Ensure Client Satisfaction
Friday, July 14, 2006
Preparation is crucial for anyone tackling any project. The more you plan, the better equipped you’ll be to make sure it all comes together. One key to avoiding communication problems between your company and your client could be to include them in on the plan. A meeting between everyone involved, before work starts, can let both sides know what is to be expected and preclude arguments or resentment during and after the project.
It sounds like a lot of extra work to schedule a meeting before construction or remodeling begins but it can help prevent future headaches. Talking over all the plans and logistics can help the client understand your organizational ideas. You’ll keep the client informed on your strategies for staging, work hours and days, restroom accommodations, number of crew involved, cleanup, supplies, and more. Let the client know what your expectations are, as well. You might insist on some site prep from the client ahead of time – failure to communicate this can cause delays and arguments over the misunderstanding. The pre-meeting will eliminate the guesswork on your part. Suppose your supplies arrive. You unload them onto the driveway while the client preferred you use the side of the building. Ironing out the small details in advance will alleviate these problems.
The advance meeting concept is not for every company but communication will help give you what your business needs: client satisfaction. A happy past customer is a potential future customer as well as a resource for referrals to new customers.
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What is your Construction Company's Brand?
Branding is a big buzz word in the world of marketing. It’s about putting the image of your company out there to let the world know who you are and what you do. The problem most general contractors have is they may think they’re selling themselves as one thing and the client may be buying for a completely different reason. Service professionals can sell their specialties, their extensive hours or availability, and they can even have a catchy slogan on their business cards. But what they don’t know is that a former client referred them because of their no-haggling, lowest-price estimates or because of their ability to remain calm when problems arise.
It’s a great idea to talk to new and past clients to find out why they hired you. Finding out could mean more than just answering your question – it could be your brand. Sure, it might mean getting new business cards and updating your website, but it could also mean steady and consistent work for your company. Letting prospective clients know what your best at is more than boasting. It’s letting them know how your company will help them achieve what they want.
It is also important to be consistent with your branding. Whatever your advantage over the competition is, you need to exploit it at every turn. The benefit you offer your clients needs to be on everything from your company trucks to the answering machine message. It will hammer home your brand and allow others to sing your praises to future customers.
It’s a great idea to talk to new and past clients to find out why they hired you. Finding out could mean more than just answering your question – it could be your brand. Sure, it might mean getting new business cards and updating your website, but it could also mean steady and consistent work for your company. Letting prospective clients know what your best at is more than boasting. It’s letting them know how your company will help them achieve what they want.
It is also important to be consistent with your branding. Whatever your advantage over the competition is, you need to exploit it at every turn. The benefit you offer your clients needs to be on everything from your company trucks to the answering machine message. It will hammer home your brand and allow others to sing your praises to future customers.
Black Gold, Texas Tea
Rising gas prices have affected contractors across the country, which is not news to anyone. But the impact could be much greater than just spending more at the pump to fill up the company trucks. Because oil is used to make a wide variety of construction products, costs are going to go up. Oil is used in paint, plastics, asphalt, roofing materials and a host of other products you buy for your business. Many are predicting construction costs could rise anywhere from ten to fifteen percent. Instability and overall fears on crude oil costs could keep gas prices the same over the summer - or worse, they could continue to rise.
This could be tough news for what is considered to be the heart of the Remodeling and Construction season. This could affect many in the industry because the Federal Reserve continues to raise rates to stem inflation. Higher lending rates might prevent the average consumer from taking a loan for improvements or new construction. Also, the high cost of fuel dampens consumer spending behavior. For April 2006, retail sales were up only 0.5%, slower than expected. Economists say that, excluding gas sales, consumers didn't spend very much in April.
While March was a terrific month, spending on construction projects was at an all-time high, it could mean that belts will be tightening this summer. Keep this in mind when planning any spending increases for your business. Stay tuned to ConstructionDeal.com for new information on the economic trends that affect your company.
Make the Most of your Marketing Money
Do you track your marketing campaigns? You should. As a service professional, the effectiveness of your advertising dollar is crucial. It's not easy to track return on investment, but it could mean the difference between your success and failure of your business. Contractors spend 10 - 15 percent of their budget on marketing - direct mail, site signs, website, home shows, online lead services, etc. - and should stop any method not generating income (and spend more on methods that work.) Track the conversion rates: how much it costs to get in contact with the prospect, to set the appointment, and to sign the contract. Break it down to how much each job costs.First, identify how the client found you. If you use direct mail, include a special code on the mailer, or a different phone number or website address. Your TV ad could show a special offer or new phone number. If you use pay-per-click or banner ads, set up a special URL to track the source of the person visiting your site.
Next, start a tracking system. Create a prospect list of all the places you advertise. Your staff can keep the list on hand and ask how the future client found out about your company. It’s important to create a file (on paper or on computer) for each prospect, listing how they found you. You might not close the deal on this project (or they might have been seeking estimates only) and if they come back in the future, you’ll have a record of how they found you.
Have any questions for us? Call us at 866-663-4711 (Mon. - Fri. 9am-5pm PST). You can also post a comment here on the blog or email us (blog AT constructiondeal.com)
Green Construction
"Building Green" might seem like the latest fashionable fad but, believe it or not, the market for green housing and materials is exploding. Being known as a Green Builder could really increase your bottom line over the next decade. Why? As you have noticed in the concern over rising fuel costs, the coming trend will focus on conservation. As oil, gas, water, and electricity costs rise, many business and homeowners will demand buildings that conserve and cut energy costs. As new generations supplant the Baby Boomers, a new wave of tastes and ideals could really change the construction and remodeling industry.Need more evidence? More and more builders and developers are building green and switching over from the old ways; it's becoming obvious that there is more than just a little financial incentive causing this change. By starting now, you'll have an edge over your competition and you'll enhance your image. Many worry that using green materials will mean higher costs and lower margins. However, studies have shown that green products only raise first costs by 2 percent. In some cases, it's even lower than typical construction products. Where a few materials cost considerably more, you be able to make up the difference with a higher valuation of the finished product.
