Start 2018 By Learning Tips from the Pros on Having Budget Talks with Homeowners

Anyone who’s worked in the construction industry likely knows that homeowners often have inaccurate ideas of how much their project is going to cost. As a result, it’s important for you to have a base understanding of what a client is actually willing to spend before you spend hour after hour coming up with designs and bids.

In a perfect world, you’d simply say, “What’s your budget?” and they would give you a full answer. While they often won’t answer that, even when they do, what they’re really telling you is what they think the project should cost – not what they’re actually willing to invest in. Read on to learn how to have these tricky conversations – and get real answers. Remember to keep your costs low and quality high by choosing Grove Hardware as your job site supplies suppler.

Share information about previous projects you’ve worked on

One of the best ways to show credibility for your company and the estimate you’re proposing is to share other projects and their cost. This isn’t something the homeowner can argue with because it’s simply what another person paid for similar work. Sharing these examples can have a big effect.

Try showing two projects that are within the appropriate range for the job they want. Then ask them if they are interested in investing within the range of both projects. Of course, you’ll need to make sure that the projects you choose cover most possibilities the homeowner seems interested in.

Come up with a budget before you agree on the scope of the project

The client will want to talk about the scope of the project before they talk about the budget. Steer them away from this. Don’t share details or renderings of potential projects until you get a general idea of their budget. Why? Because there’s no better way to lose a potential client than by showing them exact replicas of what they want, only to later have to tell them the cost would be double their budget.

Discuss specific price ranges if necessary

If the homeowner still seems unconvinced, then consider explaining the price range between specific materials. For example, show them tiles on the cheap end and on the expensive end. Offer toilets that are cheap and ones that are expensive. Once they have a better idea of the range of costs associated with each of the materials, they’re more likely to understand the true costs.

Show that you’re working with quality materials

No matter what type of job it is, no matter what their budget is, your clients want to know that the work you’re doing is of high quality. This requires you to do the job right but it also requires you to use high-quality materials. Let them know that you work with a local construction supplies company, Grove Hardware, and that we can provide the quality they need. If you have questions about products, feel free to stop by or call us at 909-544-4331.