Nation's Building News Online

Plain Text Version (Click Here for Graphical Version)

Sponsored by Countrywide Home Loans National Builder Division

www.NAHB.org
Week of March 29, 2004

Front Page

President's Message

* For Working Families, Affordable Housing Is in Short Supply

Housing Forum

* Letters to the Editor

Housing and Economics

* With Mortgage Rates Down, New Home Sales Are Up Again in February
* Performance of Housing Industry to Remain Strong, Economists Predict
* Single-Family Home Resales Rise in February
* Eye on the Economy

Housing Politics

* Reauthorization of Flood Insurance Program Urged

Business Management

* Get Land for Nothing

Green Building

* Successful Business Strategy Starts With Green Home Building
* Recycling Construction Waste Becoming Second Nature in Colorado
* Low Impact Development Reduces Storm Water Runoff and Development Costs

Small Builders and Remodelers

* Insurance: Does Subcontractor Non-Compliance Put You at Risk?

Housing Consumers

* Column Service Article Advises Home Owners on Cicada Outbreak

Womens Council

* How to Negotiate a Job Offer

Member Dividends

* NAHB Helps Me Stay in Business, Improve My Profit Margin

International

* NAHB Working to Open Up Business Opportunities With Mexico

Labor

* Project CRAFT Graduates First Class in Dallas

Building Products

* Dream Tour Features Innovative Products and Construction Techniques

Builder's Engineer

* ‘No’ — The Hardest Word?

Building News Coast To Coast

Association News & Events

* NAHB Board Meeting in Washington April 27-May 2
* Column Service a News Source for Home Builders Associations
* Share Your Knowledge and Expertise
* Sign Up for the Legislative Conference and Make Housing a Priority in Congress
* Help Build This Year’s Family Build Home for a Mother of Three
* Calendar of Events

NBN Back Issues

 

‘No’ — The Hardest Word?

Elton John got it wrong. Sorry is not the hardest word. It’s “no” — at least for most contractors.

"Travis Stanton" is one of my favorite builders. The problem is, he’s a lot of people’s favorite. He owns a small general contracting company. Recently, I asked him to do a minor remodel. After a five or 10 second pause (I thought we’d lost cell phone contact), he finally stammered, “Um, well Tim, I don’t know.”

I knew. He was too busy. “Travis,” I said, “It’s okay if you’re too busy.”

“You sure?” he politely replied. “I could probably squeeze it in somehow.”

“Naw, don’t sweat it.”

His relief was palpable.

A contractor who has enjoyed any measure of success understands the dilemma. Most small business owners would just as soon cut their arm off with a dull hacksaw than tell a client, especially a good one: “No, I’m too busy to take your job right now.”


Sponsored by: National Association of Home Builders

Members Save at BuilderBooks.com
Reach 100,000+ Builders & Contractors
Membership has its Advantages
Learn More. Earn More. The NAHB University of Housing.

Here is why contractors need to be comfortable with "no":

  • Taking a job you don’t have time for will almost certainly not be done to your normal high standards. The customer gets mad and your reputation suffers. I bet everyone reading this can readily think of contractors (or consultants) who are perpetually guilty here. Would you use them?
  • While trying to do the extra job, those already on the books will be neglected. Double jeopardy.
  • Taking too much work puts additional pressure on your crew. Most good employees take their jobs personally. If they don’t have the time to do it right, they become upset and dissatisfied. Company morale suffers; and the first ones to notice are your clients.
  • Too many jobs at once spreads tools, equipment, support staff and other resources too thinly. Production (and again, morale) will take a hit.

Here is what to do when confronted with this issue:

  • If the client is unknown, politely tell them your current workload is too great to ensure a quality job, and you regretfully must decline.
  • If the client is an old reliable, have a heart-to-heart talk. Assure him that he is at the top of your list, but if the deadline is really tight, you’ll have to pass this time. Explain that he is too valuable for you to risk doing a rushed, sloppy job for him.
  • Offer alternatives: can it wait a week?…a month? Can another phase or trade go first? Can you get it started, then jump off until something else is finished, then come back? Be creative.
  • Remember, all good businesspeople understand being in demand. They won’t blame you if you are. In fact, it reinforces that you are a quality contractor. Good clients appreciate "no."
  • Consider hiring more employees. Be careful, however. New employees need extra guidance and oversight, which can only be supplied by existing seasoned staff — the same seasoned staff who are already overtaxed. Newbies also need tools and additional office resources. Though frequently chosen, this alternative is rarely a good one. Slow, planned growth is always better than growth by crisis.
  • If you must say no, recommend someone else who is good. In fact, offer to make the phone call. This way you can establish win-win referral systems with friendly competitors, while providing a great service to your client. Counter-intuitive? Savvy clients have already decided whether you are worth coming back to or not. If you’ve built good relationships, been responsive and have done good work, as Arnold would say, “They’ll be back."

Tim K. Garrison, P.E., M.S.C.E., of ConstructionCalc.com has authored a book and several short courses, and lectures on topics relevant to builders. Reach Tim at timg@constructioncalc.com.

The views expressed in this article represent the personal views, statements and opinions of the author and do not necessarily represent the views, statements, opinions or policies of the National Association of Home Builders. NAHB does not necessarily endorse any of the views expressed by the author and NAHB is not responsible for any direct or indirect consequences arising out of the views expressed in this article.


 
[ Go to Top ]


Sponsored by: Countrywide Home Loans

See how Countrywide can protect your buyers with a complete line of home and property insurance products.
Discover how our Fixed Equity Loan offers a payment you can count on.

To unsubscribe or to manage your subscription, CLICK HERE

Nation's Building News Online is produced and distributed by the National Association of Home Builders