Good Guy or Bad Guy? The choice is yours - ProCalc

Good Guy or Bad Guy? The choice is yours

Our industry unfairly forces builders to provide the hard truths clients often don’t want to hear. But you don’t have to be the bad guy. See how to help clients trust you – without the grief.

Historically, builders have always informed a project with the most accurate construction estimate.

After all, you build it.

But that’s created a dynamic where some in the industry leave it to the builder to somehow align scope and budget – after the design is complete.

This approach creates dramas for builders and clients at various stages throughout the project where the builder needs to educate the client.

Below are three scenarios that historically set you up as the bad guy.

But, if you play them the right way, you can help clients solve their problem – and win the job.

Bad Guy Scenario 1: Budget Reality

As we mentioned, most clients get a shock when you first give them a feasibility estimate.

In fact, about 70% of them get a real fright so changing this dynamic can revolutionise a builder’s conversion rate.

The first step is to help clients understand that this isn’t about you being greedy.

Construction pricing has risen roughly 50% in the last couple of years (depending on which state/locale you’re in) and you’re pricing is driven by forces you can’t control.

You can do this over a coffee and have a red pen handy to delete the items they’re prepared to lose from their scope.

To make this conversation easier, you can use ProCalc (in 15 mins) to generate an industry price for their project, so they understand it’s not you.

Then, if they freak out, you can ask if they’re open to striking out some items then re-costing in ProCalc (in 5 mins).

The moment they agree to that approach, they’ve become your client.

You handled it professionally and they trust you to land their project.

Run a Project Through ProCalc (free)

Bad Guy Scenario 2: The Sleazy Salesman or Trusted Expert?

From time-to-time, builders can get a bad rap, so you need to help client learn to trust you.

Paradoxically, our research shows, the best way to help clients build trust and treat you as an expert is to charge them for your very first meeting.

Charging them even a small fee will shift the clients thinking from you ‘selling  them’ to receiving advice from an expert.

That means you’re not the salesperson but a trusted expert who’s helping them solve their construction query.

This approach makes you the preferred builder, eliminates tyre kickers and builds trust.

If charging for the first meeting seems like BS or freaks you out, see how at How (and Why) to Charge for Pre-Build Engagement

Bad Guy Scenario 3: Variations – Unmanaged

How often do clients change their minds for your projects?

Just as the sun will rise tomorrow morning, so will clients request variations.

The problem isn’t the request.

Instead, it’s how you manage their request.

If you don’t immediately give them clear expectations about the process and cost to implement the variation, you’re in for a world of pain.

If their request comes during the build, give them figures quickly so they can then approve or reject the variation to avoid project delays.

If a client requests a change during the pre-build conversations, use ProCalc to set clear expectations about what impact the change has on cost. Run a Project Through ProCalc (free)

Doing this helps them understand that variations ALWAYS impact price and timeframe.

We believe it’s entirely unfair for builder to be portrayed as the bad guy.

Using these steps will help clients better understand the value you bring to their project – without the grief.

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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.