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Discussion Forum

Pre-qualifying potential clients

| Posted in Business on August 28, 2004 06:06am

Hope this is not a FAQ… I know it has been at least discussed as a side topic…

How do you all pre-qualify potential clients?   I really don’t want to spend time on people who only want the lowest price, get 5 or 6 bids, or are not serious about spending money.   Or, some people have no clue how much projects cost.  Some people think they can get an addition for $2k… What kind of things can you ask on the phone, with out just coming right out and saying – if you want just want the lowest price, don’t waste my time…  Yea – I know – someone is gonna say “don’t give free estimates”, which some day I may work up to that, but in the mean time I have to build up a clientele, etc, and put food on the table.

Then, once I do go out to their house, I try to feel them out even more, and at this point if they don’t really seem to want to spend real money, I’m OK with cutting my losses right there and saying something like – “oh maybe around $15 or 20k.  If you are still interested, give me a call, and have a nice day…”  rather than going through the whole takeoff process for nothing.

I’ve even resorted to looking at real estate values on the internet (our county tax records are right there for everyone to see) and just won’t spend time on a property that is under a certain value.

Also – on a somewhat related issue – what about someone who calls back for a free estimate on something when the first (unrealted) estimate didn’t result in a job?  Am I wrong to just say – “Sorry, I’m too busy.  Have a nice day…”

Thanks, 

Matt
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Replies

  1. VaTom | Aug 28, 2004 03:10pm | #1

    what about someone who calls back for a free estimate on something when the first (unrealted) estimate didn't result in a job?  Am I wrong to just say - "Sorry, I'm too busy.  Have a nice day..."

    I tell everybody that I give each prospect one freebie.  Rarely do I get a second request.  Those are told they've received theirs and mention what my consulting/design time is worth.  Don't always get the job, but I always get respect.

    For the initial conversation (phone) I usually ask more questions qualifying the caller than I get asked.  If you're advertising for work, this is very difficult.  A referral-only business makes it easy.  If I don't know who referred me, I've very wary. 

    PAHS Designer/Builder- Bury it!

  2. build1234 | Aug 28, 2004 08:33pm | #2

    Over the past 6 months or so I have changed over to the following "qualifying" mantra. I'll meet any client with a job that interests me and fits my crew and capabilities. When I meet with them I'll always discuss my schedule to give them an idea of when. As for cost, if they have plans I will take them home and price them by the plan. I feel that if they go through the expense and time to produce plans that I should spend some time going through them. By plans I mean those produced by an architect or designer. Plans provide legitimacy to their intentions so I don't feel like they are just window shopping.

    However, if they do not have plans I will give them a ball park estimate on the spot during the first face to face. Some people are blown away, and it is a bit embarassing to say a job is 200K if they think they can do it for 100K. Usually they have some response like "...my brother in law thought it would cost X..." I nicely tell them that I can't do it for X and neither can any of my reputable peers.

    This is sometimes an uncomfortable converstaion, but I feel so great when I leave and realize I've saved several hours pricing a job that I never had a shot at.

    1. JustinT | Aug 28, 2004 09:57pm | #3

      I started out bidding all work that an architect had produced plans for but I quickly realized that they are farther off on  pricing than what my guesstimates are and they are always low never high.

      Do you still give rough estimates on the  spot to these customers to qualify them?

      1. build1234 | Aug 29, 2004 06:46pm | #5

        I don't give on the spot estimates to clients with plans unless they ask or the conversation goes that way. The thing is, I don't do that much volume, so I'm only pricing about 6 sets of plans per year I'd say. Most of what I build is done off of my own drawings/design because that is how our customer base is structured. Most of our work is from recommendations so it is a bit of a self perpetuating thing where people come to us rather than an architect first. This is good and bad.

  3. jjwalters | Aug 28, 2004 11:35pm | #4

    How do you all pre-qualify potential clients?  

    I am very informal.........to the point of turning some people off who are looking for a more professionalized person.

