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.
Business Survival
By Michael StoneI often start the year with a reminder to check your business practices, and this year I think it’s more important than ever to get on top of and make sure you have your business in order.
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.
After the Sale; Pre-Job Layout
By Michael StoneThe pre-job conference or pre-job layout is when all the details get ironed out that can easily be forgotten. It’s when the job is handed from sales to production. After this meeting the production manager is in charge.
In Construction, Communicate the Details
By Michael StoneAre you giving your clients the information they need to be confident you’re building the job they want?
Sales Issues: Leaving Your Paperwork
By Michael StoneWhen a prospective client “wants to think about it,” should you leave your paperwork? What can you do to close the sale?
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?
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.
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.
About Your Exorbitant Markup . . .
By Michael StoneFrom 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 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?
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.
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.
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.
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.
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.
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?
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?
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.
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?
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.
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.
Alternatives to a Bad Deal
By Michael StoneSome business relationships turn out badly; with experience, you can identify and avoid them.
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.
Subs or Employees – Are Subs More Expensive?
By Michael StoneDoes subcontracting raise the price of the project?
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.
Bidding or Selling?
By Michael StoneAre you bidding on jobs, or are you selling them? There’s a difference.
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.
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.
Your Sales Presentation
By Michael StoneGiven how valuable leads are, once you get one, you need a sales procedure to help make the sale.
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.
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.
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.
Subcontractors or Employees?
By Michael StoneSometimes 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 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.
Race to the Bottom, or “How Low Can I Price This Job?”
By Michael StoneCutting 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.
How Much Should a Contractor Charge?
By Michael StoneMany 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 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.
I Have to Be Competitive!
By Michael StoneYou 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 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.
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.
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.
Price Your Services Fairly – Then Hold Your Ground
By Michael StoneShe 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 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.
Practicing What We Preach
By Michael StoneOne 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 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.
Cost-Plus, Cost+, Time and Materials, T & M
By Michael StoneA 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 StoneIf 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 1
By Michael StoneDesign agreements, letters of intent – get paid for written quotes.
Customer Looking for Quotes
By Michael StoneAs 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