Connecting Relationships and Selling

It's a no-brainer that people want to hire people who they like and trust. And because much of remodelers' work comes from referrals and reputation, the most successful upscale companies not only do top-quality work but also build strong, enduring relationships with past and prospective clients.

Jim Cathcart, a well-known author and speaker who specializes in sales topics, calls this “relationship selling.” He has written a book by the same name, with the premise that “business ought to be a profitable form of friendship.” That description doesn't sit well with some people, but his point is that many of the same attitudes and activities that build trust between friends also apply in the business world.

“The art of business is connecting with people profitably, not merely persuading them to buy,” Cathcart says. But he also points out that the emphasis should be on the connection, not the profit. How you go about approaching prospective customers and whether or not they perceive you as someone who's just trying to make a sale, or as someone who truly wants to help them, can make or break your company.

How do remodeling companies make these connections on a consistent basis?

According to Jack Hauber of the Sandler Sales Institute in Rockville, Md., the focus on the connection has to start with the initial sales call. He says that while many remodelers naturally want to stress their skills and accomplishments, you won't make a good impression if the first thing you do is open your portfolio and start talking about work you have done for other clients. Instead, you must be 100% focused on listening to the prospect. “You need to talk about their needs, not about what you've done,” he says. “People don't care about your awards.”

That may sound counterintuitive, but when remodelers build themselves up to a prospect, the prospect may sense a hard sell coming, which can make them feel defensive. “People don't want to get sold, they want to buy,” said the late Richard Kaller, president of Certified Contractors Network of Ardmore, Pa., a consulting organization that works with local contractors. “If the consumer thinks you smell anything like a salesperson, your job automatically gets harder.”

Anthony Wilder of Anthony Wilder Design/Build in Cabin John, Md., has found this approach to be very effective. “I used to think that my job was to get my clients excited about all of my ideas,” he recalls. “But I had so many ideas that they would feel overwhelmed.” Now he tries to find out about their ideas so he can make sure those ideas are part of the project. “Asking questions and never assuming anything has changed everything for my business,” he says. “I now have 12 times the projects than I ever imagined having, and I have the clients I want.”

Shedding the sales smell means approaching prospects with the attitude that you genuinely want to help them. That's why Kaller preferred the term “consultative selling,” which he defined as “developing relationships on a consultant-to-consumer rather than a sales-to-consumer basis.” If you focus on helping people solve their problems, rather than on making a sale, then the first meeting with a prospect is a time to find out whether you're a good fit with each other and whether the job is one that your company has the skills and resources to complete. If not, then helping them find a company that's a better match will do more for your long-term reputation than simply walking away.

Robert Criner, president of Criner Construction in Yorktown, Md., has embraced this approach and has found it a clear winner. “Sharing your knowledge freely with others sets you up as an expert in your field,” he says. “Once you are seen as an expert, people will want to consult with you concerning any projects they are considering.” He also agrees with Kaller that sending a potential customer to a competitor is not necessarily a bad thing. “It lets you focus on getting the projects that make the most sense for you,” he says.

Criner is another remodeler who dislikes the term relationship selling. “I don't build relationships in order to make sales. I do so to build deeper roots in the community. In some cases, these relationships lead to work; in others, they don't,” he says. “But I have a fuller life because of them.” Having said that, he also credits the success he has enjoyed during 30 years in business to the fact that he has made relationship-building a priority. His community involvements include the local school board, the Peninsula Remodelors Council, his church, and Habitat for Humanity.

By getting involved in the community he has built a reputation as someone who can be trusted. “One of the first things we ask [new prospects] is how they heard about us,” he says. “I find that the places where I've had the longest relationships bring the most leads.” He uses the example of his involvement with the school board. “If you get in front of the community four times a year, doing good things, they come to see you in a positive light, as a competent professional.”

Once a job starts, relationship-builders put a premium on keeping the customer happy. That means they continue to listen more than they talk. Cathcart says, “If [customers] think you care, at least half your sins will be forgiven. If they don't think you care, they will be all over you like a quality inspector.”

