Learning how to price construction jobs is tricky work, even for the most experienced. But now you have to price for lifelong clients. Learn why here.
But in today’s economy, the numbers can be scary. What the Home Asset Management Plan proposes is approaching clients with more than just estimates and costs.
It proposes learning how to price construction jobs with a plan of action.
How to Price Construction Jobs | Moving Beyond Price
Not too long ago, the residential remodeling industry was doing great. Calls were coming in, big projects were being undertaken, and the income was flowing freely. But after the recession and real estate market meltdown, the work has been drying up, and fast, too.
In order to curb this apparent death of the remodeling business, you have to be willing to shift gears a little bit to better suit today’s consumer base. This means using a relationship-driven business model more than a project-centered one.
It means dealing with people, and not just numbers.
The Home Asset Management Plan suggests many ways to improve your business for the new day, the new industry, the new economy, but one of the most important is in how you deal with clients.
A client is an emotional homeowner. This isn’t to say that he or she will constantly cry and shift moods, but rather that they have an emotional investment in the product you’re trying to sell. What happens to their house happens to their home, what happens to their home happens to their lives.
When you price a construction job, then, you need to approach it differently than you may have before. Because it’s not about the numbers–it’s about so much more than that.
Here are some tips to make your pricing more effective:
- If the project is outside of the client’s price range, suggest cheaper alternatives, alternate ideas, and elicit input from your client
- Explain the benefits of every construction job on both a short-term and long-term scale
- Approach each job as an investment in the future
This isn’t to say that you’re meant to be bending the truth or waxing lyrical to your client in order to bamboozle him or her out of their money. Rather, it’s an approach of honesty, trustworthiness, and mutual loyalty. By focusing on the client instead of the project, you can develop a life-long lead that will provide you work for years to come.
How to Price Construction Jobs | Long-Term Scheduling
One of the most important facets of the Home Asset Management Plan is concerned with long-term scheduling.
You will sit down with your client and develop a calendar of projects that spans the next 3-5 years, or more.
With your client, you’ll discuss which projects need to be taken care of right way and which can wait. Some of the larger, more cosmetic projects can be pushed down the line so that the client can have some time in which to raise money. In the meantime, you can take on smaller jobs with them and still pull in a frequent income.
Long-term scheduling is how you:
- Earn your client’s trust and loyalty
- Create years of job security
- Become the one-stop-shopping destination for your client
How to Price Construction Jobs | A Model for the New Economy
In this post-recession era, people are much tighter with their money, and rightfully so–we were all hit hard.
What this means for us in the construction and contracting world is that there isn’t a lot of immediate, disposable income. There is still some money out there, but it takes awhile to accumulate these days. This is a new economy, one that’s dependent on saving and thriftiness.
The old project-driven business model doesn’t work in this new economy, because people aren’t generally going to come out of the woodwork with big new renovations they want made.
Instead, you need to be more careful and creative in how you price construction jobs with clients. You need to become the go-to gal or guy, the single source of repair and restoration, and you need to be patient with the projects. If the money isn’t there right now, then you can wait.
The Home Asset Management Plan will teach you the value of patience, both in philosophical terms and in dollar signs.
If you’d like to hear more about this new approach in how to price construction jobs or just about the Home Asset Management Plan in general, please don’t hesitate to contact me today.