Ask Me Anything About Selling Home Improvement

 
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Old 04-05-2017, 04:11 PM   #61
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Re: Ask Me Anything About Selling Home Improvement


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Originally Posted by Inner10 View Post
You price everything in your car?
yep
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Old 04-05-2017, 04:35 PM   #62
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Re: Ask Me Anything About Selling Home Improvement


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yep
How do you price it out so fast?
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Old 04-05-2017, 05:13 PM   #63
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Re: Ask Me Anything About Selling Home Improvement


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How do you price it out so fast?
Get ready for it...
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Old 04-05-2017, 05:48 PM   #64
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Re: Ask Me Anything About Selling Home Improvement


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2- My business is based on honesty and intercity also. Sales is not about lying. But you say you wouldn't feel comfortable walking them down the path to saying yes... why not? ( I really want a good answer to this question)
I didn't say I would not feel comfortable walking them down the path to saying yes. I said I would not feel comfortable walking my customers down a specific psychological path. I sell them on what we do and how we do it, and never had an issue selling enough work to keep my business successfully operating at the level that I choose.

Quote:
3- The two biggest deals of my career were both closed on the first meeting. One was 89k and one was over 100. How long does it take you to design the kitchen and price it out? sounds like this is the process that needs to be more streamline. What your doing now is absolutely fine if its working for you but if you ever want to grow and hire sales reps then you have to close the deal on the first day.
Once a design agreement is signed and payment received, my in-house designer takes over. I have no desire to sit at their kitchen table or in my car and design their kitchen and prepare cost estimates. Depending on the size of the project or if we need to pull in an architect, there are usually a few more meetings to review, adjust and finalize the plans before we finalize the construction contract. It works for me and the business is the size I want it to be. I have no desire to have sales reps.

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Old 04-05-2017, 06:14 PM   #65
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Re: Ask Me Anything About Selling Home Improvement


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Get ready for it...
I spend a lot of time quoting jobs, I really want the secret to car quoting.
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Old 04-05-2017, 06:19 PM   #66
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Re: Ask Me Anything About Selling Home Improvement


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I spend a lot of time quoting jobs, I really want the secret to car quoting.
Well, I've never gone to my car to develop a quote (I do it in their house), but it can't be done without a...
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Old 04-06-2017, 12:50 AM   #67
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Re: Ask Me Anything About Selling Home Improvement


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Well, I've never gone to my car to develop a quote (I do it in their house), but it can't be done without a...
can't be done without a what?
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Old 04-06-2017, 12:55 AM   #68
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Re: Ask Me Anything About Selling Home Improvement


Here I'll ad some value to this thread. Here's a article I wrote on a popular sales forum that got a really good response. It was written for phone sales people but the same tactics apply for face to face home improvement sales.

---------------------------------------------------------------------

I'm going to go on a short rant about objection handling and closing over the phone. People ask me all the time how to handle certain objections they get when they ask for the close at the end of there presentation. The answer is YOU DON'T. You don't answer the objection. One of the biggest mistakes I see sales people make especially in B2C is addressing the objections head on.

One of the worst things you can do when your done with your presentation and ask for the close and the prospect says " I want to think about it" is to try to find out WHY they want to think about it. Don't answer the objection head on. When you do this you instantly break rapport and you start sounding pushy or " like a salesman". The correct technique is to deflect and run a rebuttal sequence that builds more value and trust. Your rebuttal sequence will essentially be a 2nd presentation.

What you need to understand is even if you give the best presentation ever people arent going to say yes right away no matter what. Time needs to pass before they can say yes. Thats why addressing there objections head on doesn't work because there not real there just stalls, when you address them you instantly break rapport and greatly reduce your chances of closing.

This brings me to another HUGE mistake that goes hand in hand with what I went over above. You can't front-load your benefits. Front loading is when you give all your best stuff in your first presentation and then have nothing more valuable to say after they say " i want to think about it". Here's how you do it.. when you give your first pitch always give the weakest benefits, keep it exciting but dry. Your not really trying to get them to say yes after this. You should EXPECT "NO". After they say no you transition into your 2nd presentation where you'll give your next most valuable benefits about your product/service, why they should trust you, and why your company is the best to work with.

