Finding and Keeping Good Subs
My biggest challenge as a residential remodeler is obtaining and keeping qualified and experienced sub-contractors willing to do smaller type projects.
Spec Homes / Custom Homes
I was asked for information on the differences between building spec vs. custom homes. For additional input, we asked for help from contractors we know that have been successful in new home construction. We…
Upselling: Give Them Options
If you are in business, you are in sales. No rationalizing, you are in sales. If you don’t sell something at a profit, you are going to go away.
Charging for Estimates
If you’ve been in construction sales very long, you’ve met potential customers who ask for an estimate, but after a lot of work you learn they were just shopping.
OH&P in Construction – Using Figures Wrong Hurts Your Business
Adding overhead and profit to job costs to calculate sales price is a mistake. Contractors should use a markup calculated for their construction business.
Is it a Construction Business, or a Hobby?
Question came from a friend the other day. He said, "Michael, how do you determine whether someone in construction has a business or a hobby?"
Is My Contractor Overcharging Me?
We have had two e-mails in the past week from homeowners asking about the “Industry Standard” for pricing, wondering if their contractor is overcharging them.
Provide a Service, Make a Profit
A young businessman called. He was in a state of shock after checking his books over the weekend and found over $11,000 in receivables, much of it over 30 days.
Price Your Construction Jobs Correctly
If you are tired of starving because you have enough work but don’t have the money to pay your bills, heed these words.
Cost-Plus, Cost+, Time and Materials, T & M
A coaching client was working with a potential customer who wanted a remodeling job on a cost-plus basis instead of a fixed fee contract.
Construction Employees – It’s Break Time!
At the start of break, the crew jumped in a truck, drove 15 minutes to a doughnut shop, had coffee and a doughnut or two, drove 15 minutes back to the job site.
Salary and Markup
One of our clients called with cash flow problems. Leads were coming in, sales and production was good, correct number of employees for the volume of work, but no money.
Be Fair to your Customers – and Yourself
I talked with a young guy the other day who called about our coaching service. His company was upside down and I could tell he was hurting.
Specialize in Construction – Stay Focused
After working with a few hundred coaching clients, I believe that the key to profitability in construction is staying focused on doing a few things well.
Getting Paid for Quotes – Part 1
Design agreements, letters of intent – get paid for written quotes.
How Much Do You Pay the Owner?
During a recent class I taught, it was clear many in the audience didn’t understand that their sales volume must be enough to support the salary of the company owner.