advice given to homeowners to protect themselves from fraud is good advice.


Protect Your Business – Get Paid

By Michael Stone

Avoid losing money by recognizing some of the games that building owners play to avoid paying.


You Can’t Ask Too Many Questions

By Michael Stone

When 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 Stone

Clients 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 Lupberger

You 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 Stone

We 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.


Training an Architect

By Michael Stone

A 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.


Avoiding a Potential Pain in the Assets

By Michael Stone

A good guy we know was recently working with a potential client when he ran into some concerns.


Avoiding Jobs That Don’t Fit

By Michael Stone

It’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 Stone

If they called you, doesn’t that mean they need or want the work done?


Family Fights

By Michael Stone

The 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 Stone

Many 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 Stone

Should you let a client work on the job they’ve hired you and your company to build?


Breaking Down Price Detail

By Michael Stone

Since the end goal for both the architect and the contractor is a satisfied client, how about working together from the beginning?


Looking for a Deal

By Michael Stone

It’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 Stone

The 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 Stone

Is transparency the way to go when selling? Be careful who you listen to.


Planning for Profit

By Michael Stone

We 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 Stone

We were recently asked about an online service designed to make it easier to handle sales calls.


Resolve Their Challenges, Make The Sale

By Michael Stone

A 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 Stone

A 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 Stone

What do you do when a potential client waits until the proposal is together to request itemization on the project?


Objections Book

By Michael Stone

An 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 Stone

A building owner challenges our statement that contractors shouldn’t itemize their estimates.


Setting the Budget First

By Michael Stone

In 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 Stone

I’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 Stone

If you’re doing service work, make sure your client knows what to expect before you start.


Generational Differences

By Michael Stone

I’ve been reading advice in a few construction magazines on how to sell to millennials, and I don’t understand the fuss.


Alternatives to a Bad Deal

By Michael Stone

Some business relationships turn out badly; with experience, you can identify and avoid them.


Sales Issues: Leaving Your Paperwork

By Michael Stone

Generally 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 Stone

Too 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 Stone

Some clients want the lowest bid for their project, and nothing else matters. It’s your job to try to educate them.


Subs or Employees – Are Subs More Expensive?

By Michael Stone

Does subcontracting raise the price of the project?


The One-Legged Sales Call: Find Out If They’re Serious

By Michael Stone

One-legged sales calls. Frankly, this is much to do over a problem with a fairly simple solution.


Bidding or Selling?

By Michael Stone

Are you bidding on jobs, or are you selling them? There’s a difference.


Free Estimates

By Michael Stone

What you do has value. Respect your time and your knowledge.


Keep Your Head, Get Paid, Protect Yourself

By Michael Stone

Sometimes 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.


Are Your Clients Thinking “So What?”

By Michael Stone

On 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 Stone

When your client wants a lower price, something has to change. It shouldn’t be just your price.


Your Sales Presentation

By Michael Stone

Given how valuable leads are, once you get one, you need a sales procedure to help make the sale.


Know Before You Quote

By Michael Stone

It’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 Stone

Can 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.


The Salesperson’s Real Job

By Michael Stone

When 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 Stone

A 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.


Referral Fees and Sales Commissions

By Michael Stone

A 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 Stone

A 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 Stone

If 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 Stone

Real 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 Stone

Every 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 Stone

Never 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.


Subcontractors or Employees?

By Michael Stone

Sometimes they request you use employees instead of subs, or work on a T&M basis. Clients don’t understand how the construction world works. It’s your job to educate them.


Let’s Not Talk About the Backlog

By Michael Stone

A 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 Stone

What 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.


Race to the Bottom, or “How Low Can I Price This Job?”

By Michael Stone

Cutting your price to get a job is a money losing approach. Over time, you won’t be making a profit and you’re only working yourself into debt.


Making it Work, Profitably

By Michael Stone

My clients are constantly chiseling me down, everyone makes money on the jobs except me.


How Much Should a Contractor Charge?

By Michael Stone

Many of our website visitors aren’t contractors, they’re clients looking for help with a Cost Plus project gone wrong, or wondering if their contractor is overcharging.


Making Selections for Their Project

By Michael Stone

If 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 Stone

What’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 Stone

Address their fears so they feel safe purchasing from you.


Hire Your Own Subs

By Michael Stone

From 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.


Ten Cardinal Sales Rules

By Michael Stone

Ten Cardinal Rules for residential construction sales.


I Have to Be Competitive!

By Michael Stone

You don’t have to be competitive. You have to be profitable. If you aren’t profitable, your business won’t last.


“I Work in a Competitive Market”

By Michael Stone

Don’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.


Contract Cancellations

By Michael Stone

Cancellations happen, even with the best of salespeople. Clients have all kinds of reasons to cancel an agreement, and you need to be prepared.


Pass those savings along?

By Michael Stone

I 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 Stone

Construction (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 Stone

I 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 Stone

This 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 Stone

Someone 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 Stone

Most 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.


Price Your Services Fairly – Then Hold Your Ground

By Michael Stone

She got a call from a guy about cleaning 300 feet of his driveway. When she told him her minimum trip charge ($300), she heard the famous, "Your rates are too high!"


Selling On Price Alone

By Michael Stone

I was reminded again recently of the need for in-house training on what it takes to pay the bills in a construction related company.


Practicing What We Preach

By Michael Stone

One of our goals is to improve the image …

Practicing What We Preach Read More »


Free Estimates: when you don’t give your work away

By Michael Stone

The 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 Stone

I 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

By Michael Stone

If 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 Stone

If 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.


Cost Plus, Cost+, Time and Materials, T & M

By Michael Stone

A coaching client was working with a potential customer who wanted a remodeling job on a cost plus basis instead of a fixed fee contract.


Estimated Time for a Construction Project

By Michael Stone

If your employees consistently take longer than you estimated, you need to change your method of estimating. The human body can only work so fast.


Getting Paid for Quotes – Part 2

By Michael Stone

Respect your time – get paid for the work you do.


Getting Paid for Quotes – Part 1

By Michael Stone

Design agreements, letters of intent – get paid for written quotes.


Proposals for Construction Work

By Michael Stone

Just a quick reminder. Be sure to put a limit on the length of time your proposals are valid. That time should be a maximum of 3 working days, no more.


Customer Looking for Quotes

By Michael Stone

As a relatively new contractor, how do I win over prospects that are “looking for quotes” – homeowners who are “getting three bids” for their construction project


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