Handling A Backlog

MKamis

What do you tell a potential customer when they will have to wait 2, 3, or more months for their job to start? When I have a backlog, it's nice because I know I have plenty of work, however, new customers may be less willing to wait for me to start the job than my regulars are. I read threads all the time here about selling enough work to cover the year in advance, but how do you convince people to wait?

ruskent

You hire more help!! I am working on a design for a job that could set me and my 2 guys back 2-3 months. Its going to cost me alot of smaller jobs if i have to tell people they have to wait until mid summer to get stuff done they are booking in the spring.

But i will cross those bridges when i come to them.

RobertCDF

Sell them more on you. If they think about hiring someone else... You have not sold yourself well enough. You need to convince them that they would be fools to hire someone else. Also make them put 5-10% down to hold their spot.

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

marc

One of the questions I will ask a home owner that says they don't want to wait is............

Would you have the trust and confidence in a contractor that can start next week that you say you have in me, my company and the specs of the project?

Most good contractors are very busy and have a big backlog.

You need to sell yourself and your company. You need to know the answers to these 3 questions before presenting you contract.

What are they going to buy?
Why are they going to by from me?
Why are they going to buy today.

Having a big backlog just helps to creat a sense of urgency. If they don't but today, they may end up waiting even longer and the price sure as hell isn't going to go down. Everyone wants to do business with a busy contractor...............That's why he's busy.

__________________
Marc

thom

There are an awful lot of contractors who take forever to complete a job. They have many jobs going and can't keep up. The owners are pissed and looking for every nitpicky thing so they can get even.

Explain to the owner that they are asking the wrong question. Anyone can start tomorrow. The question to ask is "when can you finish?"

It isn't fun living in a construction zone. When we did additions we generally figured 6 weeks tops. On kitchens, I wouldn't start until the cabinets were available.

Mike Finley

This is what I always say:


"If you walked into an accountant's office on April 14th and he could do your taxes because he wasn't busy - - would you really want him to?"

MKamis

I guess part of the "problem" I have is that I have sold myself very well, but not the company. Everyone that hires me wants ME to be there because they have gotten a good referral from my other customers. I'm working on building up the business this year and adding at least one employee. I'll have to work on the standardization of how things are done in this company if I really want it to grow successfully. You guys have all been very helpful!

Boogga

[quote=thom;210813]There are an awful lot of contractors who take forever to complete a job. They have many jobs going and can't keep up. The owners are pissed and looking for every nitpicky thing so they can get even.

Explain to the owner that they are asking the wrong question. Anyone can start tomorrow. The question to ask is "when can you finish?"
quote]


Ditto, as above. The question.....When can you finish? Very Good Thom!

There are so many poofers out there that can start a job but not finish it.

__________________

"It's better to die on your feet than to live on your knees"

joasis

I just explain in the initial call that I appreciate the call, but we are really booked up. Most will wait, if you can give a reasonable time frame.

If I want to sell a job, I can also use this to my advantage. A guy called me about a large steel building....I wanted to do it, and we he didn't commit, I called him and said the steel company said prices are going up, and I have a slot I could work it in the schedule.....he jumped on it, simply because he thought I was giving him priority.

__________________

vinylguy

right now i'm backed logged and my customers don't even know it! we just keep plugging away but fortunitly i install windows so i can catch up quick my backlog came in febuary when we had below avg. temps for about 5 weeks straight noone wanted thier windows taken out at that time but my showroom kept filling up with windows. and then the snow came right behind the cold weather but the last 2 weeks we really started to catch up. also tho the cold weather made the people relize they needed windows so we even got busier. but thats ok. keep it coming i'll take it all if need be.

PressurePros

Perfect time to expand or raise prices.

__________________
Ken Fenner
Pressure Washing PA
Roof Cleaning Services PA

thom

When you sell, don't use "I" use "We". "We" makes you more and bigger than "I". "We" is a company, "I" is a person. "We" has longevity "I" is right now and recent past.

You can't brag about yourself without raising eyebrows. You can brag about your guys, your subs, your staff, making yourself look good but without sounding like an egomainac. That makes you look like part of something quality. It takes you out of the "working out of his pick-up" and puts you into a "Business".

Good luck.

(oh yea, In a previous iteration of myself many years ago I taught marketing)

RobertCDF

Funny... I have heard from many marketing people somewhat the opposite...
If you are a "we" more than 1, by all means say we.

IF you are NOT a "we" Then do not refer to yourself as a "we". It looks bad on you when you have been saying "we" "we" "we" and then just you shows up and does the entire project by yourself. They think "what happened to "we"?"

Now as far as I go... I find myslef refering to me as a "we" all the time even though it is just me.

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

ruskent

LOL yea. That always happened to me.

My dad has a service business with 1 employee. If he is booked up he always says "All our servicemen are busy today" Makes him sound much larger.

Teetorbilt

You can do as Pressure suggested or just sit back and pick and choose, my way. More money, same effort vs. more money, more effort.

__________________
You can't solve you're problems with the same level of thinking that created the problems.

Albert Einstein

Mud Master

I can't remember the last time I didn't have a backlog. I do mainly commercial shells and tenant fit-outs, and I have between 35-40 sitting on my backlog at any given time, and I try to complete between 15-20 a month, sometimes I get more done, sometimes I get less. It all depends on the sqft and complications.

To make someone want to wait to use you and your company means making them see what your company can do that the others can't. Let them see how many projects you've completed just like the one they are going to do. That's why it is great to always have pictures,video's, anything visual. I have to consistently turn away other potential builder/contractors/developers because the ones I have now keep me to busy to take on new work. Why? Because I have sold them on my services to the point that they don't want anyone else building thier stores,offices,retail,warhouses, and are willing to wait that extra month, rather than have someone else come in that isn't familiar with thier ways, and how they want things done, and does not deliver the final product that I can.

So selling your company is key. But selling your knowledge of the project at hand, priceless.

__________________