Keep doing this over and over again, giving 2nd, 3rd, and even 4th presentations re-establishing those key points, asking for the order after each one, and transitioning through them in a smooth elegant way and you'll close every single prospect thats qualified.
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Old 04-06-2017, 08:24 AM   #69
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Re: Ask Me Anything About Selling Home Improvement


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can't be done without a what?
What is the one thing you need to be able to develop a quote on-site at a customers house (whether in your car or in the house) and that you can't perform that function without?
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Old 04-06-2017, 10:05 AM   #70
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Re: Ask Me Anything About Selling Home Improvement


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What is the one thing you need to be able to develop a quote on-site at a customers house (whether in your car or in the house) and that you can't perform that function without?
I can think of 3 things:

1. Plans
2. Vendor quotes
3. Subcontractor quotes

I am attaching a test project for you to estimate and prepare a contract at your leisure.

The prospective clients hate their current home and the project entails a complete gut and renovation of their home to match their aesthetic, including the exterior grilling porch, covered porch and garage with mechanic's pit and lift. In addition, all electrical and mechanical systems will need replacing and they are having an issue with water and drainage. I have attached photos for design inspiration, but the clients will need help in determining the final layout and design, selections and designing of all the home's systems.

What is your scope of work and estimate to completely remodel their home and make it the home of their dreams? Please provide a breakdown by area and MasterFormat 2014.

Thank you in advance.
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Last edited by NJ Contractor; 04-06-2017 at 10:15 AM.
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Old 04-06-2017, 10:26 AM   #71
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Re: Ask Me Anything About Selling Home Improvement


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What is the one thing you need to be able to develop a quote on-site at a customers house (whether in your car or in the house) and that you can't perform that function without?
your competitors bid, for the price match guarantee
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Old 04-06-2017, 11:26 AM   #72
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Re: Ask Me Anything About Selling Home Improvement


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Originally Posted by KAP View Post
What is the one thing you need to be able to develop a quote on-site at a customers house (whether in your car or in the house) and that you can't perform that function without?
Price list is the answer you're looking for I think, but unless you are highly specialized, how the heck do you develop one to cover every aspect of every job you might go look at?

I'm asking an honest question, because I spend almost as much time estimating as I do in the field.

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Old 04-06-2017, 12:01 PM   #73
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Re: Ask Me Anything About Selling Home Improvement


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Price list is the answer you're looking for I think,
Ding, ding, ding!...


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Originally Posted by mrcat View Post
but unless you are highly specialized, how the heck do you develop one to cover every aspect of every job you might go look at?

I'm asking an honest question, because I spend almost as much time estimating as I do in the field.
In developing a price list, you already have a lot of the information in your former proposals... it's just not formalized into a format that you can use to streamline the process... you have different formulae for most everything you do already which allow you develop your proposals now... everything from SF, LF, hourly rates, etc. and you use that to calculate your proposal...

The only difference is you're probably re-inventing the wheel each time you develop a proposal... the info is already there, you're just not utilizing it and having to start from scratch each time instead of developing line-items you plug in that auto-calculate the results... some guys use a spreadsheet, some use software, some use pen and paper, but they ALL are based off items / products / calculations commonly used in most projects... anything beyond the scope of these are to be expected to a certain degree and can be accounted for separately...
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Old 04-06-2017, 12:03 PM   #74
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Re: Ask Me Anything About Selling Home Improvement


Quote:
Originally Posted by NJ Contractor View Post
I can think of 3 things:

1. Plans
2. Vendor quotes
3. Subcontractor quotes

I am attaching a test project for you to estimate and prepare a contract at your leisure.

The prospective clients hate their current home and the project entails a complete gut and renovation of their home to match their aesthetic, including the exterior grilling porch, covered porch and garage with mechanic's pit and lift. In addition, all electrical and mechanical systems will need replacing and they are having an issue with water and drainage. I have attached photos for design inspiration, but the clients will need help in determining the final layout and design, selections and designing of all the home's systems.

