Belief in the Win-Win
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Win-win. It’s a phrase that gets a lot of lip service -- but little sincere reflection.
I’ve seen articles in the New York Times and the Boston Globe in the past year basically telling homeowners that now is the time to get the better of contractors.
Here’s my belief: 99% of homeowner-remodeler relationships that start off with one party expecting to be on the winning side of a win-lose relationship will end up being a lose-lose.
Contest? Game Over
You’ve been there. You visit a homeowner (usually a male) who feels the need to flex his muscles and let you know that no contractor is going to get the better of him. Even if he's not so overt, you sense a certain standoffishness. He believes it’s a contest…either the homeowner wins or the contractor does. A win-lose.
There’s also this more benign but still misguided consumer who thinks now is a great time to remodel because low demand means more competitive pricing. Another win-lose.
(Besides, they figure, contractors had it too good for too long, and it’s about time they lost.)
I’ve sensed this win-lose expectation from prospects at initial meetings, and I see it as a major red flag. My response? Call them on it.
“Mr. Jones, do you believe there’s a possibility for a win-win here? Do you believe it’s possible for you to receive great value AND for me to earn a reasonable 10% net profit?”
“Yes” or “Absolutely yes” or “Of course” are all acceptable answers in order for me to continue the meeting or consider bringing them on as clients. “No” or silence or staring at the floor and stammering are not just red flags, but baseball bats upside the head.
So I respond this way:
“Thank you for considering us for your project, but I don’t think there’s a fit between you and our company.”
I once ignored a huge red flag that was blatantly waved in my face. “Yeah, he can’t stand to see someone make a buck,” a wife said about her husband. I still went ahead and signed that contract. I was lucky he only stiffed me for $13,000.
Besides, it’s a law of nature that the projects with the happiest clients will be the most profitable.
Greg Antonioli is the president of Out of the Woods Construction & Cabinetry, a Massachusetts design/build firm that is committed to open-book management, a team-driven approach to decision-making, and a great relationship with homeowner clients. He blogs for REMODELING every Monday and occasionally on Thursdays as well.
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