Tuesday, September 2, 2008

This Contractor Lead Biz is a Tough One!

It seems everything going out these days is trying to come back for a credit. The only problem is (for the contractors anyway) we call all of our credit requests to verify the contractor's story. We tend to get a lot of contractors that claim they are not able to get in contact with our leads. Funny thing is we call every single lead before we sell it to them so they have been contacted by us and for the contractors not to be able to get them seems kinda sketchy. Now mind you I am generalizing here, not all of our clients try to turn everything back for credit but there are enough that do so I thought it would make a good article.
Most recently, a contractor submitted a lead back to us saying they called the prospect 3 times and each time were told to call after 5pm. They stated when they called after 5pm they were not able to reach anyone. We called that lead to verify as we always do and we talked to the Mrs. who confirmed that not only were they still looking for estimates on their , her husband was handling it all and would be available after 5pm. We advised this contractor to try the customer again. It's actually quite a bargain to get leads from us because we do try to go the extra mile in that we call all leads prior to sending them over and we try to assist the contractor in his/her credit requests by speaking to the homeowners ourselves.
Often times we find that the budget of the homeowner didn't meet the contractor's needs. The laborer didn't feel it was justified to even go out and perform an estimate based on the customer's base price. Now bottom line everyone wants to get something for nothing or as inexpensive as possible. Homeowners included, the trick isn't working within their numbers but more so working with their numbers. If the homeowner says they only want to spend $1200.00 to replace a couple of kitchen cabinets, it's really the contractor's job to take advantage of that opportunity to go out, meet and greet the customer and up sell them on why their kitchen would look much nicer and increase the value of their home if all cabinets matched and were upgraded equally. It's not about selling someone something they don't want, I think that's where the contractor goes wrong...they hear a price and get discouraged when really what the customer is saying is, "here's an opportunity, now show me what you're willing to do with it for me." If the contractors would be willing to enter into an agreement with consumers based on their initial price or request it would instill trust with that consumer who would then be more likely to trust the contractor when upgrades are suggested.
Another common return reason is that contractors say that the consumer decided to complete the project themselves. This is true to a point, when initially called the consumer confirms they are looking for estimates for their home improvement project, the contractor will then turn that back to us SCREAMING (literally) "THIS IS A DO IT YOURSELFER!!!" Upon calling the consumer back we are often told that the contractor was not even willing to come out and take a look, instead they basically laughed in the consumer's face and told them they should just do the job themselves for that price. It like the contractor gets offended that the homeowner is not a professional and doesn't realize how much they need to spend to get what they are looking for. Come on, these are consumers not professional builders and remodelers, they may need some guidance. Instead of utilizing this opportunity the contractor throws it away. The consumer has already determined they want the work done, now they will continue to look for someone who will take the job for the asking price or at least give them some direction as to why what they need may cost a bit more. If I want to buy something and have a budget I am more than willing to spend more if I am convinced that it is necessary. I guess what I am trying to say is "Get a sales team guys!" Or at least buy a book on selling if you are your only line of defense when it comes to persuading people to buy from you.
We get a lot of clients that say that they don't need any more business, I never got that one personally. So let me get this straight you do this as a living and you don't need to increase your profit? Nonsense! If my boss offered me a raise no matter how much I made I would never spit in his face saying, "No thanks, I make enough money!" What a stupid statement. Money makes the world go round people. These contractors I imagine will not be in business for long as that's not a very good long term attitude to have. So bottom line, contractors need to give the consumer reasons to trust their professional determinations none of which can ever happen if you don't even take the time to get to know your client and their limitations. You have to drive out to the job and "Take a Look!" Good luck in your endeavors.....~Home Improvement Guru

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