Architect versus our Design and Development process

Historically, architects’ work was primarily on new home construction, for developers, and commercial projects. Years ago, when existing homes needed to be remodeled or expanded, either professional plans were not required, or a basic sketch was supplied by the homeowner or contractor. Today, almost all residential remodeling projects involving structural alterations or additional space require detailed plans, sealed and certified, from a licensed architect. These plans must be submitted to the building department for approval. Then the work must be performed and inspected as detailed.


One option, in the remodeling process, is to start with an architect that will design your project for you. The first step in the process is to create concept drawings that depict the proposed remodeling project. These are general plans with little detail. This is typically presented to the client as a floor plan and a simple, exterior elevation view in black and white. There is not enough information provided in these concept drawings for a remodeler to provide an accurate and complete quote to complete the project. While budgets are discussed, most architects estimate the cost of "building" the project, not finishing it. Upon the client's approval, the architect adds the detail required for the final plans, also known as construction documents.

With these plans, a remodeler can create a detailed estimate from the information in the construction documents. Often, a professional, experienced remodeler will list additional costs typically not specified in the plans. These items can include heating and air conditioning, electrical service upgrades, work required to repair or update the existing areas to blend in with the newly remodeled areas (such as drywall, molding, flooring, siding, roofing), dust protection, painting, landscaping...etc. Other remodelers choose not to reference these items and merely treat them as "extras" when they arise. Based on changes and “extras”, the initial budget discussed can vary greatly from the actual investment. Factoring in all aspects to completely finish the project and the repair the affected surrounding areas 100%, making the space ready the family's use, the new and old budget can be as much as 25-100% apart. Because of this budget discrepancy, a large percentage of architects’ remodeling plans that are paid for by a homeowner never become a reality. These plans usually cost a homeowner thousands of dollars.

Another option is to start with a remodeler that is experienced and equipped to do design and development work for you before the project begins. In our Innovative process we start with an initial consultation that has a discussion of work scope, space, use, and a detailed estimate for the complete project including the “extras” often left out by others. During the next step, referred to as Tier-2, our staff creates a full-color computer aided design of the proposed floor plan with interior and exterior 3D elevation views. These are based upon the scope and budget discussed at the initial meeting. Also included is a detailed quote broken down by project phases and 50 task categories, plus/minus options, estimated material list, full scope of work outlined, 300+ previous clients (including phone # and address) as a list for reference, accurate price pledge, price match guarantee, and two alternate design options. At this meeting, the client reviews all and chooses what features they want and what they want changed. The suggested changes are priced immediately so the client can make a clear value judgment on each option and decision without surprises or budget over runs.

Once the Tier-2 design and budget is approved, the client advances to the Tier-3 level of development. During this step the design, colors, and selections are finalized. The client selects their allowance items from our trade partners’ showrooms with our overall management and coordination. After this Tier, we now have the agreement in place and then schedule an architect visit. The result will be architect's construction documents created from the previously agreed design and budget. Since the plans are derived from our floor plans and designs, the fees, already included in the budget, are a fraction of what they would be without our development work. This process guarantees a controlled budget. The design and budget are created in tandem and not one followed by the other. A great design that is over the homeowner's budget is just a great design. A great, interactively created custom-design within the budget soon becomes a beautiful reality to be enjoyed by the family for years.

Taking the stress out of home remodeling

A home remodeling project can be a stressful experience for the entire family...including the pets. From several post-project surveys it appears that unprofessionalism and the lack of planning and organization play a major factor in causes the stress.

Different home improvement firms try various methods to help alleviate the stress. However, many make promises that they cannot, or do not intend to, keep.

To us, it starts with portraying an accurate picture of what the client will face during remodeling. Then we detail our project policies of project management and communication, dust and floor protection, portable johns, daily clean up, and maid service. Then we explain our unique on-time, project completion guarantee with a $500 per day penalty.

Being homeowners and remodeling clients ourselves, we strive to make the experience as pleasant as possible before, during, and after construction. We often repeat one of client's quotes: "It was like a pregnancy. Many pleasant days, some exciting days, a few mornings I felt like throwing up, but the end result was definitely worth the experience." 

Dating Game - reprint from Remodeling Magazine

• From: Remodeling magazine September 2010 
• Posted on: September 10, 2010

Dating Game

Keep the client's excitement level high with speedy, accurate pricing.

By:

Stacey Freed

 

Credit: Kyle T. Webster

Typically, after a first meeting with a remodeler, a prospect talks to friends, goes online, gets inundated with advice and ideas, and by the time they meet the remodeler again for an estimate, things have shifted, especially ideas about budget.
Determined to create a system to shorten the time between “dates,” remodeler-turned-consultant Neil Parsons developed Design Build Profit software. Using the system, “the discussion that would happen in three weeks can happen on the initial meeting,” Parsons says. “The excitement level is still high, and the scope of work is defined and doesn’t drift.”

Easy and Speedy

Design Build Profit software includes 47 cost code categories with a detailed scope of work from initial demolition to post-project maid service. There are CAD designs, floor plans, elevations, and detailed itemized pricing for the entire project. It can be used for design/build remodeling or using existing architectural plans.
As for the sales aspect, someone with a general knowledge of remodeling can put together a job with a client that is no different, says Parsons, than “going up and down the aisle in the supermarket” to pick and choose components.
Mark Elia, owner of Mark of Excellence, in West Long Branch, N.J., has been using the system since its inception in 2006. “It makes things move more quickly,” he says. And Elia usually gets a retainer at the first meeting.

