Friday, April 10, 2015

How to Close More Deals – Part Two



In the last blog I talked about the process of having a lead qualifying sheet and with that, lead qualifying question or questions. 

The idea behind this is quite simple. To eliminate prospects that will never buy from you or are not your best type customer. This one simple process or part of your lead generation system will save you time and money.

Today, I would like to elaborate on the art of asking questions.

Last week I focused on finding that question that qualifies your prospective client as a real hot prospect.

Since every contractor has a different marketplace or best type client, this ‘qualifying’ question may vary. However, here are some more examples.

“How much do you expect to spend?” This is a great question and sets up the financial perspective the client is coming from. It also gives you an idea of the realistic financial value of the project.

Another great financial question is:

“Will you be paying for the work with your own cash or with a bank loan?” This also sets up the financial status of paying for the work, who will pay, and how long it will take to get paid. No matter where the funds are coming from it is important to find out how much they have to work with. 

Remember, projects often do run over budgets with unforeseen conditions or changes. You need to make sure they have the availability of acquiring the additional monies to cover the changes.

“Are you the final decision-maker or is someone else a part of the final decision making process?”  Too many contractors eager to get a job, expend too much time and money jumping right into a sales pitch without properly qualifying a potential client. 

It’s vitally important to determine who makes the final approval and decision on the deal or project. Otherwise, you’ll find yourself having to start all over again, or out of any opportunity to close a deal.

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Now that you have qualified the client as serious, the next questions should help you drill down on why they want to do the work. To be successful with this part of the process, listen intently and don’t be afraid to ask drill-down or follow-up questions.

The opening question for this part might go something like this.

“Why do you want to do this work?” This questions reveals a powerful emotional buying trigger, the “WHY” 

Again, you might need to drill down a little farther. Remember, people buy for emotional reasons, not a logical one. They JUSTIFY their emotional buying with logic.

Another might be:

“What exactly is the problem you are having?” 

Or …

“What do you need and what do you don’t need?” Good question since it focuses them on exactly what they need and you don’t have to make assumptions. Everyone has their pain points and during this process, you should be trying to uncover them.

Speaking of pain points, here is another question to uncover what you need to avoid.

“Have you ever worked with a contractor in the past on work like this?” This reveals whether they have had experience before or not. If they have, you would come back with this drill-down questions.

“What did you like and dislike about that experience?” WOW! Dynamite questions. Now they will tell you the things you want to do and the things you want to avoid!

Another question might follow along these lines.

“What are your expectations?”  Another powerful question since it reveals exactly what they expect and allows you to deal with it in a realistic manner. Now is the time to elaborate on how you schedule the work, handle questions, change orders, budgets, allowances, and all those things that can go wrong on a project.

“When do you want to start the work?” This question will help you understand the prospects perspective of when they expect you to be working on their project. In some areas of the country, the permit process can take days if not weeks and this allows you to educate them on that process and details the steps you have to take before any work gets started. Believe me, this question will avoid a ton of misunderstanding in the future.

“When do you expect the work to be completed?” This question gives you two important items. One, when they think the work will be done, which may not be realistic, and two a chance to work the deal back to a matter of urgency which might just help you close it sooner.

Let me explain.

Let’s say that they feel the work should be done by a date three months away. You calculate that it could be done but not unless you get the deal now. In this scenario, you play the urgency back to them. Such as ...

 “Mr. & Mrs. Jones. I know you want the work completed by this date. Unfortunately, the only way I can make that happen is if I have a done deal with you today. Let me explain. The permit process will take three weeks. Ordering the materials with delivery will take six weeks. The work will take three weeks. As you can see, that is your three months! In order to meet your final completion date, I need your approval of my proposal so I can get started today.”

Asking questions, the right questions, is an art form. It takes practice. To start, I would suggest you write down as many questions and drill-down/follow-up questions you can imagine. Then categorize them to the situation they apply.

If you do this, you will start the process of memorizing the questions and knowing when to ask them. However, practice is the best process.

Next week I’ll discuss part three, the Measure Call. Until then, happy hunting!

Thursday, April 2, 2015

How to Close More Deals



In this segment, we are going to discuss a very hot topic. How to close more deals.

This will be a four-part series, so keep coming back for more valuable information.

Now, let's get started.

Being a successful contractor requires two parallel mind setting processes. Getting Sales, and getting them at a price that makes you money (see my eBook – “How to Calculate Your Money-Making Markup!”).

One does not work without the other.

Now here is the problem.

Too many contractors are following a single and dangerous mindset. Getting the job.

Unfortunately, this throws them into the coliseum of rabid dogs who are also fighting to get the job.

The result?

Low pricing! 

The real question you need to ask yourself is this.

Are you selling low price or … are you selling value?

If you are selling low price, you really don’t care about making money. Instead, you just want the job and hope for the best.

However …

If you know you provide vale and a uniqueness with your service that the prospective client cannot get from the competition, you need to develop an approach that will accomplish just that. I cover this in more detail in my book: How to Market & Sell Your Construction Services like Magic!”

In the next three blog articles I will lead you through the steps one at a time.
I am not going to discuss marketing or developing your promotional materials. If you want more on that, you can get my eBook: “The Contractor’s Magical Marketing Tool Belt!” which is loaded which is loaded with examples and information.

In this blog, I am going to discuss the first step. The one you must accomplish first.

