TRAINING CLIENTS Bruce Borden, owner of Walden Design Build in Toronto, uses a consultative approach to train his potential clients — before they even meet him.
Borden’s approach, dubbed “plansmart,” begins at his Web site, which offers a wealth of educational materials. Under a “Resources” tab are reports on “Avoiding the Nightmares,” “Calculating the Cost,” “The Most Common Mistakes in Renovation,” “Move or Improve,” and “Preventing Cash Problems.”
Next comes required reading. Borden sends potential clients a booklet, Understand, Before You Build, with sections on “Why Effective Pre-Planning Directly Translates Into Less Money Spent Building,” “What No One Will Tell You About Selecting Your Contractor,” and “The Secret to Keep Things Under Control.”
Even referrals filter through this process. “It’s what generates 100% of the work we do today,” he says. Profits have doubled in the five years since he instituted “plansmart,” Borden says, and he’s able to manage a larger volume of work with less overhead, fewer staff, and less client hand-holding.
“We want to work with clients who match what we are all about, and weed out those who don’t. If you are going to spend six to eight months working with someone, you want to know that you are working with the right people,” Borden says.
The “plansmart” process is geared toward grooming the right people by giving them a greater sense of what is feasible in a renovation project. “Understanding helps people make good decisions,” he says. And that requires becoming a consultant who can turn people into expert renovation clients.
Many remodelers would rather just say, “What would you like?” Dellanno says. “Being a consultant requires being a more sophisticated communicator who can listen, talk, investigate, ask disturbing questions, and be able to answer them.”
So, how does Dellanno advise you answer the coffee question? “You reply with a question of your own,” he says. “Are you going to have some?” The answer will tell you whether you should say yes or no.
Loring Leifer is a freelance writer in Shawnee Mission, Kan.
Tips for Incorporating Consultative Techniques
- Educate potential clients about the remodeling process. For most, an extensive remodel is something that people may only go through once in a lifetime. As a consultant, you need to make them feel comfortable with it. Describe the process, advises author and consultant Mike Gorman. Show copies of contracts and payment schedules, discuss start and finish dates and what to expect in terms of noise and disruption.
- Identify needs before materials. You should focus the initial discussions on the owner’s problems with the house, not on your services. “Remodeling is taking a house that is there and eliminating what doesn’t work. It could be lack of space, repair issues, home comfort issues, or not enough light,” says Bruce Borden of Walden Design Build.
- Demonstrate dollar value. Before you show up, find out the tax-appraised value of the house. What’s the expected value of a new kitchen or a new bath? Before you sign a contract, you need to know the owner’s equity and the current resale price. “Then you can calculate the value added by the remodel,” author Mack Hanan says.
- Talk about financing. You should be prepared to discuss the merits of financing, whether or not your company offers this as a service. Tax advantages and timing may make it advisable, even for wealthier clients. “Studies have shown that people will spend 30% more when they finance a remodeling job, even those who easily can afford to pay cash,” Gorman says.
- Be prepared to say no. “As a consultant, your job is to help clients arrive at the best way to adapt their homes to meet their needs,” consultant and remodeler Joe Dellanno says. “That might mean helping clients understand why something they’ve requested may not be a good idea.”