Don’t Fudge It On Budget Figures scare people. If clients haven’t done their homework, they have no idea how much cabinets, appliances, or flooring cost, let alone what labor costs to rip out and rebuild a wall. To combat budget fears, Gregory Antonioli, owner of Out of the Woods Construction & Cabinetry in Arlington, Mass., lays it all on the table — including disclosing his 67% markup early on. “We don’t keep secrets,” says designer Lisa Pearce. If a customer questions an item’s cost, says Pearce, who also helps with product selection, she explains how it might take her two hours to research and locate a particular product and its price. “People understand the service that goes on behind the product buying.”
Being a design/build contractor, Antonioli has a certain measure of control over fees. He uses a multi-tiered process that begins with a feasibility study. “We come up with a ballpark price that we guarantee 10% up or down,” he says. “That’s to give people a comfort level.” He is rarely off the mark, even with change orders.
Hooey believes in putting price right out front. A certified kitchen designer, Hooey says that when he was a remodeler, he would show clients photos of similar jobs and tell them what it cost. “Educate your client; be a resource for them,” he says. “Give them an idea of what they’re really getting into.” He even suggests putting sample remodels with their price tags on your Web site.
Selection Overdose Although remodelers recognize that everything you can touch in a kitchen or bath has choices associated with it — color, texture, size, shape, price, brand — homeowners may not realize the sheer volume of choices until they begin the process. Ask a female client what it’s like to pick out a pair of pantyhose, then multiply that frustration by 10, and she’ll get an idea of what it can be like to pick out just one product. Many remodelers, like Bob Fleming of Classic Remodeling & Construction in Charleston, S.C., use a selection coordinator to help clients shop. “We do not allow them to go shopping on their own,” says Fleming, who says his coordinator Mike Stansell takes clients on a shopping spree, driving them to all the selection points where time has been set aside with each vendor representative to work exclusively with the client.
Another selection issue customers may not be aware of or understand is the difference between products sold by big box stores and those found through the remodeler’s designated suppliers and vendors. John Sperath of Blue Ribbon Residential Construction outside Raleigh, N.C., says he discovered a few years ago that certain brand name items sold at The Home Depot were not the same quality product as those his vendors sold but carry the recognizable name. His customers didn’t understand why they should pay more for a fixture from the preferred vendor. This kind of selling, says Sperath, gives the impression that contractors are ripping off homeowners.
Sperath developed a cover letter that he gives to clients along with his preferred vendor list. In the letter, Sperath explains that customers won’t be comparing apples to apples if they look at retail chain products versus those from preferred vendors. He will install a product a client brings in from an outside source, but he won’t guarantee it. “My clientele is sophisticated enough to understand what I’m saying in the letter,” he says. “If they go to my supply houses, they’re getting what I quoted.”
As Time Goes By One of customers’ biggest gripes is the amount of time a remodel takes. Even with all the selections in place, says Alan Freysinger, co-owner of Milwaukee’s Design Group Three, one of his high-end kitchen remodels takes about 12 to 16 weeks. Mostly it’s because people want something unique in style, and there’s more time invested in the selection and production” processes.
The selection process in particular is time consuming. If you don’t use a selection specialist, you need to be highly organized and make sure selections are made before a project begins. Freysinger says he won’t give clients a construction start until all selections are made. “If you don’t have those selections done, your chance of having something go wrong from a scheduling standpoint are pretty high,” he says.
Keeping clients in the scheduling loop helps them visualize the end of the project and offers them a way to tick off goals accomplished. This allows them some control over the process and may make it seem as if things are moving more quickly.
Antonioli, who does about 40 jobs a year, gives clients a project schedule chart. “If something is going wrong on our project, we can’t hide it from them, and they can see if we’re on schedule,” he says. He also holds weekly meetings and provides clients with a written status report of everything that was discussed and who has obligations for the following week.
Simplistic as it may seem, the smoothness of the process will rely on planning and communication. Because you are the resource, you have to prepare your clients for every eventuality and make things easy for them. “People can really stress out. Then after a time they’ll get into the groove,” says Mar-rokal’s Davies. “It can be a strain, but it’s important to remind people that it’s supposed to be fun.”