Work smarter, not harder!

It’s great not having to chase building work. Some builders are currently so busy that they’re turning away clients, but they’re concerned about losing out on future work by doing so

When turning down work, a busy builder’s standard response is normally “try another builder”. While understandable, it’s not the best approach. You may be turning away really good clients, meaning you’ll be forced to accept lesser ones in the future.

How to turn away work and make money

1. Put your prices up a little 

It‘s usually true that price-conscious customers will make their decision based on the price at the bottom of the contract, or on the hourly rate quoted in the estimate. They are not interested in the other value-adds you may bring, because they don’t see any difference between builders.

By quoting higher rates, you will drive away the caller who wants any builder. At the same time, you’ll find out if your caller is discerning, and wants you and what you’re offering, because your value-add is attractive. Maybe a friend has told them that they just have to use you!

If your caller really wants you, it’s more likely they’ll be happy to pay your rates and fit in with the way you do things. These are the clients you want. They’re your “A-type” customers!

Additionally, when you raise your prices, the extra money helps cover the costs associated with preparing better estimates and more accurate quotes. It pays for better supervision, so you can meet your clients’ expectations. You can attract better builders, who will be able to finish some jobs faster and cheaper. It also helps cover the down days you might have as a result of turning away not-so-profitable work.

2. Don’t consider contracts where your track record is bad 

If you back-cost your jobs, then you should know which ones you typically make a good profit on, and those you don’t. If you often lose money on fixed-price agreements, then tell your callers that you provide estimates only and that you charge an hourly rate.

Similarly, if you are good at delivering within the parameters of your fixed quotes and making money from them, then only select clients who are willing to enter into fixed-priced agreements. Find your niche.

If you choose to turn away jobs that you don’t normally make much profit on, and instead focus on securing only contracts that you know will turn a good profit, you’ll make more money while turning away less profitable work.

3. Specialise and qualify

Determining what type of contracts make you the most money can help you choose the type of work you’d like to specialise in.

Ask your caller some initial questions that will clearly determine if the job in question fits your speciality. If it does, then proceed. If not, and you’re busy, you may want to turn them away, because they see you as just another builder and you may not be able to charge your specialist rates.

If you’re a specialist in a particular area, then you’re usually able to charge higher rates. For example, villa restoration specialists are highly valued by fastidious villa owners, because of their attention to detail and special knowledge of long-forgotten building practices. Such owners will pay to get the finish they desire, but you need to be the specialist.

So, if you are a villa specialist, but your caller is clearly not concerned about the finish, you may decide not to proceed because the client doesn’t fit your preferred parameters. Qualify your callers.

Sometimes, the best way to ensure you are available for the jobs that suit your speciality and bring you the best profit is to say no to the jobs that don’t fit.

4. Require your clients to follow your process

There is nothing worse than being run around by demanding clients: attending meetings when they schedule them, answering calls at all hours, and generally being at their beck and call. Some clients seem to think of you as their personal servant, just sitting waiting for their call!

Then, in spite of the huge amount of time you have put into preparing a quote, exactly as they have requested, they choose another builder.

Save yourself the time and stress by reducing the number of quotes you lose. Clearly outline your sales process and get your client to agree to follow it. Make sure you stick to your process.

It is possible to turn away work and still make money!

 

About The Successful Builder

Graeme Owen, based in Auckland, is a builders’ business coach. Since 2006, he has helped builders get off the tools, make decent money, and free up time for family, fishing, and enjoying sports. Get his free ebook: 3 Reasons Builders Lose Money and How to Fix Them for High Profits at http://TheSuccessfulBuilder.com.