Possibly one of the greatest challenges remodelers face today is the client who bases his or her decisions on price. A survey of 600 remodeling firms earlier this year reveals that competing on price alone is a problem for 82% of the respondents across the country. When faced with this type of client, 86% of the remodelers say they will fight for the business.
Competing on price is one element of the reality remodeler’s face, and they face this issue more often today than a few years ago. Combating this mind-set is a matter of getting the clients to think about anything and everything but price. Strategies include focusing discussions with your client about log term benefits of using a quality BIA contractor; ways to tweak the design to fit the budget; prioritizing must-haves and would-likes, then adjusting allowances; splitting the project into phases that are more easily digestible; showing the value of your business through awards you’ve won, certifications you have earned through the BIA and your firms commitment to your community; and third party testimonials from past clients and trade partners.
Another option is to simply walk away from the work. Some remodelers (11%) say this is the way they are dealing with price shoppers.
Finally, there’s the approach of not competing on the price in the first place. This can be accomplished by targeting households in the demographic areas less prone to price shopping, or engage in work with homeowners referred to you by past clients.
Providing free estimates is never free. How mush is your time worth? If you do the math, if it costs you a minimum of $100.00 per free estimate and you bid 10 per month you get 50% of the jobs you bid on, you have wasted $6,000.00 over the course of a year in unproductive time. If you are like so many contractors today that feel obligated to give away your time and design services to provide a free estimate. Stop.. you are professional remodelers, start demanding that your services be paid for.
Learn MoreI have been involved with the BIA Remodelers council for a few years and decided to get more involved last year since remodeling has become a staple of business for my company and for the building industry in general.
I am really excited about all of the great things the council has done this year.
1. We’ve had our regular Council meetings and have had some speakers give us some great info.
2. We’ve had city and county officials meet with us and work on ways to improve the permitting process and costs for the builders’ and consumers’ benefit.
3. We have sponsored great after-hours networking gatherings that have been hosted by some of our members like Contract Furnishings Mart, Hayes Cabinets, Globe Lighting, and Electronic Essentials, of the council where we have had as many as 200 people show up for food, fun and networking.
4. We spearheaded the Certified Lead Safe Renovator classes that were very beneficial to remodeling contractors.
5. We helped facilitate a Remodeled Homes Tour that helped the participating members get leads for new projects.
6. We hosted a Remodelers Hall at the Parade of Homes for the 2nd year, that was well attended.
Not being ones to rest on their laurels, the Council has many more things we are working on. We are looking to partner on some events with Portland’s Professional Remodelers Association. We are considering partnering on some community events with the Better Business Bureau and others. We are working on organizing more classes for Lead Renovators, working on new classes for the new asbestos regulations (we are getting hit on from the EPA), organizing an on line fundraiser for the Council, having a membership drive.
By joining the Remodelers Council, you are helping us continue to provide the foundation, positive impact and numerous ripple effects our building industry and remodelers portion of it continue to supply for our local economy. You would also get to spend time with a group of great people that are making all of this happen.
If you are interested in partnering with the council, please contact Garrett Delano.
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