Profit BusterWe typically can collect significant profit margins on the sections of the project the clients usually want to do on their own: drywall, carpeting, flooring, and painting. If we allowed them to take over these parts of the remodel, our accounting would have to be significantly adjusted, and we might not recover costs on the job.
Beyond the markup issue, profits can be affected by disorganized clients. There is no one keeping an eye on what they are doing or when they are doing it. And if they don't keep on schedule, the job will be delayed, costing us money and man hours. The argument that ensues over the bill (for the delay) is enough to convince me that it's better if my crew handles everything.
Issues can also arise over liability. If problems arise in the future because of improper installation, it is hard to pinpoint fault, especially because you have no idea if the person who does that part of the job is insured or licensed to do that type of work.
Red FlagIf a customer has a huge problem with not being able to do the work themselves, it can be a good indicator that we would not have a good working relationship anyway. I usually tell them that we are offering a professional and comprehensive service and we can't compromise our method. You can then tell if they want to work with you to get the best outcome possible or if money is the only factor. If they are going to insist upon doing some of the work themselves, we tell them that we appreciate their enthusiasm but we are not the best candidate for a “blended” project.
Robert James Waller IV
Waller Construction
Lakeland, Fla.
Big50 2001
Hands On is Right OnThe project areas that we get the most complaints and callbacks on are those that the clients most often want to do themselves. The paint doesn't look like they thought, the carpet doesn't match the bedspread as perfectly as they wished it would, or they think the carpeting guys ruined the paint job. I encourage clients to take on these areas as a way to eliminate the manpower needed to handle these final details. The project wraps up neatly and the client is happy; we are out of their house quicker.
If the client wants to handle larger aspects of the project, such as the electrical work, I explain that my contract will not guarantee any work done outside my company. I will schedule a time for the work to be done within the project and keep on them about the deadline, just as if they were a subcontractor. Often, if the client is hesitating about the price, I will advocate this as an option as a way of trimming the budget. That way, we don't lose a sale, and we develop a good reputation as a flexible company.
Relationship BuilderMany of our clients work hard during the week and want to spend the time on their weekends cutting trim or otherwise working with their hands. They can't handle a whole remodel, but to them, using a saw or holding a paintbrush is a great stress reliever. Giving them that option is a good way to ensure a solid bond and a future relationship that could be mutually beneficial. Because our contract is clear as to what our responsibilities are and aren't, I have no problem allowing the client to do some of the work themselves.
Gary Eichhorst, CGR
Eichhorst & Company
Spring Grove, Ill.
Big50 2001