What is your scope of work and estimate to completely remodel their home and make it the home of their dreams? Please provide a breakdown by area and MasterFormat 2014.

Thank you in advance.
While I understand your intent, there's not enough information provided to develop pricing on this...
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Old 04-06-2017, 12:22 PM   #75
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Re: Ask Me Anything About Selling Home Improvement


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While I understand your intent, there's not enough information provided to develop pricing on this...
My point is that not every project can be closed on the first meeting, particularly the larger more complicated ones. The designing and estimating should be a source of revenue as well as the renovation itself.
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Old 04-06-2017, 05:02 PM   #76
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Re: Ask Me Anything About Selling Home Improvement


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My point is that not every project can be closed on the first meeting, particularly the larger more complicated ones. The designing and estimating should be a source of revenue as well as the renovation itself.
I never said that every project can be closed on the first meeting... if you're tracking your presentation/close ratio, the designing and estimating revenue can also be accounted for to an extent in your overhead, and is not an either / or scenario...

Many ways to skin a cat in our industry... even though there are always exceptions to a rule the majority of work done in resi can be closed on the first night if you're set up for it and an integral part to it is having a price list... that's not to say we close every deal on the first night...
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Old 04-06-2017, 06:38 PM   #77
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Re: Ask Me Anything About Selling Home Improvement


The majority of work I would think i would want would not be able to be priced with a price list.
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Old 04-06-2017, 06:40 PM   #78
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Re: Ask Me Anything About Selling Home Improvement


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Well, I've never gone to my car to develop a quote (I do it in their house), but it can't be done without a...
A landscaper pal of mine used to ride around with a printer , goto his truck and come back with an estimate.
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Old 04-06-2017, 07:51 PM   #79
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Re: Ask Me Anything About Selling Home Improvement


Quote:
Originally Posted by NJ Contractor View Post
I can think of 3 things:

1. Plans
2. Vendor quotes
3. Subcontractor quotes

I am attaching a test project for you to estimate and prepare a contract at your leisure.

The prospective clients hate their current home and the project entails a complete gut and renovation of their home to match their aesthetic, including the exterior grilling porch, covered porch and garage with mechanic's pit and lift. In addition, all electrical and mechanical systems will need replacing and they are having an issue with water and drainage. I have attached photos for design inspiration, but the clients will need help in determining the final layout and design, selections and designing of all the home's systems.

What is your scope of work and estimate to completely remodel their home and make it the home of their dreams? Please provide a breakdown by area and MasterFormat 2014.

Thank you in advance.
Thank you for this challenge to this person.

Preparing an accurate quote where both parties benefit takes more than a spreadsheet, or I must need a better car. This is a week long endeavor with multiple communications at best.

If you are moving walls in a kitchen, are you trained on engineering loads and can you even spot a load bearing wall? If they are going to update appliances and need larger circuits, do you have a list of their appliances and pull specs on what needs to be changed and updated? Do you lay out the lighting and switching zones as well as receptacles on the spot to comply with the NEC and local amendments? Do you look for undersized drains? Do you design and finalize cabinetry style, design, wood species, finishes, and accessories? Do you make recommendations and include appliances? Do you evaluate the cfm value of the vent hood to see if make up air is required? Do you check into the local AHJ to see what the permit costs? Do you go over flooring selections? Do you price any tile backsplash? Do go over low voltage under and in cabinet lighting? Do you look at where to break paint lines from one room to another and what is and is not included? Do you evaluate any HVAC returns and supplies that need to be rerouted? Do you include lighting design and luminaires? Do you evaluate what upgrades might be required when pulling a permit from the AHJ? .......

Or do you just throw them a low price and worry about change orders later after you collect your commission?

Don't answer the rant I typed above, but please show us the way you do this with the example NJ Contractor has provided above in post #70.

I'd love to find a way around all of the examples I provided and do this in my vehicle from the driveway.

We're all ears.
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Old 04-06-2017, 08:33 PM   #80
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Re: Ask Me Anything About Selling Home Improvement


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Thank you for this challenge to this person.

