4 Tips for Successful Construction Companies
With the right business coaching, you can build a successful construction company regardless of what city or state you live in. There are a lot of topics a business coach can assist with including sales, operations, and accounting. Since sales come first in the equation of building successful construction companies, we are decided to give you 4 sales tips to start you on your journey of building successful construction companies.
1. People buy from people
2. In-Person Versus Virtual Meetings
3. Sales calls are meant to produce a sale.
4. Don’t allow price to be the deciding factor
What are the essential sales step you should be doing right now for your business? Right now, it is to understand and act on this one piece of knowledge: people buy from people they know and trust; this is especially true in remodeling. They are scared; they are hiring someone to work on their home which is their most significant asset and where they live and raise their family. A home renovation or custom home build is a personal and expensive purchase. You need to connect with your prospects and make sure they know you are a resource to take care of them and their property.
1. PEOPLE BUY FROM PEOPLE
If people buy from people – you need to get in front of as many people as you can. Start with email.
Go through every resource you have and collect the email address of past and current clients. Look in your accounting system, Facebook, and old emails. Find them.
Send an email checking in with everyone, but do not sell anything!
Your email should include:
- A Catchy Title – The subject line must be attention-grabbing
- The Body of Content– Something simple and, if possible relevant to your relationship. (ie. Ron, I want to drop you a note since we have not spoken since I ran into you at your son’s soccer game……
- Let them know you are available if you can be of any help.The purpose? Make the connection; if they reply in any way, make sure you do the same and keep the conversation going. Repeat this monthly. Eventually, a CRM system will be needed to speed things up, but it is great to start here.
2. IN-PERSON VERSUS VIRTUAL MEETINGS
Covid did a number on our industry because many consumers want to start the conversation about their home renovation with a virtual meeting now that they know how much more convenient that can be. If you cannot get access to meet with the homeowner at their property – Zoom works excellent; it is free and cuts you off at 40 min. Perfect, it gives you both a deadline to wrap up the free consultation.
Basically, you may need to be flexible about selling without going to the house for proper measurements. If you are flexible with virtual meetings, you will have a considerable advantage over everyone who cannot, which is most of your competition.
During your phone conversation – before the virtual meeting is scheduled:
Ask them for as much information as they can provide:
a. Do they have plans they can email you prior to the meeting?
b. Give them directions on how to take measurements and ask them to send those measurements to you prior to the phone call, if possible.
c. Discuss the mechanicals and ask them to take photos and videos to send to you prior to the virtual meeting
d. Don’t forget to ask them about their budget
Make them part of the process. Create a list of questions ready and send it over before the call, so they call to do their homework and send it all back to you a day before the scheduled video call.
∙ Schedule your video call after you have had adequate time to review and prepare a list of any questions you have.
During your virtual meeting:
- Engage them in conversation as to why they want to do this project. Let them talk! If you have a question or they pause, repeat the last three words they said, they will start talking again. You want them to speak and feel the project and feel your interest.
- Be prepared with a few questions and the few things that make you stand out from your competitors. Keep it short; your goal during the first consultation is really to gather information. Any information you provide should be in response to an inquiry the prospect has made. Most consumers do not want to hear you drone on with a sales pitch when you arrive at their home.
The FREE estimate should be provided at some point.
The objective is not to sell but to allow them the opportunity to purchase your services. You are not selling a kitchen or addition; you are providing construction services to create these things.
Ask the consumer, “Do you think this is something we could help you with….{insert their pain point}” if yes, then explain the pricing process the fee for pricing, and request their signature and credit card payment. (Be prepared to take payment)
Say little else at this point, no matter how hard it is not to talk. Let the price sit there in the universe after you have spoken it; the purchase decision is not yours.
If they say no, then thank them for the opportunity, etc., etc. If they do not respect your proposal to prepare a price, they don’t respect any of the services you are providing.
Practice, practice, practice: Your pitch to prepare a quote must flow and be natural and it must be presented with confidence. You are confident in your ability to perform the work, so this is the time to display that confidence.
Practice (roll-play) on video with your spouse or a friend.
The most significant benefit is you will now have a sales process that can be tweaked to perfection, and when the time comes, you will have a sales process in place for your first salesman.
3. SALES CALLS ARE MEANT TO PRODUCE A SALE!
Be prepared to leave the virtual meeting (or in-person meeting) with a commitment and a check.
The free estimate or free consultation should include a verbal estimate. If the prospect would like you to prepare a detailed cost analysis and a detailed scope of work – be prepared to present the consumer with a dollar commitment to prepare those documents. Then offer a % of that dollar commitment back if they sign a construction agreement – or give the entire amount back – you decide.
When you go on the sales call to provide a free estimate – your objective is to walk away with a commitment.
As a business, you provide two services no one else can, Construction pricing and Construction services; you do not work for free.
The industry does not permit you enough mark-up to work for free; even retail shops mark up enough to cover their showroom and inventory. Preparing a detailed estimate can cost $1,000 or more, if you do this 20x a year and have money to throw around then just send me the check and you will have more free time.
4. DON’T ALLOW PRICE TO BECOME THE DECIDING FACTOR
The only reason that closing a sales deal comes down to a price is that you allow it to go there, so don’t do that. Find out what your Unique Selling Proposition is and make sure your prospects know what that USP is. Focus on what it is that makes your company so great…. make a list of two or three things you do that is different from your competitors and highlight that in your marketing materials.
The price of the job is no more than the client is willing to pay. If the client wants to pay less, they may need to adjust their scope of work. Tip: Have a phrase in your repertoire to address this, such as: ‘You are in complete control of the cost of your project’ Find your own phrase so it is natural, and follow up with a question, “How much were you thinking of investing?”
This is a negotiation of sorts, so let them open with a number and if they don’t have one or seem reluctant to share, use your experience and give them a range: $20k-$40K then ask, “is that within the budget range you were thinking of investing?”.
Two things here, THIS IS THEIR FREE ESTIMATE I can’t emphasize that enough. Second, they will hear $20k, period so never give a low number that can’t be achieved in some way.
Successful Construction Companies will eventually hire a business coach, a mentor, or join a coaching organization such as Remodeler’s Advantage, Vistage, or a similar mastermind group. If you are a contractor working to build a successful construction company, I invite you to contact me for a free evaluation of your business. Business Blueprint Inc offers one-to-one and group coaching, classes, and mentorship to home builders, remodelers, and specialty trade contractors nationwide.