How (& Why) to Charge for 1st Client Meetings
If you’re like most builders, you’re probably happy to charge for a detailed quote or preliminary works. Only problem is that this approach is leaving money on the table.
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If you’ve been reluctant to charge for meetings, your choice may have been driven by your real-life experiences as a builder. That is, you have a genuine fear that prospective clients might refuse to pay for your time, causing you to miss out on the job.
Or, other builders you know don’t charge so you feel you need to ‘match’ them.
From a builders’ perspective, these drivers are very real. But, they can also plant the seeds of future pain for the builder.
Why Charge For the First Client Meeting?
Free estimates teach clients that they don’t need to place any value on your time, despite the process eating up days or weeks in your calendar.
Unfortunately, the conversation becomes purely about price rather than the professionalism of your work.
Given a reliable estimate takes so much of your time, free meeting also hurt because they draw you away from paid work.
Add to that – you don’t yet even know if the client can afford their dreams!
Basically, a free estimate is the green light to start a painful race to the bottom.
Instead, charging for your time recognises the value you bring as an expert.
Done properly, charging for your 1st client meeting:
- Eliminates tyre kickers and idea thieves, saving you from chasing red herrings
- Positions you as a trusted expert – not a free information resource (or ‘just another builder’)
- Builds trust with ‘skin in the game’, helping clients to experience value
- Reduces competition – clients won’t ask for this information from another builder once they have it from you
- As a trusted expert, you’re the preferred builder should they go to competitive tender
Clients have some very specific questions they need answered when they first contact you. Packaging these ‘answers’ together, and charging for them, ensures clients get value from the beginning and you get paid for your expertise.
It also eliminates tyre kickers from your sales pipeline so you feel confident investing your time in the client’s project.
How to Charge for Your 1st Client Meeting
Clients need answers to five very specific questions when you first meet.
If you can answer these questions in a formatted 3-5 page report, you can charge for your time. See how in the Accelerate Your Estimating Process (Video) – no charge.
Here are the five questions they want you to answer:
- Concept Design – If the client doesn’t yet have a professionally drawn concept design, they need one before they (and you) can progress. Incorporating a friendly designer/architect into your early engagement make it easier for the client. It gives them a pathway forward and they’re happy to pay for it.
- Structural Assessment – If the project is a renovation or extension, take a ladder with you and spend 10 minutes checking roofing members to determine if the job can be done the way the client expects – they need to know.
- Site Assessment – Take the time to walk around the site with the client to understand datum points, drainage, access and general conditions. This is an opportunity for you to showcase your expertise and build a relationship with the client.
- Buildability – Can the design be built? Or, does it need some practical improvements? Your suggestions will show you’re an expert and that you genuinely care about the clients’ success.
- Can They Afford Their Dream Design? – In the early stages, clients just need an informed budget they can rely upon. This also helps you qualify them as ‘real clients’ versus tyre kickers. To do this is just 15 minutes at your desktop, book a free ProCalc trial
Early-stage client engagement is a delicate dance. You’re juggling your time, integrity and business value against a prospective client opportunity.
You owe it to yourself to eliminate time wasters.
To learn a proven technique for you to charge for early stage client engagement (estimates), watch the Accelerate Your Estimating Process (Video) – no charge.
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.
