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Getting Prospects to Commit Key to Success in Remodeling
Home builders who are pursuing remodeling jobs to make up for some of the slack in their business need to pay special attention to how they sell their jobs, or they may run into trouble in getting a commitment from their prospective customers, according to panelists at the Remodeling Show in Baltimore in late September.
“You could be the best remodeler of all time, but that doesn’t mean you get the deal,” said David Mattson, of Sandler Training, whose company teaches some basic rules for the industry based on buyer psychology.
Winging it can be a counterproductive approach to selling remodeling jobs, Mattson advised, and remodelers need to be on their guard for prospects who can easily turn an introductory meeting into an opportunity to receive a free consultation — without making any commitment to continue further.
“Sell up-front, present in the back,” said Mattson. “Once the buyer sees what you have, the game’s over.”
Prospects will exaggerate how interested they are in buying a remodeling project, then they will ask for a proposal and drawings, he said, and remodelers will comply because they want to get the job. “The worse the market is, the more we believe them,” he said.
In the meantime, the customer has committed to “absolutely nothing,” Mattson warned. They will proclaim that the proposal is “awesome” but then ask for time to discuss this privately with their spouse “and get back to you shortly. Then they continue to drag us through the mud.”
At this point the chase is on, he said. “You can’t find them and they won’t return your phone call. Buyers can’t say ‘no,’ so they will avoid you.”
To get out of “voice mail jail,” Mattson suggested leaving this message: “I thought this was a good fit and have left messages, but haven’t heard back. I have the feeling you may have decided to go in a different direction. Would you please leave a message on my voice mail confirming that?”
When you go slightly negative, the non-decider will intuitively go in the positive direction and come back to you, he said. “You’ll have a callback, and that’s all you want.”
Once the remodeler has their foot in the door, it’s time to proceed with what Sandler Training calls “upfront contracts.” In order to control the sales process, Mattson said, every time the client is contacted, it’s important to reach a mutual agreement about what will occur next.
Before a scheduled meeting, the remodeler should call the customer to validate the time and ensure that the hour is still good.
This is how the meeting should proceed:
- Tell the prospect the purpose of the meeting and why you are there.
- Set the agenda by telling the home owner the two or three things you want to make sure are covered during the meeting.
- Ask the buyer what they want to make sure is covered in the meeting. (“No one listens to you until they get their point made,” he said.)
- Tell the buyer what you expect the end result of the meeting to be, or what you expect the home owner to decide before you leave.
Tell them what you are bringing to the table and ask them if there is anything else they would like you to cover. They may decide it’s not a good fit or decide to take it to the next step and come back for a two-hour follow-up, he said.
“Begin and end every call with an upfront contract,” said Mattson. “Never leave the house without setting up your comeback meeting. Tell them what’s going to happen at the next meeting. People will tell you if they can’t do it and they’ll be honest about the timing and their budget.”
At the next meeting, the remodeler can tell the client, “‘Let’s get started. Tell me about the kitchen. Show me what you want do be done,’” said Mattson. “When they’re talking, they’re buying. Sales people should hang back, ask questions, let them show you. Do your thing at the end.”
Customers “want to know that you excel in what they want to buy,” he said. “Repeat what you heard them tell you. Focus on the home owner, not you as an organization.”
In order to establish rapport and bond with prospective customers, remodelers need to be able to recognize four different personality types. Some customers will want to cut to the chase; some will want to socialize; some will want to know what to expect and will be anxious about making changes; and others will want to know about every detail of the job — based on their personalities.
(For more on how to work with different personalities to optimize sales, Jody Seivert of One by One Companies, recommended these two books: “The Platinum Rule for Small Business Mastery” by Scott Zimmerman and “The Secrets of Power Negotiating” by Roger Dawson.)
Before handing a remodeling job over to the production team, the home owner should be asked, “What are the two or three things to make sure that this relationship is 100% satisfactory?” Mattson said. Responses can include “'make sure everything is clean,’ ‘don’t let my dog out,’ ‘don’t smoke in my house.’” When the job is being handed over, the remodeler should repeat those concerns to the workers, in the presence of the home owner.
“This is more apt to get these things to occur, and there’s a connection of trust,” he said. “A poor handoff will only mean trouble.”
Mattson also emphasized that referrals are vital to success in the remodeling business.
“Never wait for a job to be done to get referrals,” he said. “Ask for referrals in the selling process once they decide. Know how many referrals you need in a given period of time, how many face-to-face meetings.”
A remodeler is five times more likely to close a sale with a referral than with a prospect from the general public, he said, and also can predict their future business by the number of referrals they are getting.
“You have to be proactive,” said Mattson. “Complacency is your number-one enemy.”
For information on remodeling resources at NAHB, e-mail Kelly Mack, or call her at 800-368-5242 x8451.
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