Customer Wait Time

NickofTime

I'm a GC and do most of the work myself. I've been in the business since I was knee-high to a grasshopper. I learned most of my skills from my dad who owned his own business. I'm finding myself in a position where I have customers booked 6-8 months in advance where most of the time I was only booking weekly or monthly. I'm not complaining, it's nice to know you don't have to lose sleep trying to figure out where your next job is coming from. I'm baffled that customers are willing to wait so long to get their renos done. So after all this, what's my question?

Just wondering if anyone has customers that are willing to wait a long period of time to get work done?

RobertCDF

Thats a great sign. When you get to that point you can start charging more. Your have built a great name if they are willing to wait anymore than 5 months. One thing I would do for sure is get a deposit from all of them. That way they dont go and hire someone else and you call a week before you were going to start only to find out the project is done.

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Robert Shaw
Colorado Springs Custom Decks
Colorado Custom Decks
Custom Composite Decks

Mud Master

Absolutly. I have an group of builders/developers that I work for exclusivly, and am consistently so busy with them, I could not even entertain the thought of accepting work from another builder. I do 95% commercial and I do mainly shells and tenant fit-outs.

I have 30-45 fit-outs in my backlog at any given time, and I usually complete between 15-20 of them a month. When I take a shell it is usually around 10,000sf, all structrual steel and takes 4 guys about a month and a half to complete. So if my builder comes to me and says " I have (this many) fit-outs ready for you, give me a price". I say "sure Phil, but i'm working on a shell right now and I am proboly gonna be a month or two out". He says fine, he will work the production around ME. Why? Because over the years I have sold him on my production rate, customer service and finished product. Plus being with the builders/developers for so long, I know how they work, how they want things done, and thier companies all around. Also have to take into consideration that these developments(offices,retail stores,strip malls,outlets,medical facilites,warhouses,etc..) have a very quick turnover rate. They do not want things sitting for months at a time. But with proven methods and priceless delivery over years and years, they will. I usually close 9 out of ever 10 jobs. So if there are 120 fit outs in a given development, I will close between 100-110 of them. If I don't get all of them. Reasons I don't is sometimes they CAN'T wait, so they have my competitor come in a do a FEW just to keep things rolling til I can get in.

Would I like to get them all? Sure. Have I lost many due to a never-ending overbooked schedule? Absolutly.

But when you get to the point that you are that busy, you will lose jobs. And no matter how great the potential job is, or how much money it may revenue for you, or how big it may be. Never try to hault another job to start another, thinking you can get it all done. Focus on the task at hand, than move on. You will lose some. But providing that type of service to your customers(sticking to the job at hand) will show stability,commitment to your word to get the job done, and most importantly... will generate more winners than losers.

I've been in business 12 years now, and have been like this for about the last 4 years. I don't think I will ever see light at the end of the tunnel, or a slow period(knock on wood)..but all that tells me is that i'm doing SOMETHING right.

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Mud Master

And an added CONGRATS to you!! Whatever you are doing, your doing right, and do not change it!! As Robert said, that is a great sign.

I am the farthest from a marketing guru, and have never advertised my name to anyone anywhere other than a normal listing in the yellow pages. But, I know that when what your doing is selling, to stick with it. Maybe you can test the waters and raise prices a bit, but if you are happy with your generated revenue, and are getting plenty of work with it, i'd just stick with what your doing.

This business is an ever fluctuating industry, with plenty of twists and turns in between. But if it is nothing else, it is an adventure..and I wish you continued sucess in yours.

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Metrojoebarbs

Great stuff. Boy I wish you guys were set up in North Carolina

Mud Master

Which one of us?

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Metrojoebarbs

Actually you Mud. I dig the dedication and relationship you have built with your builder. These relationship qualities go along way when the going gets tuff on site

Mud Master

Yeah. It's been tough to really weed myself away from the competition. Especially when you are production building, Trying to keep things on schedule and accomadate every customer to the best of your ability isn't easy. There are over 850 companies that do what I do within an hour of me, plenty that do exactly as I do and work with builders they have established relationships with. But there are still MANY that will take whatever bid comes thier way..so to really separate yourself from them to the point that someone wants to use you exclusivly is a long,hard task.

As far as dedication to them, they know that I would do the same for them. I won't put off a job for Obrect-Phoniex Developers anymore than I would put off a job for CSG Commercial Builders. They know that they may have to wait for me, but that once I get to them, someone else will be waiting while I am with them. But that fact that they will wait is something I sometimes can still not fathom. I always expect to hear "sorry, we gave that job away", even though I know it will still be there for me.

Don't think this does not come at a price though. We work LONG hours, ALL the time, and I have had to devise a through management plan in order reach my estimated goal of fit-up completions. Sometimes I don't always make it, but I try to the best of my ability to do it.

I can't credit myself for half of my sucess though, had it not been for my wonderful group of guys. I was a 4 man crew up til this past summer, but it got to the point that I felt I was pushing my guys to much, and with me having to really focus on the business end now and be out of the field for a substantial amount of time compared to before, it was time to expand. So now I am an 8 man crew, 2 crews of 4..2 Foreman,4 Mechanics,2 Helpers. And after alot of thought,complication,and serious talks with some of my closest trade friends,and advisors..I have decided that it will make everything run smoother, and be more profitable in the end to both me and my clients, to expand again, to a 12 man crew. Three 4 man crews: One crew for the metal framing, one crew for the drywall/finishing, and one crew for acoustics.

This is not something I came to a decision on easily, as making big decisions like that are 50/50. but it is something that I feel will be the best fit for my company, given my situation.

So I am very thankful for the compliment, but it makes me look back and see all the hard ships it took to get here. And makes me have a little more compassion for guys trying to make it in this very cruel industry.

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dirt diggler

Joe Barb

I like developers too

hehehe

Mud Master

Hmm...Don't think I have delt with Joe Barb??

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dirt diggler

isn't that Metrojoebarb's name??

Joe Barb??


the golf guy???

alright, past bed time maybe???

Mud Master

oh lol..yeah I just saw that

Yeah it is getting pretty late. 1:58am EST here.

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Metrojoebarbs

I used to pull up on my job site every Friday at 4:00pm, in the summer heat, the ice melting from the back of my truck (I used to stack 4-5 concrete pier forms and pour the ice in)and cans of cold beer for all my contrators. I know you know about deadlines and I get crushed if things dont go right. I've always given guys a second chance. Sh!t I had a guy pour a 50ft wall with steel on the wrong side of the line (sure it started at the footing). What a nightmare. lol lol. What i'm trying to say is it took me a while to build trust with my contractors up here. I will sort of be starting over as I follow population flow. Every once in a while I'd blow a gasket but it was all in a day and my guys new it. I only hope things go as well south of the border. Do you have any contacts down in NC?

dirt diggler

i would be doing that (developing) if I wasn't doing what i do now


i think it's about the ballsiest thing to do on earth

contracting's got its risks ... but ...

Metrojoebarbs

DD,
Some of the most successful people on the earth are that way because they took a chance. It's not that hard. Just more research and money involved. There was a time when I would pull up on jobs with my 24' covered trailer and unload. And no, it wasn't a blue trailer.