flexiblefullpage - default
Currently Reading

3 Signs It’s Time to Turn Away a Client

Advertisement
billboard -

3 Signs It’s Time to Turn Away a Client

Taking on the wrong remodeling job can hurt your profits and company morale. But how do you know when a project isn’t a good fit?


By By Botond Laszlo March 15, 2019
know when to say no to a remodeling client
This article first appeared in the March 2019 issue of Pro Remodeler.

You want to push the envelope and take on projects that grow your business, but not every job fits the bill. Saying “yes” to the wrong ones can hurt your bottom line. There are three major signs that you should say “no” to a project:

When Personalities and Attitudes Clash

We use a prequalifying questionnaire to guide the conversation with potential clients and determine if it’s a good fit. We want discussions to feel natural, but having preset questions helps make sure all the boxes get checked. Some questions include:

1] What’s the motivation for your project? Why now?

2] Are you speaking with any other contractors? Where are you in that process?

3] Have you remodeled before? What was that experience like, and why aren’t you using the same contractor again?

4] Was there something that stood out about us that led you to reach out?

We once took on a kitchen remodel where I met with only the wife before agreeing to the project. She assured me her husband wouldn’t be involved, but a week into the project, he was there, micromanaging my team. It hurt team morale. This project comes up from time to time as a reminder to stick to our process and make sure we can work well with all parties. Had the husband answered our questionnaire, it would have quickly become obvious that it wasn’t a fit. 

When the Budget Can’t Be Reconciled

Using the questionnaire as part of every initial client meeting also helps both sides figure out if the customer’s budget and our company goals align.

When saying “no,” be upfront. Let the customer know that based on your conversations, you won’t be able to deliver the project and experience they deserve.

We take on a wide variety of projects, priced from $25K to $700K-plus, with an average of $170K. Often, it’s less about the minimum or maximum, but if we find that a customer’s budget and our ability to make a profit don’t coincide, we politely decline the project.

When the Project Will Hurt Your Workflow

Timing is critical. Depending on the scope, we’re equipped to take on three or four projects at a time and still provide the same high-caliber service to each customer. We closely monitor the overlapping schedules each day to ensure that nothing impacts our production timeline. If taking on a new project will stretch labor too thin, we decline and give them a rough timeline of when we may be able to accommodate their project.

When saying “no,” be upfront. Let the customer know that based on your conversations, you won’t be able to deliver the project and experience they deserve. It’s not easy, but people respect you when you are honest with them. If we decide the scope of work is too small for our company or is outside our expertise, we refer them to another better-suited business, if we have one in mind. If we don’t, we direct them to the NARI website


written by

Botond Laszlo

Botond Laszlo is the owner and president of Dallas-based Marvelous Home Makeovers and past president of NARI North Texas.


Add new comment

Plain text

  • No HTML tags allowed.
  • Web page addresses and email addresses turn into links automatically.
  • Lines and paragraphs break automatically.
  • CAPTCHA

    This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.

Related Stories

Indicators of a Softening Market and How to Prepare

Market conditions could be changing, but don't panic. Richardson shares ways to stay on top of market conditions and how to prepare for any potential softening down the road.

Estimating Three Ways

Three remodelers reveal how they estimate a project

Grow Your Business Through Collaboration with Remodeling Peers

Remodeling Mastery Forums offers a unique business opportuniy for remodelers

Why We Hired an In-House Estimator

Bringing an estimator into your remodeling company creates sweeping benefits.

5 Tips on Setting up a Collection System

Construction lawyer Thomas Croessmann walks contractors through 5 tips on setting up a system for collecting payments from clients.

Remodeling Market Predictions: 2022

A Pro Remodeler Thought Leader reveals what he sees happening in 2022

What Profit Margin Should Specialty Contractors Aim For?

The problem with hoping to break even with a meager profit percentage is that it sets precedence. There’s no goal in mind, so there will be no goal to drive a team toward.

Should Remodelers Worry About a Homeowner's FICO Score?

Do FICO scores tell a homeowner's entire financial story? James Waite of Hearth weighs in on what home improvement pros should focus on when…

West Shore Home Implements $15 Minimum Wage

Home improvement juggernaut West Shore Home's new company-wide base wage doubles the legal minimum in nearly every state it operates

New Year, New PPP

Experts explain details of the second draw for the Paycheck Protection Program and answer lingering questions about taxability

Advertisement
boombox1 -
Advertisement
native1 -

More in Category




Advertisement
native2 -
Advertisement
halfpage1 -