Friday
Housing & Construction Reports
Economic reports from today:
The Baltimore Sun: "Home sellers aren't the only ones pained by the sharp housing market slowdown: So are people who build houses. U.S. homebuilders and residential specialty trade employers cut 21,200 jobs in May, June and July, usually the peak building months, according to the most recent preliminary numbers from the Labor Department. The statistics, adjusted for seasonal variations, also showed a significant job loss in March."
'Some of the larger builders have laid off as many as 30 percent of their total staff in this area,' said John Kortecamp, of the Home Builders Association of Maryland. (Builder) Chris Rachuba in Eldersburg has been getting calls from subcontractors hoping that he has more work for them, a turnaround from the days when there weren't enough subcontractors to go around. Suppliers that used to be too busy to bother with sales cold calls are descending on him, too."
The Yahoo Finance page: "Construction spending plunged by the largest amount in nearly five years, reflecting spreading weakness in the housing industry. It was the fourth consecutive decline in residential construction and the biggest drop since January 2002, providing dramatic evidence that the nation's five-year housing boom has come to an end.
Builder confidence has plunged this year as they have struggled with weakening demand in the face of rising mortgage rates. A record backlog of unsold homes has forced many builders to offer an array of incentives to reduce supplies.
Outside of housing, there continued to be areas of strength in construction as nonresidential private building activity edged up 0.3 percent to a record annual rate of $303.5 billion. Gains in July came in construction of office buildings, power plants and transportation facilities.
Public construction fell by 0.7 percent in July reflected a 1 percent decline in state and local building projects which was only partially offset by a 2.6 percent rise in federal construction activity."
The Baltimore Sun: "Home sellers aren't the only ones pained by the sharp housing market slowdown: So are people who build houses. U.S. homebuilders and residential specialty trade employers cut 21,200 jobs in May, June and July, usually the peak building months, according to the most recent preliminary numbers from the Labor Department. The statistics, adjusted for seasonal variations, also showed a significant job loss in March."
'Some of the larger builders have laid off as many as 30 percent of their total staff in this area,' said John Kortecamp, of the Home Builders Association of Maryland. (Builder) Chris Rachuba in Eldersburg has been getting calls from subcontractors hoping that he has more work for them, a turnaround from the days when there weren't enough subcontractors to go around. Suppliers that used to be too busy to bother with sales cold calls are descending on him, too."
The Yahoo Finance page: "Construction spending plunged by the largest amount in nearly five years, reflecting spreading weakness in the housing industry. It was the fourth consecutive decline in residential construction and the biggest drop since January 2002, providing dramatic evidence that the nation's five-year housing boom has come to an end.
Builder confidence has plunged this year as they have struggled with weakening demand in the face of rising mortgage rates. A record backlog of unsold homes has forced many builders to offer an array of incentives to reduce supplies.
Outside of housing, there continued to be areas of strength in construction as nonresidential private building activity edged up 0.3 percent to a record annual rate of $303.5 billion. Gains in July came in construction of office buildings, power plants and transportation facilities.
Public construction fell by 0.7 percent in July reflected a 1 percent decline in state and local building projects which was only partially offset by a 2.6 percent rise in federal construction activity."
TOP 7 "Sales" Killers
If you're an experienced contractor, some of these tips might seem like old news. The reason you're experienced is that you've been around the block and know what it takes to have your bid accepted. But not everyone can close every prospective client, so we're offering some things to avoid - we call 'em "Sales Killers" - when working on your next contract:1. Lack of a Professional Presentation: if you want people to believe you're an expert and listen when you're talking with them, you need to make sure you look the part. If you're organized, prepared, well-groomed, and use proper words, you'll make an impression.
2. Talking and Not Listening: they trust you know about your service. You'll sound just like every one else if you just tout your skills. If you listen to what they want, you'll figure out what they need and you'll "hit" on what they're truly looking to have done.
3. Not Building Good Rapport: if you rush right in with facts, figures, and lay down a contract, the prospective clients will jump back in fear. Show them your sparkling personality, calm their fears, and get to know them. They'll sign on the dotted line once they trust you.
4. Talking Too Much & for Too Long: know when to say when. Give them your pitch, let them know that you will be doing quality work, with quality materials, and give them a call to action. Don't say anything else. Sometimes, you can over-talk and talk yourself right out of the bid. Give them time to make a decision. More words from you will not increase their budget.
5. Not Closing the Sale: my absolute favorite close - "What other questions do you have that would prevent you from hiring my company today?" If they have another question, answer it. If they don't, pull out your pen...
6. Skipping the Details: it's your presentation. You've done it over and over. And over again. But they've never heard it before. If you go to fast, skip the true benefits to the prospective client, they won't trust you and buy what you're selling.
7. Not Qualifying them Early: use qualifying questions as early as you can in your pitch. You'll know if the prospective client is truly serious about hiring you or if they're just trying to get a competing bid against their regular contractor. It won't be one that got away if it was never there to begin with.
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