July 28, 2025 • 16 mins
Strategic pricing based on lead sources and client types can dramatically improve your contracting business's profitability and success rate. We explore how to tailor your approach and pricing for homeowners, investors, and agent referrals to win more jobs and maximize your margins.
• Three main types of residential clients: homeowners (focused on quality and experience), investors (driven by price and ROI), and agent referrals (reputation-focused)
• Homeowner clients need guidance on the "contractor's triangle" of time, quality, and cost—they can only prioritize two
• Understanding why homeowners are renovating helps determine appropriate upgrades and pricing
• Referral leads deserve mid-to-high range pricing as they already trust your value proposition
• Google/internet search leads need competitive pricing with emphasis on process and communication
• BBB leads often come from clients with higher expectations who need more reassurance
• Paid referral services like Angie's List typically require the lowest pricing and fastest response
• Tailoring your sales approach to each lead source dramatically increases closing rates
• The key is building your estimate around what each specific client values most
If you want to learn more about optimizing your contracting business, visit ProStruct360.com and schedule a 30-minute conversation to see how our coaching and software can help your company become more efficient and profitable.
Have a question or an idea to improve the podcast?
Email us at team@prostruct360.com
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Visit our website at ProStruct360.com
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Welcome to Contractor Cuts, where we cover the good,
the bad and the ugly of growinga successful contracting company
.
Welcome back to Contractor Cuts.
My name is Clark Turner.
Thank you for joining us againthis week.
So today is another CoachingCuts episode.
So what we are talking abouttoday are lead sources and types
(00:24):
of leads that you're getting in.
Where should your price pointbe, depending on where the lead
comes in, and how do we buildthose estimates around the
specific lead to make sure wecapture as many jobs as we can?
So let's talk about that.
So, first off, there's going tobe three different types of
main leads in residentialcontracting.
Number one you've got yourhomeowners.
(00:45):
You've got the people that areimproving for, maybe to live
there forever, to live in thehouse, or maybe they're trying
to improve it to sell in fiveyears, but they want to enjoy it
while they're living there.
Understanding the process andthe reasoning behind what
they're doing is going to helpyou determine what the estimate
should look like.
Right, if I am trying to buildvalue in the property to where I
(01:06):
know that they're going to sellin five years, I'm not going to
be doing some of the upgradesthat they might want, and so I'm
going to help guide themthrough.
Hey, if you're selling, let'sonly do things that return us a
return on investment.
When it comes to the property,I like to assess the
neighborhood.
I like to assess what kind ofthe top value of the property in
the neighborhood can be.
If they're in a neighborhood,maybe get a realtor involved
(01:28):
that they have one that might belisting the house in four to
five years whenever they'relooking to sell.
But I need to know where isthis money going?
Do they need the money back outin five years, or is it the
building and renovating the hometo be their permanent place?
Right, if they are not evergoing to move, it doesn't matter
if they're spending money onsomething that might not be a
(01:48):
good ROI.
What's important is that thathomeowner is getting the exact
property that they want to livein.
So first, understanding that onthe homeowner side helps you
guide them, helps you lead them,helps you be an advocate for
them as they are building anddeveloping the estimate and kind
of the scope of work that we'redoing out there.
But for a homeowner, thesepeople are looking for
(02:10):
perfection, really good quality,really good communication, a
lot more of a experience thannecessarily the bottom dollar,
the cheapest cost.
Cost is important, right.
But when we talk about the bigthree and the triangle, you've
got your time, you've got yourquality and you've got your cost
right.
But when we talk about the bigthree in the triangle, you've
got your time, you've got yourquality and you've got your cost
right.
And which two of those do youcare about?
(02:30):
Right, if I want high qualityquickly, it's going to cost a
lot.
If I want low cost but highquality, it's going to take me a
long time.
Right, you can pick two of thethree.
You can't have all three at thesame time.
So with a homeowner, I'mthinking through that.
Which one of those two of thethree things do you want and
which one of those are you goingto sacrifice?
Once I start having thoseconversations, this isn't me as
(02:54):
a contractor, selling them aproduct.
This is me helping them achieveand build exactly what their
dream is and what their visionis, and helping them kind of
realize what that is.
Now, investors if you have aninvestor client coming in,
that's totally different.
It might be a fix and flip.
It might be someone building torent or buying to fix and then
rent and turn into a rentalproperty.
There's a number of reasonsthat investors are in there, but
(03:15):
number one for an investor isgoing to be price point.
Right.
If they've got a offer in on aproperty and they say I've got
$85,000 to renovate thisproperty or it's not worth it on
paper to buy, obviously I'm nowworking backwards on how do we
get this property done for$85,000 or less, right?
And so the quality and thespeed.
They might probably care aboutspeed and they want decent
(03:36):
quality, but we don't havesomeone, a homeowner, living in
it, so they're okay with cuttingsome of those corners to be
more focused on how quickly andefficiently can we spend that
money and get in and out so theycan list the property, get a
renter in the property, but,more importantly, I want it safe
, I want it looking nice, but Idon't need high-end finishes.
