Good Guy or Bad Guy? The choice is yours

Our industry unfairly forces builders to provide the hard truths clients often don’t want to hear. But you don’t have to be the bad guy. See how to help clients trust you – without the grief.

PROCALC REPORTS COMPLETED
TOTAL BUILD VALUE
Book ProCalc Free Trial

Historically, builders have always informed a project with the most accurate construction estimate.

After all, you build it.

But that’s created a dynamic where some in the industry leave it to the builder to somehow align scope and budget – after the design is complete.

This approach creates dramas for builders and clients at various stages throughout the project where the builder needs to educate the client.

Below are three scenarios that historically set you up as the bad guy.

But, if you play them the right way, you can help clients solve their problem – and win the job.

Bad Guy Scenario 1: Budget Reality

As we mentioned, most clients get a shock when you first give them a feasibility estimate.

In fact, about 70% of them get a real fright so changing this dynamic can revolutionise a builder’s conversion rate.

The first step is to help clients understand that this isn’t about you being greedy.

Construction pricing has risen roughly 50% in the last couple of years (depending on which state/locale you’re in) and you’re pricing is driven by forces you can’t control.

You can do this over a coffee and have a red pen handy to delete the items they’re prepared to lose from their scope.

To make this conversation easier, you can use ProCalc (in 15 mins) to generate an industry price for their project, so they understand it’s not you.

Then, if they freak out, you can ask if they’re open to striking out some items then re-costing in ProCalc (in 5 mins).

The moment they agree to that approach, they’ve become your client.

You handled it professionally and they trust you to land their project.

Run a Project Through ProCalc (free)

Bad Guy Scenario 2: The Sleazy Salesman or Trusted Expert?

From time-to-time, builders can get a bad rap, so you need to help client learn to trust you.

Paradoxically, our research shows, the best way to help clients build trust and treat you as an expert is to charge them for your very first meeting.

Charging them even a small fee will shift the clients thinking from you ‘selling  them’ to receiving advice from an expert.

That means you’re not the salesperson but a trusted expert who’s helping them solve their construction query.

This approach makes you the preferred builder, eliminates tyre kickers and builds trust.

If charging for the first meeting seems like BS or freaks you out, see how at How (and Why) to Charge for Pre-Build Engagement

Bad Guy Scenario 3: Variations – Unmanaged

How often do clients change their minds for your projects?

Just as the sun will rise tomorrow morning, so will clients request variations.

The problem isn’t the request.

Instead, it’s how you manage their request.

If you don’t immediately give them clear expectations about the process and cost to implement the variation, you’re in for a world of pain.

If their request comes during the build, give them figures quickly so they can then approve or reject the variation to avoid project delays.

If a client requests a change during the pre-build conversations, use ProCalc to set clear expectations about what impact the change has on cost. Run a Project Through ProCalc (free)

Doing this helps them understand that variations ALWAYS impact price and timeframe.

We believe it’s entirely unfair for builder to be portrayed as the bad guy.

Using these steps will help clients better understand the value you bring to their project – without the grief.

You Might Also Like:

Richard Armstrong is a former registered builder who recently interviewed hundreds of experienced Australian builders to identify how they best manage clients, budgets and profitability.

14 signs you under-quote & what to do..

If you’re busy but never ahead, your pricing—not your workload—is the likely issue. Under-quoting quietly drains cash flow, increases stress, and locks you into working harder for less. But it’s not sustainable. Here are 14 signs you might be undercharging, and what to do…

Iran Oil Crisis: Cost Impacts for Builders

Australian home builders are entering another period of targeted cost pressure, driven by the emerging Iran oil crisis. Plumbing, electrical preliminaries (fuel-driven costs), freight/imported components, concrete and slab-related works all look likely to escalate. Here’s how to protect your profits.

Winning Jobs – 16 Pro C.R.M. Tips

A CRM (Customer Relationship Management system) is an automated communication system that builds trust, filters clients, and positions you as the expert before price enters the conversation. Check out these 16 pro tips to win the best jobs…

Builders:10 Pro Tips to Smash Referrals

When 50%+ of enquiries come from referrals your profits skyrocket. But asking for referrals can feel awkward. When do you ask? How do you ask? What if they say no?

Instead, use these 10 pro tips to drive rejection-free referrals.

6 Builder Hacks to Stop Wasting Time.

Wasting time wasn’t part of the plan. But it’s probably happening. You’re flat out. Quoting. Chasing clients. Solving problems. Maybe try this….

10 First Meeting Screw Ups that Cost Builders

Your first meeting with a prospective client sets up the success of a project. Get it right and you grow profits with happier jobs. Get it wrong and you’re in for a world of pain…

Tired of losing jobs you quote?

It’s not until you analyse your quoting system for time and money wasted that you realise how costly a ‘leaky’ quoting process is. Here’s how to quote ONLY the jobs you’ll win…

5 Hidden Costs to Builders When “Clients Supply” Fixtures

It can feel awkward turning down the client’s request to supply fixtures – especially if you haven’t yet won the job. What to do…

Best Business Podcasts/Videos for Builders

Checkout these hand-picked podcast/video series for builders to help you grow your vision, your business, your profits and your team – successfully.

Cost+ Contracts – The Good, The Bad & The Ugly

Roughly 1 in 8 builders currently use Cost+ contracts; primarily to manage cost escalation risks. We reveal their pros/cons – which might surprise you…