flexiblefullpage - default
interstitial1 - interstitial
Currently Reading

Stop Over-Qualifying Leads

Advertisement
billboard -
Management

Stop Over-Qualifying Leads

A disturbing trend among salespeople and owners of smaller remodeling companies is costing businesses a lot of potential revenue


By By Chip Doyle July 17, 2017
Giving too much money for kitchen remodel to over-qualified lead
This article first appeared in the July 2017 issue of Pro Remodeler.

The construction industry is booming. It used to be commonplace for homeowners to get three bids before deciding on a contractor. Now they are lucky to get three estimates and luckier still to find a capable contractor that isn’t already booked through the summer.

But I’m seeing a disturbing trend among salespeople and the owners of smaller remodeling companies: Many of them are over-qualifying leads. They are asking homeowners budget questions and then disqualifying them if the number is too low.

That mistake is costing these companies as much as 40 percent of their business. Now understand, I’m a big fan of qualifying prospects; I make a living teaching people how to do it. But a premature discussion about budget is a sure way to end the process with a homeowner. 

Ninety-nine percent of homeowners are shocked by how much remodeling costs. They watch TV programs depicting major remodels that are done over a weekend at an incredibly low price while the family enjoys two days at a major theme park. So it’s understandable that a new prospect won’t have a realistic budget. The mistake that salespeople are making is they aren’t uncovering what the prospect is willing and able to spend. Instead, they are finding out what the homeowner thinks the project will cost.

it’s unrealistic to think that someone is suddenly going to increase their budget from $40,000 to $80,000 as the result of a 10-minute phone call. instead, use other clues to decipher their spending tolerance.

I find this happens regularly. A salesperson burns through a ton of leads to get a handful of clients. And because he or she lacks the true qualification skills necessary, the homeowners who end up sold aren’t really great clients anyway.

I recommend avoiding any detailed discussion about budget expectations on the phone. Period. It’s unrealistic to think that someone is suddenly going to increase their budget from $40,000 to $80,000 as the result of a 10-minute phone call with a salesperson. Instead, use other clues to decipher what their spending tolerance may be. For instance, home value and neighborhood are much better predictors of a person’s real budget. 

Yes, you will go out on more appointments and some of those will not close due to budget. But when it comes to selling larger remodeling projects, the additional clients you close will more than offset the added cost of any extra appointments.

Tags


written by

Chip Doyle

Chip Doyle teaches salespeople “how to sell without sounding like a salesperson.” He speaks at dozens of events per year and is the author of Selling to Homeowners – The Sandler Waychipd@sandler.com 

Related Stories

A Look at Quiet Quitting

“Quiet quitting” is affecting many industries, including remodeling. Here’s what we can do to combat it.

5 Things To Do About "It"

Although the changing economy and resulting consumer behaviors may feel out of your control, there are still a few impactful things you can do

Does Encouragement Really Matter?

Home improvement industry leader Brian Gottlieb shares the importance of encouragement for any business

Tips to Get Started on Your Exit Strategy

It’s never too early to begin planning the next stage of your life. Industry advisor Mark Richardson offers some tips to get started

Are You a Farmer or a Hunter?

Industry advisor Mark Richardson says that over the last year, there’s been a major shift in the remodeling business from a farming mentality to a hunting skill set

The Argument for a Four Day Remodeling Work Week

The four-day work week has a global spotlight—could it work in remodeling?

How We Nurture Trade Partner Relationships

Here's what the director of production of a $36 million company does to strengthen trade partner relationships

Sustainability and Strengthening Company Values

Allen Construction CFO Lindsay Helmick talks company values, new initiatives to strengthen them, and the company's focus on sustainability.

A Letter to Your Clients: 10 Ways to be a World-Class Client

Mark Richardson flips the script, offering insights into what makes a good client and ways remodelers can help

5 Tips for Successful Performance Reviews

If you want to peek into a successful business, look inside the minds of its people

Advertisement
boombox1 -
Advertisement
native1 -

More in Category


Business

5 Things To Do About "It"

Although the changing economy and resulting consumer behaviors may feel out of your control, there are still a few impactful things you can do



Advertisement
native2 -
Advertisement
halfpage1 -