Ken Klein, owner of Kleinco Residential, a design/build business based in Tulsa, Okla., says that the most effective way to maintain good relationships is to “be your word.” This can be as simple as promptly returning phone calls. Not calling back when you've said you would can sour any relationship.

Being your word also means completing the job on the terms to which you agreed. For instance, Klein recalls a half-million dollar job where setbacks ate up every penny of profit. But he never told the customer about the difficulties and finished the work for the contracted price.

“I authorized my people to spend whatever was needed to get the job done.” It turns out that the homeowner was aware of the problems, and thanked Klein for completing the job on schedule. That customer is now a strong source of referrals. “Essentially what we did was put $100,000 — [the lost job profit] — into marketing,” Klein says.

Klein also believes in never saying “no” to a good customer. “Last year we hauled Christmas decorations out of the attic for some of our customers,” he says. And though Kleinco Residential doesn't normally take on small jobs, it will do so for a good customer. “You want them to feel that they can call you whenever they need something,” Klein says.

Of course, the test of whether they're doing enough is how much of their business comes from past customers. “If that falls below 70%,” Klein notes, “we realize there are people we need to reestablish contact with.”

Because a relationship involves at least two parties, there are some relationships that are best avoided. Like most smart remodelers, Wilder turns down jobs for people who he senses will cause him problems.

He has learned to spot people who are likely to “dog and demoralize” him and his employees. Two signs of potential problems, according to Wilder: a house that's a mess (because “chances are they're chaotic people”) and someone who scrutinizes the price on the initial meeting.

But while everyone tries to avoid problem customers, sometimes you end up with them anyway. “We've gotten halfway through a job and decided that we never want to work with that person again,” Klein says. But he adds that once a job is started, maintaining a good relationship should remain a priority: “You never want to sour anyone and ruin your chances of a referral.” He says that this approach has paid off. “The customer from hell is often a good source of referrals because you recognized their dissatisfaction and took care of them. That is something they remember.”

That attitude goes a long way toward summing up the philosophy of relationship-builders. As Cathcart puts it: “It's not who you know; it's who cares that they know you.”

Charlie Wardell is a freelance writer in Vineyard Haven, Mass.

Practical tips for building profitable relationships.

Relationship-building is a philosophy, not a checklist. But if you keep the following items in mind, you will be more successful at putting that philosophy into practice.

Evaluate your public face. If your company sets up a booth at a local home show, do you stand in the corner talking with your staff or do you get out there and introduce yourself to the attendees? “If you're not outgoing and you're uncomfortable mingling in crowds, introducing yourself to people, and making conversation with them, then you probably shouldn't be selling for your company,” says Robert Criner, president of Criner Construction. If that's the case, you might want to appoint one of your staffers as your public face.

Follow the money. Membership in community groups can give a real boost to a remodeling business. But you have to pick your venues. “If I was an electrician, I would join the local Remodelors Council and get to know 10 contractors,” Criner says. “If I was a remodeler just getting started, I would join an organization such as the local chamber of commerce, where there are other professionals.”

Get active. Don't just join the organization, participate in its functions. And don't just hand out business cards (although you should never show up without them). Instead, make an effort to get to know people and find out what you can do for them. Also, be prepared to talk about what makes your business unique.

Keep employees focused. Ken Klein, owner of Kleinco Residential, also requires that his salespeople stay involved throughout the construction process, as advocates for the customers. And he insists that his salespeople have enough technical knowledge to do the job effectively.

Do reality checks. You should evaluate your relationship-building on every job, along with job costs and profits. “If you measure and report on the human element, then it gets more attention,” says author and speaker Jim Cathcart. Ask your job supervisors to record customer comments about the job, including what the customers say about your workers. Ask customers if anyone they know has inquired about the company. When you do get a referral, make sure you send a thank-you to the person who referred you.

Be a good neighbor. One way Criner spreads the word about his company is by introducing himself to the neighbors when starting a new job. “I tell them that if they have any questions or complaints, they can let me know and I'll take care of it right away. It builds a lot of goodwill.”