Preparing an accurate quote where both parties benefit takes more than a spreadsheet, or I must need a better car. This is a week long endeavor with multiple communications at best.

If you are moving walls in a kitchen, are you trained on engineering loads and can you even spot a load bearing wall? If they are going to update appliances and need larger circuits, do you have a list of their appliances and pull specs on what needs to be changed and updated? Do you lay out the lighting and switching zones as well as receptacles on the spot to comply with the NEC and local amendments? Do you look for undersized drains? Do you design and finalize cabinetry style, design, wood species, finishes, and accessories? Do you make recommendations and include appliances? Do you evaluate the cfm value of the vent hood to see if make up air is required? Do you check into the local AHJ to see what the permit costs? Do you go over flooring selections? Do you price any tile backsplash? Do go over low voltage under and in cabinet lighting? Do you look at where to break paint lines from one room to another and what is and is not included? Do you evaluate any HVAC returns and supplies that need to be rerouted? Do you include lighting design and luminaires? Do you evaluate what upgrades might be required when pulling a permit from the AHJ? .......

Or do you just throw them a low price and worry about change orders later after you collect your commission?

Don't answer the rant I typed above, but please show us the way you do this with the example NJ Contractor has provided above in post #70.

I'd love to find a way around all of the examples I provided and do this in my vehicle from the driveway.

We're all ears.
I don't do quote's in my car... you're confusing me with Dean Craig who does that... I work in the home...

As I mentioned to NJ Contractor, there is not enough info in his post to price it out...

As to your specs you listed in your hypothetical kitchen, we work with a price list that encompasses 90-95% of everything needed to secure the customer and remove them from the market... As I've mentioned previously in other threads, our subs pricing is incorporated into our pricing schedule, and for things that go beyond that scope we tell the customer that will be quoted as a separate item, but that's no reason to hold up signing.... We don't sell appliances but do discuss what their plan for them is as it relates to them as in most cases they already have an idea of what they are thinking of from friends or families recently remodeled homes, magazines, the internet and home improvement shows (where else do you think they get the ideas from?)... no matter what they choose, that certainly doesn't mean the plan cannot be changed... there are certain things that always need to be addressed on remodels and are just par for the course(GFCI's, separate circuit for range/microhood/dishwasher, etc.)... sometimes this may require updating the service, which would be a separate item as outlined above...

As to particulars, you're operating off the erroneous assumption that EVERY decision not only has to made that night but that it can't be changed... as one example, we provide installation pricing for things like backsplashes but the actual tile, we let our customers pick out what they want at a later date from our supply house, and we get it for them at our discount (our profit is already built in on the project)... if we waited to sign a deal based on a customer deciding what tile they wanted, we'd be spending a "week endeavor" on it and not have anything to show for it except wasted time...

Cabinet specs (we can do whatever they want), styles, colors, finishes are all zero'd in that first night with samples (we carry the most popular choices on the market, but they are not limited to those choices)... as are countertops, lighting, flooring, etc. we meet up with the client a week later to provide computer drawings of their choices and finalize design and options... fabrication doesn't begin until everything is finalized... Because of variants from town to town, our contract states the customer is responsible for all inspections costs, but because we work in many of the same towns we provide them with a range of what they can expect...

The idea is to remove them from the market, so while others are spending a week endeavor pricing things out, we've already signed the deal... most people already have an idea of what colors, cab designs, tops, etc. they are looking for before you even show up and those that don't, there are various ways to zero in on their preferences which comes from asking the same questions over and over again over the years (you have to get them there somehow anyway right?)...

Keep in mind that just because you are not setup to do it, does not mean others are not... been pricing and closing the same night for decades and it's all starts with a price list... but it does with you as well... you apparently just choose to re-create the wheel each time you do it and just don't recognize it which may be why it's hard for you to think it can be done... you're used to doing it a certain way, and if that works for you, so be it...

I'm sure the more questions you ask, Dean Craig or myself and others can answer or share different perspectives on how to close on the first night, but unless you are actually interested in learning another way and open to it, a closed mind is rarely changed...

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