The more you discriminate between good and bad customers, the healthier your company will be. But how can you tell who's who?
Through conversations with other remodelers and trial and error, I've developed a set of questions to ask every potential customer you encounter.
If the answer to any of these questions is "No," then gracefully exit. If the answer is "Maybe," resolve the question before getting deeper into the relationship.
RELATED: Do You Have a Healthy Marketing Mindset?
1. Do the prospects respect your professional advice? Homeowners who think they have better answers than you force you to second-guess your judgments, reducing your effectiveness.
2. Do they allow you to control the remodeling process? An early sign of trouble is a prospect who repeatedly objects to your proposed meeting time or agenda.
3. Are they honest? Listen carefully. A boastful story about getting a good deal could really be about taking advantage of someone. A "wink" at the need for a permit may signal a general disregard for playing by the rules.
4. Have they lived through a remodeling project? If not, you need to go overboard communicating what the experience will be like (I sometimes describe it as having a suit tailored while you're still wearing it).
RELATED: Do You Have Your Act Together?
5. Are their expectations realistic? Beware of casual attitudes toward the amount of time or money involved, or about the kind of disruption the work will cause.
6. Do couples communicate well with each other and with you? Throw out some controversial topics—budget, finishes, or priorities, for example—and listen to the way they respond.
7. Are the clients committed to the scope of the project? If the project scope and client priorities are constantly shifting, that may be an indication of problems to come.
8. Can the customers make decisions and product selections in a timely manner? Give them some "homework" for the next meeting and see how conscientious they are about getting it done.
9. Are they emotionally stable? This is a tough one to flush out. If you have any doubts, slow the process down to get a truer read. Odd, unpredictable behavior may be a sign of instability.
10. Do they trust you? Test this by asking to take something with you —the as-built drawings or the plat, for example. If they balk, it could signal trouble ahead.
RELATED: 10 Winning Behaviors of a Great Manager
Final Notes
As an experiment, look back over last year's projects. My guess is that clients who did not allow you to make a profit also did not score well on this screening checklist.
Apply this list to all prospects, including personal referrals. We all jump on a personal referral, but we also tend to let down our guard, because we have a good relationship with the person making the referral. It's critical to separate an "easy" sale from a good client.
The final challenge is having the discipline to say no. Many of us find it difficult to turn down a job. Sometimes this is due to a tight business environment, but often it's because we see ourselves as remodelers not just of houses, but of people.
Try to integrate this objective screening system into your business, and your overall fitness will rise.
Comments (3)
Add new comment
Related Stories
How to Create a World-Class Remodeling Team
Great remodeling companies position themselves for the future with the right players
How to Increase Your Odds of Closing Remodeling Sales
Use these tips to hone your sales process and grow close ratio
Everyone Should Have a Number: KPIs for Your Design Build Team
Measuring key performance indicators guides your team to success while creating accountability and ownership
Becoming Profitable in Your Remodeling Niche
The 2023 NAHB Remodelers Chair shares insights and advice for contractors in our 2024 Thought Leader predictions series
Combat Remodeling Market Pullback with Increased Marketing
Mosby Building Arts' president shares his expert predictions and approaches to remodeling in 2024 for Pro Remodeler's Thought Leader predictions series
A Mindset of Serving Others
A research study shows surprising results about what makes us take ownership of our work.
4 Surprising Home Improvement Trends for 2024
Leaf Home CEO Jon Bostock offers insight on topics and trends that will impact the home improvement industry this year
4 Steps to Prep Your Business for Contraction
How a remodeling company plans ahead for the worst of times (and the best of times)
Filtering Clients
Submitted by Mary T (not verified) on Wed, 01/18/2023 - 16:13
Filtering Clients
Funny, as I read through each of your 10 items, a particular client came to mind. We're currently in a lawsuit with one client that hits nearly all the marks.
I appreciate your list as it calls to mind the nuances we should always be watching for.
10 Questions to Filter Clients
Submitted by Antoinette Fraser (not verified) on Wed, 07/19/2023 - 07:54
10 Questions to Filter Clients
11. Do they respect and follow your policies, proven process and contract terms?
If they ask you repeatedly to make exceptions or changes R. U. N.
Boat House Decks
Submitted by Rodney David Hetzel (not verified) on Sat, 08/05/2023 - 07:53
Boat House Decks
I have been trying to get pricing for four months now, several emails later and all I have are samples. I need pricing!