    I just ask a potential how much money they have to spend on the project. We take the number and worked together to see if we can do it. I help them create a budget.

     I always work out of their pocket and in over thirty years have had no great problems. and made a decent living. I love carpentering and dealing with homeowners, if they pick up on this, they trust me and everything works real nice.

    If not, I walk.............or they shove me out the door and lock it behind me.

  4. Piffin | Aug 29, 2004 09:15pm | #6

    A lot of it is pretty direct and up-front. They appreciuate that kind of talk and those who don't aren't worth the time of day anyhow - they are the users.

    Example. This past week, I met with a young couple who are in process of buying one of the older homes here. The FIL is an old customer of miune, but not one of the big money spenders. His attitude was always, "It's just an old camp in Maine, so we don't want to spend too much on it" even though I would suppose his net worth to be over 20 million

    anyway, junior and his bride walked me theough their new accomadations and listened to my ideas. Then I said, before we go any further, we need to be sure that we're on the same page here. I wouldn't want to design and estimate a hundred thousand dollar job for you if you only had fifty top spend on things and I also wouldn't want to do 50K quality if you are expecting lots of glitz and glamour. I can easily see spending somewhere in the neighborhood of $240K on the place to do all of these things and an additional hundred if we do the addition you mentioned.

    He never blinked and said that he would have expected to spend more. my next question was whether the money was all in hand or if there would be bankers involved.

    All private money.

    We shook hands and I'm starting the design process bt working up a concept and will get a deposit with that. Mnay times, I will have a deposit even before taking a first measurement, but my instincts are right on this one.

    part of building your reputation is that once you have branded yoruself and they stand in line to get you to do their work, they have already weeded themselves out by time they get to you. someday, they will be saying, "Oh you got Matt to do your kitchen for you? You are so lucky!"

    To get to that point you have to be professional, clean, timely, and of good quality product - and let them know it.

     

     

    Welcome to the
    Taunton University of
    Knowledge FHB Campus at Breaktime.
     where ...
    Excellence is its own reward!

    1. User avater
      BillHartmann | Aug 30, 2004 01:36am | #7

      Here is an artical about this.

      http://forpros.lowes.com/index.cfm?go=main.feature&aid=70

      1. dIrishInMe | Aug 30, 2004 02:32am | #8

        Thanks Bill.  I found some good points in the article.

        I went for another dead end bid yesterday.  Someone from my wife's place of employment wanted a 20x20 deck.  The guy just seemed to want to argue with me, and get his project for as cheap as possible.  I think he thought he was in a market place in New Deli when we started discussing price... The kicker was though that there is an AT&T fiber cable right of way running through the property.  I told him that we could not build there - he didn't want to listen.  Oh well.  Better to waste an hour, than to waste another 3 prepairing a proposial, taking it out to present, and then either not getting the job because I was too high, or ending up with a bummer job.  He also wanted me to move a natural gas line for the barbucue grill, which I told him I'm not licensed to do - his answer was "it will only take you a few minutes"...    Matt

        1. andybuildz | Aug 30, 2004 06:03am | #9

          I "Always" ask my potential client what their budget is on jobs I expect to be over twenty-thirty grand or so.

          I think lots of clients are put off by that so I explain initially that that doesnt mean anything other than leaving me with an area to pinpoint the type of proposal to work up.

          After all whats in my head is almost always different than whats in theirs a lot of times....because too many times they dont even know what they want.

          My wifes phrase in her real estate biz is"buyers are liers".

          They say the "have to have ABC" and end up buying DEF.

          To many folks have far too large a head to satisfy whats in their wallets.

          When someone has no plans for an addition I let them know I can have some prilimanary drawings drawn up for X amt of dollars and if they complain about spending money right away......I walk....and that happens far too often.

          Live and learn and trust me...I've learned. I see too many people never do the work after putting the builder to work on proposals and design for nuttin'.

