It’s More Than a Unit
Wall Street and business owners like to talk in units. Cost per unit; profit per unit; production time per unit, etc. These are all important aspects and help us increase shareholder value. But let’s face it – to the family that purchases a home, the startup company that hires us to build their first office or either that engages us to remodel their current one, we are selling much more than a product – we are helping them define their lives for many years. Our job as business people is to keep track of the units and costs – but let’s not lose sight of the entire experience that we are selling. If we can tap into the emotive part of the process and try to “think like a client” – we can increase shareholder value and build a lasting reputation.
Many of us are, by nature, what I would call realists. “It is what it is” may be our most important catchphrase. But the fierce competition that envelops us in this industry requires us to be more than an A to B faciltator. Good communication with our clients means involving them in the decision-making process as much as possible. Many production builders disguise “choice” as pre-priced “packages” and “upgrades” that leave little more than color and finish options to buyers. This is smart business in the near commodity production home building industry. Folks in this example are more than willing to walk down the street to the next community if they don’t like what they see or sense that the price/value equation is out of whack. The custom guys have a similar problem – lots of capable contractors competing for a few precious clients, different subsets of the industry and very similar end results.
That is where we must think like a client in order to differentiate ourselves. From the initial contact through an interent search engine or referral through the final sales call – what is it that differentiates your business from Joe down the street? If you aren’t selling merely on price, why should this client choose your firm? If a client signs a contract with you, what is the process you offer aside from the intended project? In other words, the Golden Rule speaks volumes in today’s (and tomorrow’s) market. Ask yourself what experience would you appreciate during a sales call? What information would you like to be given? How would you like the presentation to be oriented? (Powerpoint, bound documents, etc.) As contractors, clients are purchasing our process as much as they are the product that we deliver. This “process” we offer has boat loads of value potential in it and will make or break our companies. Do not be afraid to make a list of how you would like to be treated during a construction project and balance it against your clients’ perceptions and the perceptions of your staff. To our accountants and bankers, a project is measured by units. To our clients, the project is measured by the entire experience from the initial phone call to project completion. The value in an excellent experience is immeasurable.
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