This summer, we released our annual Homeowner Sentiment Report findings, resulting from a recent survey of more than 23,000 homeowners. It includes a unique set of questions about how homeowners find contractors and do research. Download the ebook for the data and actionable insights.
When talking to potential leads, you will find a common theme: no budget. According to our Annual Homeowner Survey, 83% of homeowners did not create a budget for their project. And of those that did, most were not confident in it.
As a home improvement contractor, you can adjust the marketing and selling process to support the needs of unprepared homeowners to motivate them to move forward with the project.
In the beginning, qualify your leads. Ask questions to gather information about their goals, how much they know about the industry, and whether they are ready to spend the money necessary for quality services. You need to know what they know so you can fill in the gaps for them.
You do not have to start by talking about cost upfront. Instead, discuss the size, scope, and homeowner preferences for the project. During this conversation, you can point out design features at different price points, helping each homeowner see that there are options to fit their budget.
Once you have established a rapport with the homeowner, discuss more information about the cost and their budget. You need to know how much the homeowner is willing to spend on home improvement services.
You don’t have to compete in the home improvement industry by trying to be the cheapest provider. Not every homeowner is as concerned about price as they are about your company or the finished project itself.
Establishing value in the services you offer is a higher priority. When homeowners capture the vision of the long-term benefits they are receiving, they will be more confident in spending the money necessary to ensure quality.
Prove the value of the project, and homeowners will be more willing to spend the money. One way you can do this is by sharing testimonials and before/after photos of completed projects.
Walk Them Through the Budget
Now that you have qualified the homeowner and established the value of your services, it is time to break down the budget details. Remember that you are the industry expert; have confidence as you share information about the costs and options.
Be proactive with your communication. When you are thorough, you build a foundation of trust. Take the homeowner step-by-step through all of the costs associated with the project. If they are hesitant about the price point, then you can be ready to offer alternatives to reduce certain costs.
Also, be sure that the terms of the contract are easy to understand. It is a priority to ensure that everyone is on the same page so there are no misunderstandings about the scope of work, cost, and the services you will deliver.
Building Confidence with Uncertain Homeowners
When homeowners are considering the possibility of spending a lot of money on home improvement projects, it is no surprise that they are hesitant about the cost. As a contractor, the best thing you can do is build a relationship with each person, so they trust the information you are sharing.
If a homeowner is uncertain or worried about the budget, follow this process in the sales funnel. Always qualify them first by discussing their goals for the project. Then, move forward by establishing the value of the services you are offering and a breakdown of the cost. Open communication is key to building a solid rapport with potential customers.