I really want the best bang formy buck as an investor.
(03:58):
Last group of people that you'regonna be probably working with
are agents, whether it's a realestate agent that's referred you
business, an insurance agentthat's referring you business,
any sort of third party that isrepresenting that customer or
the owner of the property andconnecting them to you.
Now, these clients, what wecare about is carrying their
(04:22):
reputation right.
When a real estate agent offersyou up as a general contractor
to their customer, they careless about price, they care less
about speed, they care lessabout quality.
Even.
They care most about youprotecting their reputation that
you're not going to screw theircustomer, that you're going to
take care of them and thatyou're carrying the mantle of
(04:42):
this real estate agent.
Put their name on my back andso I've got to act accordingly,
right?
So, with whether it's areferral from insurance and an
insurance agent saying, hey,this is a contractor that I
definitely use for, maybe putback.
Or a flood, or a real estateagent saying, hey, I know you're
buying this house, this is areally good contractor that does
kitchens, you should call theseguys.
(05:02):
No matter what, the number onething I care about is a customer
experience at that point,because whatever I do, or more I
don't do, it's going to reflecton the person referring me that
business and if that happens,that water source is cut off,
you have no more faucet ofincoming jobs from that real
estate agent or their insuranceagent.
(05:23):
So those are really the threedifferent apps.
Now that person again, it'sgoing to be more of a homeowner
when we're looking at qualityversus the price, versus the
speed.
But, more importantly, thosethree things, like I said, when
it's a third party referral, Icare about the experience and
carrying that person's namealong with me that they've put,
(05:44):
that they stamped on my backsaying, hey, these guys are good
, you should use them.
Um, I'm really doing it, a tomake that client happy, but also
for the next 20 jobs that theymight refer to me.
I want all of those jobs thatalso come through our door.
So that's the three differenttypes of main types of clientele
that you're going to get on theresidential side.
Now let's talk about referralhow to bid price-wise for
(06:08):
different types of lead sources.
Number one the biggest leadsource that we want is a
referral from somebody else.
We want a referral from anagent.
We want a referral from someonethat's used us before.
We want to repeat customer.
Any sort of referral wheresomeone stamps their name on you
and says, hey, I've used theseguys, they're awesome.
(06:28):
Hey, these guys did myneighbor's house and it looks
beautiful, you should use them.
Any sort of referral leadsource.
What my price point is going tobe medium to high, like what my
value is is they understand itand so I don't have to upsell
them and show them how how goodmy value is.
On my sales side I've alreadyin the door with these guys are
good, they're quality andthey're worth paying a little
(06:48):
bit more for.
So on a referral lead, I'mgoing mid to high range of my
price points.
Again, I'm I'm understandingthe quality, what they're
looking for, but I don't have todiscount it down to try and
land it, because they're usuallynot bidding against too many
people, sometimes against nobody.
So referrals are my favoritelead sources because, a it's
built in, they trust me, and B Iactually can charge our value
(07:14):
because they're willing to payfor the value, because they've
seen the value from somebodyelse.
All right, my next tier down forreferral, my second best
referral, is an internet searchfinding you through Google.
Maybe you got some Google adsrunning or a Facebook ad, but
it's someone coming in findingyou on the internet.
They might visit your websitefirst, might see your Google
page first and then call you up.
(07:35):
Now, this person you'reprobably bidding against three
or four other contractors.
They don't know you from Adam,but they also love what they saw
on your website.
It was a good presentation.
It seems like you're doingprojects that's right in their
wheelhouse that they're lookingfor, and so this is going to be
my standard pricing.
This is my mid-grade.
I've got to be competitive withmy price, but also I've got to
(07:56):
earn their respect and show themthat they can trust me.
So this is where I lean moreheavy into the client engagement
agreement that we do, where Itry to get them sitting in front
of me in a computer to do a CEAclient engagement agreement as
soon as possible, because themore value I can build on the
customer care, on our processes,and I show them behind the
scenes of how we operate,they're more willing to trust me
(08:18):
.
And normally these guys don'tgo with the highest price or
lowest price.
They want to go with themid-rate guys.
So I'm going to give them mybest price first time, every
time, and I'm not going to putany fluff in it.
I'm going to make sure it'saccurate and exactly what I want
to be charging.
But on the referral fee you canhave a little more fluff to be
able to spend a little extra.
Buy them a bottle of wine atthe end of the job and say, hey,
thanks so much for working withus and go above and beyond,
(08:41):
because you've got a little bitof padding built into that.
But with a Google, with aninternet lead that comes in,
someone fills out a form on yourwebsite, we need aggressive but
accurate pricing where we cutthe fluff out and we walk them
through.
And we really got to build alot of value in us being their
advocate, being theirrepresentative, saying, hey,
listen, I'm going to renovatethis property Like it's my own.
(09:02):
What if we spend your moneydoing this?
What if we do that?
And so I'm spending a lot moretime on sales, showing them how
we operate, showing them how weas a company, how they're going
to experience this company, how,what if I can help them
envision what this renovation isgoing to be like for them in
the midst of the stress andchaos, and show them how we
(09:23):
handle that and what they canexpect.
