Stop Throwing Away Half Your Best Leads

Roughly only 30% of clients anticipate the likely budget of their project. But there’s another 35% of client prospects builders can tap to double their client base…

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Speaking with most builders, roughly 70% of clients get a shock when they first hear how much their project is going to cost.

Many builders, having identified that clients were short on budget, said they turned their back on these clients fearful that they’d only consume more of their limited time.

Historically, that’s been a real risk but this article shows you how to identify those within the 70% that are worth pursuing.

Think about it, based on our research, roughly:

• 30% of clients CAN afford their full scope of work
• 35% are dreamers who will never afford their project
• That leaves 35% of clients who can afford a reduced or staged scope of work.

That is, the last group – if managed properly – can double your client pool and your cash returns.

How to Double Your Pool of Eligible Clients

So, if you had an efficient method to cost a reduced scope for the last 35%, you can safely bring them back into your pipeline without the fear that they’re time wasters.

That means your pipeline would retain 65% of your enquiries – not just the 30% who can afford the original full scope.

Does a Reduced Scope Reduce Profits?

You might be thinking, that clients with reduced scopes will be less profitable.

But that should never be the case.

That’s because smaller jobs attract greater builders’ margins.

So, if a client has $500k to spend but a $800k project, re-cost a reduced scope with a slightly larger margin.

See best practice on margins and how to do this

Re-Scoping Client Jobs Efficiently

If client plans are beyond their reach, you can use ProCalc to re-cost their reduced scope in about 15 minutes online (book a free trial)

The key steps are:

1. Provide industry rates for the construction of their project. Preferably use 3^rd party figures, such as ProCalc, so the client understands they’re not your figures, but industry rates
2. If a client gets a shock, ask their budget and suggest you grab a coffee together
3. Over that coffee, sit side-by-side, pull out the red pen and identify items/rooms they can live without.
4. Re-cost the ‘new’ scope in ProCalc in 15 minutes to fit their budget – using industry rates

You Will Become Their Trusted Expert (& Preferred Builder)

Doing this with clients enables them to understand the costing process and how they can contribute to better budget outcomes.

It will position you as the expert builder who cares enough to explore the ‘what ifs’ to help them meet their budget.

That means less competition, greater trust, efficient engagement and an immediate opportunity to agree to progression of preliminary works or a detailed estimate.

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• 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