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Last modified: 2022-02-14 | Approximate reading time 4 mins
Gaining clients for your renovation business is one thing, but sealing the deal with them is another. Business deals and discussions surrounding money or possessions are often uncomfortable and awkward, but they don't have to be!
Knowing the right way to speak to homeowners about your renovation business is crucial to closing potential contracting deals. For this reason, RenoQuotes.com has compiled some advice for you to follow so you can rein in contracts without the interaction being troublesome.
Once the client has told you what they're looking for exactly, address these needs directly by way of positive solutions. Does your business model have a unique selling point? Potentially you offer low-cost or premium services?
Regardless of your selling points, stand behind your brand from the beginning. If your model suggests a low-price point, address the excellent value of your services and relate it back to how the renovation will improve the quality of life of the client: "for only X-amount, you could have the bedroom of your dreams!".
Make sure to be completely realistic regarding the overall cost of a job, as the number one way to piss off a client is to promise low-cost service but charge them more upon finishing. On the flip side, if you are running a premium contracting business, assure the client that they won't be able to find another service as good as yours!
Offer something that can't be found elsewhere, whether that means a fair price or a rare service, and relate it directly back to their individual needs. This step is key to getting a prospective client to gain interest, potentially bite and move forward with the deal.
It is important that when attempting to close a deal with a client, you are not too pushy. Appearing initially aggressive in any way is likely to alienate the customer. As a contractor and business owner, you want the experience of working with someone else to be as positive as possible, especially when dealing with a homeowner who is trusting you with their personal space. It is necessary to take a soft approach when interacting with customers.
Adopt a sense of soft confidence, and convey your knowledge of the business as well as the success rates of your previous renovations. Any form of desperation or pushiness will come across as though you're lacking elsewhere, and you surely don't want your client to think that you need to book their job desperately! Maintain certainty without coming across as cocky, and the client will react positively.
source: Flickr, KMR Photography
Do not be afraid to mention money upfront. Since business is business, and all business deals involve money in one way or another, it is important to be direct regarding costs. Get the initial mentions of money out in the open by bridging the subject yourself.
This way, the client doesn't feel the need to awkwardly skirt around prices and amounts. If the customer is requesting concessions based on the prices you offer, attempt to close the deal by agreeing to their terms if they'll sign immediately.
For example, state "I recognize where you're coming from regarding the price. If I negotiate on your terms, can we close the deal right away?" This approach, often referred to as a sharp angle close, could help to land you a job and solidify costs rather than wasting the time of both parties trying to debate and negotiate.
Closing a deal can be made simple with the "in your opinion" approach. If you are finding yourself and a client moving back and forth regarding pricing and timelines, simply ask them for their opinion: "In your opinion, what could I do differently to help you feel comfortable closing this deal?"
Moving away from the hard facts of a contract to the opinion of a client allows them to shift their hesitation and refocus. Adjusting your presentation based on customer questions and feedback is essential.
Also, always try to relate the renovation back to emotional responses rather than hard facts. Getting to the root of the problem on an emotional level is important to move beyond the place of negotiation. If you can offer ways to improve in order to fulfill their wishes, the client will not have much to contend with. Making the homeowner feel reassured about their plans and comfortable working with you will help to finalize the contract that much easier.
If you have a returning client with a new project, and you feel relaxed with them, there are a few approaches you can take which may not fare as well with newer clients. The objection approach is the softest method of the three. Once most of the contract has been discussed between yourself and the client, go ahead and ask: "is there any reason we can't proceed?"
This question allows the homeowner to raise concerns without a flat-out no for an answer. Newer customers may find this approach discouraging or aggressive, so make sure to gain a sense of the situation without pushing forward with this method.
The assumptive close is also best to attempt when you know a client well enough. This method is straightforward, and all it takes it the assumption that the homeowner is ready to do business with you. After ironing out all the details, hand the client a piece of paper with everything outlined, and wait for their signature on the dotted line. Hopefully, if you've judged the situation right, there won't be much room for discussion and this method will play out smoothly.
The final approach is the most to-the-point, often referred to as a direct close. This is a closed-ended, yes or no question, something along the lines of "So, we are agreeing to move forward with this contract?" This method is most effective If you are confident that the answer will indeed be "yes", so proceed with both caution and confidence.
RenoQuotes.com can help you get home renovation contracts. We get requests from clients looking for trusted home renovation professionals just like you. Fill out the form on our homepage (it only takes a few minutes), and you will receive information on how to get new clients for your renovation company through our service.
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