By Rob Fanjoy
Homeowner horror stories about unscrupulous contractors are very common in this country; you see them on the local news and in the papers and they're almost always very compelling in drawing sympathy for the homeowner's plight. What most people outside the industry never see or hear, however, are contractor horror stories about "the client from hell."
Unreasonable demands, never-ending change orders, or even simply an unscrupulous homeowner looking to get something for nothing are probably just as common to contractors. The big difference is that contractors rarely air their grievances in a public forum such as the local media.
Dealing with these types of customers can be tricky–if not downright painful–for contractors. Paul Cardis, CEO of www.NRSCorp.com, a Madison, Wis.-based customer satisfaction research firm specializing in the real estate and construction sectors, says that contractors do have some useful tools at their disposal.
"Going through a building or remodeling project is often very stressful for customers," says Paul. "By properly managing the process from the very beginning, most problem customers can be turned into repeat business."
Selling it right
Paul says the customer satisfaction process starts with the sales process and the promises you make. It is very important to be sure that what you are selling matches up with what you will provide. This is not to say that the contractor may be making false promises, but that the client may not fully understand what is being promised.
"If you're selling from a model home, make sure the client knows exactly what are standard features and what are the upgrades," Paul advises. "If you're not using a model, then thoroughly and clearly explain every component, option and upgrade with as many pictures and descriptions as possible."
Contractors are not selling just products but an overall experience, according to Paul. And since projects that never experience any problems are rare, it is wise to prepare your clients with an honest look at what might quite possibly go wrong with such things as schedule delays and especially in the remodeling realm–unforeseen or hidden problems that can add time and money to a job.
"Many contractors are afraid to have those conversations with their clients, and then the clients are surprised when something does go wrong," says Paul. "The contractor might think a pre-emptive warning like this will make things worse from the start, but they should think of it as an 'inoculation.' They're giving the client a little bit of the virus to boost their resistance to any problems that may come up later."
Communication and measurement
Clear communication before and during the job is paramount to good client relations. While it may sound contrary, do nothing based on trust alone–write everything down. Have clear contracts that include detailed descriptions of what work will be performed and what will not. Any change orders, meeting notes or other job documentation should be clearly explained to the clients, and they should sign off on them so no questions arise later.
Paul also recommends that contractors have some sort of survey system and customer relationship program in place to constantly monitor customer satisfaction. It can help you from repeating mistakes and recognize potential problems ahead of time, and they can be an effective marketing tool.
"I recommend contractors use a third-party service for satisfaction surveys," says Paul. "Not as a plug for my services, but because they provide more honest results with statistical validity and reliability." To find such a service in your area, Paul recommends contractors contact the National Association of Home Builders Research Center.
Response strategy
Even if you've done everything right, the awful truth of the matter is that there will be times when a conflict arises between you and your client. Having a determined response strategy in place before trouble comes up can keep emotions from boiling over at the first sign of trouble. Knowing how to proceed beforehand helps you respond more clearly and calmly.
Paul stresses that contractors need to first express sincere concern for their client's issues and a willingness to work them out. "Call a meeting with your clients and any concerned trades and go over all the issues your customer has head-on and do your best to come to an agreement," says Paul. "It's not always about you saying 'yes' to their demands, but if you put yourself in their shoes and ask 'Would this be fair if it were my house?', then most of the time an agreement can be reached to satisfy all parties."
Sometimes, though, there simply isn't anything a contractor can do to keep a client happy. If that ever happens to you, Paul recommends avoiding court if at all possible–even if it means taking a hit to your bottom line. The financial costs of going to court are high and the chances of recovery are low, so it may benefit you to walk away with money on the table.
"You don't want a customer going hostile on you by posting websites knocking your business, posting derogatory signs on their property for the community to see, holding even small demonstrations or going to the local media," says Paul. "The cost to your reputation will be far worse than whatever money you may lose."
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