          Be well

          andyThe secret of Zen in two words is, "Not always so"!

          http://CLIFFORDRENOVATIONS.COM

          1. dbanes | Aug 30, 2004 06:55am | #10

            Hey bud, listen to Piffin cause he's telling even the small contractor the tool to use... the ol' spidey sense... I worked up some numbers for a rental property owner about 2K worth of siding replacement, he calls and won't take the estimate totals from me,and wants the "paper work" so I know he's gonna apple and orange me with my own bid against someone else...Be careful about advice which tells you the client is a liar, because it can glaze yor attitude in this trade, we need to love people and our trade to keep going .Scribe once, cut once!

          2. andybuildz | Aug 30, 2004 02:25pm | #11

            I worked up some numbers for a rental property owner about 2K worth of siding replacement, he calls and won't take the estimate totals from me,and wants the "paper work">>>

            That happens to me as well.

            I've learned a short time in the biz yearssss ago never to give out the paper work for free.

            I charge for that.

            Too many times its for insurance claims and the job goes to the lowest bidder and my estimate which is never the lowest goes to the insurance company which is fine...but PAY ME!

            you can allow the paid for paper work to be applied to the job if you get it but i dont even like doing that because the time i spent typing it all out and figuring it is time i could be spending with my family>

            my time should be paid for>The secret of Zen in two words is, "Not always so"!

            http://CLIFFORDRENOVATIONS.COM

          3. dbanes | Aug 31, 2004 04:27am | #12

            That gives me an idea, when I ever handle an Insurance deal I will require contact with the agent...and get a report of who's contract is used for the repairs,If mine is it,and I didn't do it I will just 1099 the error at year end...

            Scribe once, cut once!

          4. SonnyLykos | Aug 31, 2004 05:05am | #13

            Piffin said:

            "Part of building your reputation is that once you have branded yourself and they stand in line to get you to do their work; they have already weeded themselves out by time they get to you. Someday, they will be saying, "Oh you got Matt to do your kitchen for you? You are so lucky!""

            BINGO!!!

            Branding !

            Listen to Piffin, closely.

          5. dIrishInMe | Aug 31, 2004 05:31am | #14

            After reading some of you all's pep talks, I contacted some of my recient cilents for a "warranty checkup".  The last 2 bids I've been on I wore dockers - instead of my regular shorts.  Stopped wearing torn up tee shirts on the job.  Tonight I delivered a bid, with the 2 pocket folder thing - job/material related info on one side, contracts of the other side.  They said they wanted to think about it, but I'm still optimistic.  So, I'm taking some of you all's advice, but this is going to take a long while to build what you all have. 

            Thanks much,Matt

          6. SonnyLykos | Aug 31, 2004 07:07am | #15

            Good for you. Regardless of where you get them, continue implem,enting ideas that just seem to be right, better yet - professional.

            And remember, it does take a while to "brand" yourself. If I remember, it took me about a year in Chicago, about 6 months in Mich. and about 3 months here. I attribute the fact that with each move it took less is becasue with each move I had fined tuned my "process."

            Believe me, one day you will suddenly realize: "I have arrived." Enjoy taht great and proud feeling because with the coming of that realization comes the tremendous responsibility to maintain what got you there. It's like a baseball player finally making it to a .500 batting average. He is thrilled but also realizes the additional awareness and work that is mandated to "maintain" that average. And believe me, it's easy, very easy to slip.

            That's why I keep Albert E. Gray's statement by on my desk and my dashboard as reminders. He interviewed many , many successful athletes, business people, married spouses, ministers, people from various careers, looking for the single common denominator that they all had and that he could sum up in a single sentence, and he found it:

            "Successful people form the habit of doing the things failures don't like to do."

            Think about it. The "successful" athlete who practices hours each day while his/her peers skip here and there; the "successful" student who studies hours daily while his/her peers goofs off, parties, etc.; the "successful" spouses who took their vows literally, work out disgreements, and simply say "I'm sorry. I was wrong." when appropriate, instead of being so quick to divorce - and on.

            Only about 2-3% of any career type ever become successful. There's a valid reason, and Gray captured it in that one sentence. Success does take time, but every few months you will see the improvement.

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