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?

We Want Objections!

An appointment without objections is like a story with no plot, direction or ending. If the client shows no resistance throughout the buying process there is zero interest on their part towards the project. This is possibly the worst scenario one can face. You need to create excitement, enthusiasm, and interaction or the entire appointment will seem like a dream you are sleep walking through. When you wake up, you’ll be leaving through their door hearing “Thanks for your time, we’ll call you.” I don’t know about you, but I’d rather be awoken with cold water in my face!

Objections are a natural part of the buying process. A client’s objection often means one of two things. It can be a need for more information at that point of the presentation. There might be questions that the client has and they might not know how to ask the question so their concern comes out in the form of an objection. Understanding this, we recognize that the best way to overcome an objection is to address it before it arises. This is achieved by always giving a complete presentation. The presentation is designed to address the common questions and concerns that clients have each and every day. The other reason a client offers an objection is an attempt to slow down the direction the presentation is going in…a sale! The sale is the natural conclusion of the presentation in the buying process when a professional company is combined with its profile client. Often when a client realizes that the sale is inevitable they throw out an objection to slow down the speeding train, even if they intend to buy from you.

These two types of objections are called false objections. They make up approximately 80% of all the objections that we will encounter. Be aware of this and learn how to overcome ALL objections, true or false,

Let’s recap this. The client predominately brings up an objection because they want more information or they recognize they are about to buy from you. All I can say to that is “Bring on the objections!”

Now let’s quantify and qualify the TRUE objections. There are only FOUR true objections. Every phraseology of a true objection falls into one of these four:

1. “We need to think about it.”

2. “We are getting other estimates.”

3. “We need to check with our….father, cousin, insurance agent, financial planner….etc.”

4. “It is too much money.”

The first three true objections are subjective. Sometimes they can be a moving target. When dealing with these objections, the most effective technique is to get the final objection to be the money. Money is an objective, finite objection that can be overcome logically and systematically.

Knowledge is power. We now know that objections can be true or false objections. We understand that there are only four true objections. Any objection is a buying sign. Again, the best way to handle an objection is to address it before it comes up.

Remodeling Selling System Webinar

FOR IMMEDIATE RELEASE

Design Build Profit Presents Webinar for Remodeling Industry Leaders, Sales and Marketing Staff

TOMS RIVER, N.J., July xx, 2010 -- Remodeling company sales and marketing personnel, office managers, and CEOs who are looking for ways to sell more, at a faster pace, and with greater profit are invited to attend a free webinar from Design Build Profit (http://www.designbuildprofit.com). A provider of support services and selling systems for the construction industry, Design Build Profit (http://www.ereleases.com/pic/Design-Build-Profit.jpg) is dedicated to the mission of enhancing the performance, profitability and profile of remodeling companies in the United States.

During the “Remodeling Selling System” webinar, mentor Neil Parsons will demonstrate how the company’s customizable selling system can be used to improve sales, marketing, production, and office procedures. “We will be demonstrating some of the estimating, presenting, closing, production, and accounting features of our customizable remodeling selling system,” said Parsons. From the 12 steps that lead to a remodeling sale, to lead generation, to customized source methods, to project tracking systems, and team motivation, Parsons will explain how to speed up the sales cycle and boost desired results.

The free 90-minute webinar will be held Tuesday, August 17, 2010 from 10:30 a.m. to noon EDT. To register for the webinar, interested parties should visit http://tinyurl.com/DBPwebinar.

A Q-and-A session will follow Parsons' demonstration, and webinar attendees will also have the opportunity to schedule free consultations for their individual companies. Interested parties will also be able to receive discounts for the Design Build Profit custom selling system and services as well as free demo software.

A member of the National Association of the Remodeling Industry, Parsons has been in the remodeling industry since 1980. His experience includes working as a carpenter, remodeling business owner, and vice president of sales and marketing. He has appeared on HGTV's “Home Rules” and has guided two companies to "Remodeler of the Year.” His other awards include Best Marketing Program, Vinyl Siding Institute Awards of Distinction, Chrysalis Awards for Remodeling Excellence, Innovation in Construction Awards, and Qualified Remodeler Master Design Awards.

Parsons formulated Design Build Profit in 2008. The company specializes in customized strategies and tools for construction and remodeling companies, offering an array of systems that are designed and developed to create or enhance those companies’ sales and marketing programs. The work backgrounds of the Design Build Profit staff consist of marketing, in-home sales, accounting, production management and project design. Two key staff members are former remodeling sales representatives that have flourished under Parsons' systems and mentoring.

“I have always networked with other companies and individuals in the remodeling industry. Many over the years have asked for my advice, tips, and success strategies,” Parsons said. “Design Build Profit was the natural progression.” The number of individuals who can attend the “Remodeling Selling System” webinar will be restricted, so Parsons advises interested parties to register early.

For more information on Design Build Profit and its offerings, visit its website or become a Facebook fan at http://tinyurl.com/DBProfit.

Contact:

Design Build Profit, LLC

1358 Hooper Ave.

PMB #140

Toms River, NJ 08753

http://www.DesignBuildProfit.com

800-451-2066

732-993-6426 fax

info@DesignBuildProfit.com

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Design Build Profit Presents Webinar for Remodeling Industry Leaders, Sales and Marketing Staff

Design Build Profit Presents Webinar for Remodeling Industry Leaders, Sales and Marketing Staff