5 Shockers Builders Can’t Say to Clients
We look at 5 things builders should stop saying to clients to help you better manage them (and make your business FAR more successful). Here’s how…
Taking control of your client conversations will reduce your stress and adds to your bottom line. Here are the five comments:
- Builder says: “I ‘Think’ We Can Build it For That…maybe”
Some builders will hold off giving the client budget reality until the very last moment. Whether they’re avoiding a tough conversation or hoping to win over the client through a series of conversations while they finalise requirements; it’s a bad idea.
That’s because a client’s maximum budget simply won’t change.
If they can afford it, they can afford it.
If they can’t, they can’t.
Holding off honest budget conversations robs you of valuable time you’re better off using to generate income or winning other clients.
Always make budget one of the first qualifiers when you initially engage with a client. Take a free ProCalc trial to see how this stops you wasting time on clients who can’t afford their dreams.
2. Builder says: “Yes. You Can Supply Taps, Tiles, Trades, etc”
Builders rely heavily on the margins, product functionality/quality and supplier relationships.
Letting a client supply items not only erodes your margins (which every builder charges to make a living); it also opens you to dispute/loss if products delivered to site are damaged or not fit for purpose.
If for some reason, you think it’s still a good idea to let clients supply items, make sure you apply a builder’s margin to their items within your total contract price. That way you’re at least remunerated fairly and can better manage product risks.
Sometimes a client will have a trade they want you to use. It might be their uncle who’s an electrician or their neighbour who’s a tiler.
The problem is that a subbie who doesn’t value future work from you won’t march to the beat of your drum. They’ll have conflicting time frames, agendas and projects that will only complicate your project delivery.
3. Builder says: “Sure. You Can live in the House While We Renovate it.”
This bad for you and the client for three reasons:
- Client safety
- It’s a false economy. If the client remains in the house while you work, you will have to pack up and pack down each day, including cleaning. That’s an extra 1-2 hours every day for which you need to charge.
- If clients are constantly on site, they’ll require greater management from you.
About the only time it makes sense to let a client stay is if you can isolate the work area from their living area using temporary, but secure, partitions.
4. Builder asks: “What’s Your Budget?”
If you’re a D & C builder this question makes sense because you can ask this question at the start then use it to inform their project design.
However, if the client already has plans drawn up, their budget or their opinion of the job’s value is almost irrelevant. That’s because they have no idea about residential construction costs – that’s your domain.
It’s a bit like a printer asking you what your budget is for 10,000 brochures that you’ve had graphically designed. You might have a wish for the price, but you’ve got no idea of the actual value. So, your printer takes the lead and tells you ASAP what the cost of the job will be.
You should do the same with your clients because you’re the construction expert.
The fastest way to provide an indicative budget is a ProCalc report which is based on Australian builders’ costs. Take a free ProCalc trial.
5. Builder says: “You Can’t Afford My Building Costs”
If a builder ever has to say this to a client, they’ve fatally missed several opportunities to (1) adjust the client pricing expectations, (2) disqualify the client and (3) save themselves loads of time by not ‘courting’ the client.
First and foremost, you should test the clients’ financial capability by providing an industry driven price point for their project. You can do this yourself or use the industry calculator, ProCalc, which does it in about 15-30 minutes from your desktop. Take a free ProCalc trial
Explaining to the client that the industry calculator says their project is worth “X” means that if they get a shock, you can then collaborate them to dial back their scope or stage their project. So, you’re not the bad guy; In fact, you’ll likely be the hero.
If they don’t want your help to reduce their costs, you’ve disqualified them from your pipeline as clients who can’t afford their dreams. That saves you weeks or months of wasted effort.
You Might Also Like:
- Builders, Get Your Pricing Right Every-time – No More Under-Quoting
- Transform Your Building Business in 43 Mins (webinar)
- How (& Why) to Charge for First Client Meetings
- Take a Free Trial of ProCalc
- Stop All Free Client Meetings – Charge Upfront
- Want more tips like these? Attend the Webinar: Work Smarter, Not Harder
Richard Armstrong is a former registered builder who recently interviewed hundreds of experienced Australian builders to identify how they best manage clients, budgets and profitability.