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Qualifying Leads

This starts the minute you have first contact with the prospective client. The cornerstone in this system consists of two things:

1.      The questions you ask
2.      The record of the answers.

By designing the questions, your goal is to uncover enough information to validate the value of expending your time with this prospective client. You are trying to uncover whether they are serious, or fit your needs.

Let me give you an example.

I had a high-end roofing contractor who only did slate roofs. To make it even better, he only worked in three specific towns. His qualifying questions was: “In which town is the home located?” If you didn’t live in one of his three towns, you weren’t one of his customers.

Another contractor did high-end kitchens. His average job size was $150k. This made his qualifying question simple. “How much do you expect to spend?”

In my own construction business, my best customers were waterfront facilities. That made my niche and qualifying customer question very easy. “Is this a waterfront facility, and if so, on what body of water is it located?”

Once you have qualified the client as an ideal prospective customer, you can move onto the next series of questions that allow you to drill down for more information on your qualifying sheet.

Qualifying Lead Sheet

Today we have different forms of media that we can keep and track information. It can be on paper, spreadsheet or a good CRM software.

How you keep it doesn’t matter, it is just important to keep it.

The qualifying lead sheet stays in the process for the customer from initial contact, to sales person, to estimator, to job supervisor. It has all the pertinent information gathered on the client from their first call to the end of the job.

By having this information and correlating it, you can develop the profile of your best customers from the psychographics, demographics and geographic. This will help also reduce your advertising costs and focus your marketing dollars with accuracy.

This is important.

When you qualifying your prospective clients, you will reduce the wasted time on clients who will never buy from you, and increase your capture rate. All at higher dollars!

Next week I will talk a little more on the type of drill-down questions you need to ask. Until then, happy hunting!

Tuesday, March 31, 2015

You Can't Go Back!

Something about getting older, maybe it is because of time and experience.
 
Have you ever realize that you wish you could have done something differently?
 
Maybe ... better?
 
Unfortunately, you can't go back.
 
You see ...
 
Time only moves in one direction ... forward. So we can't go and correct our mistakes. We can only learn from them and correct what we doing as we go forward.
 
If you understand what I mean.
 
Then you realize that the time to correct things is now, not later.
 
Remember ...
 
You can't go back.
 
I can absolutely guarantee you that this principle applies to your business as well.
 
So the question is?
 
Could you sharpen your business knowledge and skills?
 
Or ...
 
Sharpen existing ones?
 
Use a mentor to help you?
 
Take your business to a higher level?
 
All good reasons. Don't you agree?
 
From my experience as a coach and mentor working with hundreds of contractors, the answer is yes.
 
The only ones I've never been ale to help are those that stubbornly refuse to get help, and those who won't follow my directions.
 
So the next question is ...
 
Are you astute enough to realize that you could benefit from some help, or so stubborn that you refuse to get it, and later wish you had?
 
You'll never know until you reach out for it.

Speaking of reaching out.

If you would like to talk and discover how I can help you and your business, you can set up a phone conversation by clicking here!

Monday, March 9, 2015

Do you know where you make your money?

http://www.contractorcoaching.com/mentors.php

The Golden Hard Hat Mentoring Program - "Taking Care of Business!"

If you think every different type of job you do is making you money, you may be sadly disappointed.

Not every job or type of work makes you money.

In fact, some are real losers.

In a competitive market your competition’s willingness to take the job cheap, or below your costs, hurts your Sales and bottom-line.

On the other hand …

Some owners may also be leeches of your profit margin. Slow payment, expecting you to do extra work for nothing, and the never-ending punch list.

It is painful to think what work will make you money but not really know, can steer you in the wrong direction.

This is where knowing your business metrics and having the right tools will help you optimize your approach to getting work.

Making smart decisions based on valuable information is the key.

Understanding your business metrics makes your business work for you.

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However, if you don’t know your own business metrics, you become the victim of your own ignorance.

Let me explain what I mean.

When I first started out as a contractor, I thought I made money on every job.

Unfortunately, that wasn't the case. Some made money, others made less or none.

This bothered me.

I kept asking myself the question: “Why?”

At a glance, I couldn't uncover the underlying details.

I kept thinking, what is causing me the problem?

With that drill-down question, I embarked on developing a method of uncovering and revealing what was really going on. In other words, the metrics.

You see, most contractors focus on the basic Job Cost VS Estimate result.

This is fine because it will tell you if you brought it in as estimated or if you didn't.

Sadly, it doesn't reveal what is really going on under the covers. The real root problem or problems.

In my “Golden Hard Hat Mentoring Program,” I give my clients my Job Characteristic Spreadsheet that points to the plus and minus of the project, expending of company’s resources, and even … the owner.

This drills down farther than the typical job cost report.

It also flashes to you the good, bad and ugly of the job, so you can make intelligent decisions about the work or owner.

The report displays the time to complete, size and type of work, as well as the consumption rate of the company’s resources.

The report also informs us to the turnover rate, profitability, and the collection cycles of the owners.

This compliments the company’s volume derivation and distribution of management time which establishes the best economic goals for the company to pursue.


The metrics are revealed in color. Red is dangerous, Yellow is warning, and Green is good.

Figure 1 Job Characteristics Report of www.hgassociates.com


To optimize your construction company’s profitability and maximum use of capabilities and capacities, understand where and with what work and/or owner you make your highest return for your effort. This is the smartest way to jump-start your company’s success.

By understanding the metrics, you’ll be able to focus in on the work where you make money and get paid.

Again …

Knowing your business metrics is the key to success.