Accuracy Breeds Trust

The software’s line-item pricing is drawn from vendor and trade partner price lists. All that’s necessary to calculate project cost is linear- or square-footage information.
The program propagates everything needed, right down to light switches, circuits, hardwood flooring, windows, etc. “The formulas are based on the history of jobs produced and what the common choices are,” Parsons says.
The document created goes to production and stays with the client throughout the job. If a client wants two more recessed lights, the price is already determined.
“If someone is going to give me a price, I want it to be an accurate expression,” Parsons says, referring to client expectations. “You don’t get to the fun part unless you get past the money hurdle. We include everything. I don’t want to argue whether hardwood flooring was included.” More important, Parsons says, is that “once we get past [that] hurdle, we never argue or debate about money.”
—Stacey Freed, senior editor, REMODELING.
Read more about Neil Parsons’ estimating system.

more sales tales

Today we had a homeowner that our consultant quoted $20,000 for a bathroom remodeling project. The client balked, then stated he felt that the cost should be half that or about $10,000. 

Here is the ensuing dialog:

consultant: "What do you base that amount on?"

homeowner: "I had a quote from another contractor for $4,000."

consultant: "Would you be confident that this remodeler would do a good job, be reliable, and you would be satisfied with his work for the $4,000 cost?"

homeowner: "No."

consultant: "Would consider hiring him at all."

homeowner: "No."

consultant: "Then why does his quote qualify to be a measuring stick of what a quality bathroom remodeling project should be?"

homeowner: "I just figured if he was $4,000 you should be about $10,000...or less."

While that was the actual conversation, we would have enjoyed saying:

"Please hire that remodeler for the $4,000. Make sure to keep a journal and take photos and video throughout. That way we could pay you $2,000 for the rights to use your experience as a don't let this happen to you marketing campaign and presentation tool. Then you can brag to your friends that you got the job for half the remodeler's price. We're confident that your friends will undoubtedly tell you that at $2,000 for the investment for the result and experience that you terribly overpaid."

Or we could have asked:

"If there was a $4.00 maggot infested piece of meat and a $20.00 prime rib to choose from would you say the prime rib should be priced lower because of the rotted steak price?"

Oh, by the way, this morning, before the appointment, the homeowner purchased over $7,000 in fixtures. It certainly makes you wonder.

When does the sale actually occur?

At what part of the presentation does the sale actually occur? As far as I am concerned, the sale must occur in the rep's mind before they enter the meeting. The first person that must be sold in the sales process is the sales rep. If the sales rep does not have 100% confidence in their company, products, systems, service..etc selling to another is an uphill battle. If the sales rep would buy the product and/or service themselves , the sales process is merely an elaborate testimonial.


Armed with this confidence, part of the "pre-call preparation" should include the rep visualizing the handshake, signature, and check from the client they are about to meet. With this self-fulfilling prophecy in the rep's mind, the actual sale is foregone conclusion. The only change in the outcome occurs when the client out sells the rep or gains control of the presentation procedure and undermines it.


The following is an actual dialog from a long ago appointment that is embedded in my mine and remains a component of all our sales training:


at the initial rep-client greeting...


SS: I just what to let you know that I am in sales myself and whatever happens, I refuse to make decision and purchase anything today.


NP: That is fine and understandable. My intention today is to merely give you information and options.


two hours later as SS is filling out the check for the first payment...

SS: I have to ask, at what point during the presentation did you realize that I would buy from you tonight?


NP: At the moment that I started walking from my truck to your home. I did come here to NOT sell you something. Plus, any outcome is a decision. Hopefully the decision that is agreed upon is the easiest and obvious one that makes the most sense and is the most beneficial to all parties involved.


Today...


This same attitude and philosophy applies today whether you are selling a $500 item or a $500,000 home remodeling project. If you would like to know how this can apply to your business model, please contact me...I love to share!
NParsons@DesignBuildProfit.com 

what does "NO" really mean

Do you clarify the "NOs"? No...not now, not ever, not at this price... You should clarify what each party's next actions will be.

A.D. asks: Please explain! 

"NO" can mean different things at different times. Clarify "No to what exactly", find out what the client plans to do next in order to get their project built. Just accepting a general "NO" without detail and clarification is the same as a waiter accepting "Fine" after asking "How is everything". "NO" is often a request for more information or adjustments in the proposed arrangements. Always be prepared to ask follow up and probing questions as to leave no stone unturned.

Today's Remodeling Sales

Is your home remodeling sales presentation the same as it was five years ago? Chances are if it is exactly the same your results are less than those of five years ago. The difference in time time span is undoubtedly the economy. With those changes in the economy have come vast changes in the attitude and purchasing habits of homeowners. 


Clients no longer want to hear about your company's past accolades. They want to know "what's in it for me?" Also they are looking for deep discounts. Often unrealistic discounts, figuring remodelers have the same markups as sneaker manufacturers. 


Where does that leave us? Cut all our margins to a fatal level? I suggest you don't. Instead, refocus your presentation to be a more interactive, consultive selling process. Tailor each project to suit the needs of the family, home, and neighborhood. Be careful not to over design and price the newly remodeled home out of the local real estate market. Let the client be a part of all the potential value-added decisions. Help them decide whether to "move or improve", which is now a consideration on many more potential projects than previous years. 


Does the project, as discussed and agreed, create a solution for them, their family, and home?