Change Your Sales Process and Estimating Approach: Old Against New

Contractors who employ old techniques waste time and money. In the latest Hammer and Grind podcast, we discussed how improving your estimating and sales process may transform your business. This article combines key principles with actionable steps to transform your business.

The Old Way: A Time and Money Sink

The traditional method of handling leads and estimates is not only outdated but also inefficient. Here's a quick rundown of the old process:

1. Lead Comes In: You receive a lead through various channels.

2. Initial Call: You call the lead to pre-qualify them, often asking about their budget and timeline.

3. Site Visit: You schedule a time to visit the site, spending anywhere from 20 minutes to an hour or more.

4. Estimate Preparation: You return to your office and spend 1-8 hours preparing an estimate.

5. Deadbeat Line: You send the estimate and wait, often finding out that the client is not interested, leading to wasted time and effort.

This process can take between 2 to 10 hours per job, costing you anywhere from $400 to $2,000 in lost opportunity costs per job that doesn't convert.

The New Way: The Profit Sales System

The new method, dubbed the Profit Sales System, aims to streamline this process, saving you time and money while increasing your conversion rates. Here's how it works:

1. Initial Contact and Photos: When a lead comes in, ask them to send 2-3 photos of their project. This helps you get a basic understanding of the scope without a site visit.

2. Discovery Call: Schedule a 20-30 minute phone call to ask calibrated questions. These questions help you understand the client's needs, timeline, and budget without directly asking for it.

3. Ballpark Estimate: Provide a ballpark estimate based on similar projects you've done. This helps gauge the client's budget and willingness to proceed.

4. Paid On-Site Consultation: If the client is within your budget range, schedule a paid on-site consultation. This not only qualifies the lead but also compensates you for your time and expertise.

Benefits of the New Way

• Time Savings: By pre-qualifying leads over the phone, you save hours that would otherwise be spent on site visits and preparing estimates for non-serious clients.

• Increased Revenue: Charging for on-site consultations ensures that only serious clients proceed, increasing your conversion rates.

• Better Client Experience: Clients who pay for consultations are more likely to value your time and expertise, leading to a better overall experience.

Action Steps

1. Implement a Discovery Call Process

Start by integrating a discovery call into your lead qualification process. Use this call to ask specific questions that help you understand the client's needs and budget without directly asking for it.

2. Provide Ballpark Estimates

During the discovery call, offer a ballpark estimate based on similar projects. This helps set realistic expectations and filters out clients who are not within your budget range.

3. Charge for On-Site Consultations

Transition to a paid on-site consultation model. This not only compensates you for your time but also ensures that only serious clients proceed to the next step.

Conclusion

Updating your estimating and sales process can have a profound impact on your business. By adopting the Profit Sales System, you can save time, increase your revenue, and provide a better client experience. Don't let outdated methods hold you back. Implement these steps today and watch your business transform.

Resources

Join my free Facebook group for Contractors: https://www.facebook.com/groups/contractorprofitblueprint

Free Sales Guide: https://theprofitclub.hammerandgrindpodcast.com/sales-training-optin

Profit Journal: https://www.lulu.com/shop/brad-huebner/profit-journal/paperback/product-ype4j9.html?q=profit+journal&page=1&pageSize=4