Building green could end up being more than just helping the environment; it could also help your company's bottom line.
Dealing with Lowballers
In the construction industry, there's no way to avoid competing with other service professionals. But it's never easy when you have to deal with certain individuals who lowball a project that you bid on. When you provide quality craftsmanship and top materials, disreputable companies can sweep in and low-ball your bid. Even the most well-to-do clients want to save money whenever they can and these lowballers invariably get the job.
How do you compete with lowballers? Those who charge less than fair market value claim that they survive on volume - which means they cut corners and use shoddy materials. To combat lowballers, it's important to talk with every property owner, face-to-face. Sharpen those listening skills and pay attention to what each person really wants out of their project. Once you understand what they want, find out how much they can truly spend. It's important to educate the homeowner or business owner about what the job will require, what you can do for them, how much it will cost, and how long it will take.
But you can also go beyond just your offering your services. Explain that their construction or remodeling job has 3 quality options. They can choose from – Best, Better, and Poor. Let your potential client know that they will, most likely, receive bids on all 3 ways from various contractors. Best and Better will include great craftsmanship (with the difference between Best and Better coming down to the quality of the materials used.) Next, inform the property owners that the Poor option will give them sloppy workmanship, with corners being cut every step of the weay, and inexpensive materials. Then, simply leave behind your business card. Tell them to call if they go with the "poor quality" bid so you can come inspect their job (for free) to ensure the safety of the homeowner.
Finally, make sure you follow up with them at a later date. If the property owner doesn't go with you for that job, they’ll certainly remember you for the next job.
How do you compete with lowballers? Those who charge less than fair market value claim that they survive on volume - which means they cut corners and use shoddy materials. To combat lowballers, it's important to talk with every property owner, face-to-face. Sharpen those listening skills and pay attention to what each person really wants out of their project. Once you understand what they want, find out how much they can truly spend. It's important to educate the homeowner or business owner about what the job will require, what you can do for them, how much it will cost, and how long it will take.
But you can also go beyond just your offering your services. Explain that their construction or remodeling job has 3 quality options. They can choose from – Best, Better, and Poor. Let your potential client know that they will, most likely, receive bids on all 3 ways from various contractors. Best and Better will include great craftsmanship (with the difference between Best and Better coming down to the quality of the materials used.) Next, inform the property owners that the Poor option will give them sloppy workmanship, with corners being cut every step of the weay, and inexpensive materials. Then, simply leave behind your business card. Tell them to call if they go with the "poor quality" bid so you can come inspect their job (for free) to ensure the safety of the homeowner.
Finally, make sure you follow up with them at a later date. If the property owner doesn't go with you for that job, they’ll certainly remember you for the next job.
To Sell or Not to Sell
Nearly every service professional in the construction industry hates the idea that he or she has to be a salesperson. Are you a contractor or a salesperson? The answer… Both! Honestly, your REAL job is to remodel, repair, build, or install. But the best way to keep doing what you're good at is to sell yourself and your company to future clients. You don't need to become a sales expert but you should make every lead count - it can be very expensive to acquire any job lead.Your business will succeed on your ability to maintain profitability. Ensuring profits means having enough business for the future. Presentation is a key component to making a sale, so invest in how your business comes across to clients. Update business cards to include your contact information and your company’s specialties. Include your website address and a company slogan - let potential clients know what sets you apart from your competitors. Let them know why they should choose your company for their project. A business card may get passed on to family, friends, or neighbors.
They always say that a picture is worth a thousand words. Anyone can give a potential client references that include a name and phone number. But to really sell yourself, to go above and beyond mere references – create a presentation photo album with "Before & After" photos and show it to clients. When they can see what your company is capable of, they'll have an easier time visualizing what you can do in their home.
Finally, no matter your schedule, make every effort to do what you say you'll do. If you promise to return a call, return it. If you promise an estimate, do so. If you say your company can complete the job by a certain date, hit that date (or explain reasons for not making the date well in advance.)
People always remember those that keep their word and they'll come back every time. These simple communication tools should be part of your marketing toolbox. Sell your abilities as professionally as possible - they will buy.
And send us some of those BEFORE & AFTER pictures!
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Welcome to the CD Contractor Blog!
Thursday, July 13, 2006
Welcome to the Contractor Update blog on ConstructionDeal.com! This blog is a bit different from the one available on the main site - this one is for our network of service professionals. We hope to provide you with information on how to use ConstructionDeal.com to expand your business, increase your revenue, and market your services.
Contractors are welcome to send us posts for this blog - submit tips & tricks of the trade, lessons learned, tool reviews, new rules or regulations you discover, or to describe a recent experience! Simply email us at blog@constructiondeal.com and we'll put your post up on the blog. We'll be using this page to give you advice, site updates, answer frequent minor questions, and more. We'll also be posting marketing, sales, and business tips to help you grow your company.
Thanks,
ConstructionDeal.com
866-663-4711
support@constructiondeal.com
Contractors are welcome to send us posts for this blog - submit tips & tricks of the trade, lessons learned, tool reviews, new rules or regulations you discover, or to describe a recent experience! Simply email us at blog@constructiondeal.com and we'll put your post up on the blog. We'll be using this page to give you advice, site updates, answer frequent minor questions, and more. We'll also be posting marketing, sales, and business tips to help you grow your company.
Thanks,
ConstructionDeal.com
866-663-4711
support@constructiondeal.com
