By Daniel C. Brown
October 31, 2006/—Forget the stereotypical sales person with the huge grin, glib spiel and ready handshake. The real secret to success in remodeling sales is the ability to relate to the client and enough imagination to see what they see in their project.
"The salesperson's personality is a huge factor," says Linda Evans, a designer and sales person for Square Deal Remodeling Co., Portland, Ore. "You have to be able to listen, you have to be able to interpret, and you have to have vision. You have to paint a picture for the homeowner, and you want them to get the picture."
Evans knows what she's talking about: both her sales and the company's have risen steadily in recent years. Other designers try to force their plans onto owners, but not Evans. She recommends listening and guiding homeowners, with an eye toward enhancing their ideas.
Owners always have a budget, so the remodeler needs to remain flexible in selecting materials and appliances—even after the contract is written. Square Deal aims to write contracts with medium price points, so that costs can be adjusted lower to meet a budget or higher for upgrades. "I've been waiting for somebody to throw their checkbook at me, and it hasn't happened yet," Evans says.
When Evans gets a sales lead and calls the prospect, she works to qualify the person's budget right away. Square Deal designs its projects, and kitchen remodels last year sold for $70,000 to $135,000 with no appliances included. "I'm not going to do cheap business," Evans says. "I never low-ball a price just to get a job."
If the initial telephone call results in an appointment for Evans to see the owner, the company sends the prospect a packet of information. The packet contains a letter confirming the appointment, a list of references, a one-page newsletter highlighting one of the company's projects, and Evans's business card.
"You would be surprised at how many people tell me it was refreshing to get a letter confirming that appointment," says Evans. People often tell her that remodelers just don't show up for appointments. Evans is punctual, and her sales calls can last two or three hours.
The showroom does the talking
Owning a kitchen-and-bath showroom helps sell business for Gary Knight, president of Knight Construction Design Inc., a Chanhassen, Minn., remodeler. It's easier for clients to picture their own finished project when they can see and touch products that might be used in it. "We have eight kitchens on display, and a couple of bathrooms," Knight says. "I think it helps sell a lot of people."
He doesn't recommend that every remodeler own a showroom, though. It is expensive to update, which Knight does every few years, but Knight says it pays for itself. The showroom is an asset that belongs to the business, and it will be sold as part of his plan of succession.
Like Square Deal, Knight works to qualify prospects on price early in the sales process. About half of prospects think Knight's initial estimates are too high, so they walk—but a number of them come back because they have a good personality fit with Knight, or they find that his estimates are on the mark.
"A lot of times I tell them we need plans to get accurate pricing," Knight says. He writes a design contract that is separate from the construction contract. Plans typically cost between $750 and $3,000.
Knight also strives to identify "undesirable" clients during the sales process—and to avoid working with them. "Some people want something for nothing, or they have attitudes, or they are too demanding," he says. "Some people you don't want to work for. I think people buy from somebody they like."
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