Then they start building thattrust with you and they're going
to go with you.
But again, price points alittle more important to this
person than maybe a referral.
A referral, uh, that you gotfrom somebody, all right.
The next level down from thereis like a, b, a better business
Bureau.
You know that's a, that's alead source that I separate out
from Google.
Whenever I see someone comingfrom our BBB page, they've you
(09:47):
know, we've got an A plus on onbetter business Bureau.
But these leads have higherexpectations.
They are the ones checking BBBbecause they care about not
getting screwed, about havingsomeone that does what they say,
and that's great.
We're that company, we are Aplus on that.
But I'm going to build in alittle bit more fluff because
(10:08):
it's going to be needed Withthis type of a client and when
they're coming from BBB.
Again, this is a generalization.
If you find companies on theBetter Business Bureau and
you're not that way, pleaseforgive me, but for the most
part, clients coming from BetterBusiness Bureau in my
experience have a higher levelof expectation, higher level of
(10:30):
perfection and a higherexpectation of communication,
which they should expect it fromus.
But I also need to make surethat I'm building in enough
money to be able to hold themmore hands.
Right, I've got a.
I'm going to spend more timewith this client than I would
just a referral and building thetrust and holding their hand
and verifying everything.
A lot of times these are peoplethat have been screwed and
(10:52):
burned by contractors, sothey're trying to do all their
due diligence to find the bestof the best.
So I'm going to have a littlebit higher of a price point for
this client.
But, that being said, I'm goingto do my same stuff.
My client engagement agreementis really tempering their fears,
going through their walkingthrough the estimate, really
helping them feel like Icommunicate, I'm a big advocate
(11:14):
for them and I'm a leader ontheir project.
Right, those are our three bigtenets of our core values
communicate, advocate and lead.
And I'm showing them and tryingto impress them with all of
those things happening before weeven sign a contract.
If I can get them to do that,that higher price point is going
to give me more budget to justcover things when they go wrong.
(11:34):
But yeah, the BBB referrals isa special one because there's a
lot higher of an expectation andthey're willing to pay a little
bit more usually for the reallygood service that they're going
to get from an A-pluscontractor.
That's on Better BusinessBureau, all right.
The last kind of referral sourcethat can be coming in are the
(11:55):
paid referrals, like Angie'sList, all of those type of paid
referrals where you're literallypaying to get someone's name
and number.
I hate these.
We don't do these.
I understand companies that aresmall, just getting going
trying to get something in thedoor.
They might have to go this way.
I've not found it valuable.
I've not found it worth it.
(12:15):
Some people have.
I've talked to guys that loveit and that's great.
That's great for a GC.
It's a lot more difficult ifyou're a, if you're a tradesman.
Sometimes it's easier on theAngie's list because you're uh,
you're kind of the base baseprice.
But when we were on Angie'sthey were giving us all sorts of
leads and selling us all sortsof leads and I think we landed
one out of 10.
Because a lot of times peopleare looking for the lowest,
(12:38):
cheapest price and they'reselling that client information
to five, six, seven differentcontractors to hunt that person
down.
So what's difficult about thosetype of leads is that it is a
price point game.
It is a speed game.
It's who can get there first.
It's who can start impressing.
It's like it's like a speeddating, right Like I've.
It's not a one-on-one datewhere we figure out if we work
(13:01):
well together.
I've got 30 seconds to impressyou or not.
I've got to jump on the leadright away.
I got to be ready to jump in mycar and come to the estimate.
It's a lot more of a groundgame.
It's a lot more of almost outof desperation, without looking
desperate.
I got to get this, I got tochase it, I got to go get it, I
got to be the cheapest one there.
So I don't love those referralsites.
I don't love paid leads likethat.
(13:22):
If you're going to spend money,I prefer doing some Google maps
placement and some other thingslike that that we work with you
on.
If you're in in our coachingprogram, you'll work with Emory
on setting that up for yourcompany and how to do it the
best spend.
Whether you're spending 500bucks a month or $5,000 a month
or anywhere in between, we wantto make sure that we spend that
(13:42):
money for our best bang for ourbuck and we kind of have a
tiered way that we do that.
Anyways, all of that being said, the goal is to understand what
leads are coming in, what leadsources that are sending you
those leads, how to price it andhow to approach those clients.
If you are looking at everylead that way, as opposed to
(14:03):
just kind of cookie cutter wherea lead comes in, I just treat
them the same way.
This is a sales game.
This is building your salesaround what the need of that
client is right is building yoursales around what the need of
that client is right.
If I've got a farmer coming into buy a truck, he's going to
have different needs than thatdude that just wants to drive it
around downtown, right?
And so I'm going to sell thesame truck to two different guys
(14:24):
, two different ways.
One guy's getting gas mileage.
One guy's getting you know howit looks and how you can upgrade
and how you can do it.
The other guy's gettingpowertrain and the durability of
it and all that stuff.
You're selling the same productto two different people, two
different ways, and that's whatwe're trying to do here with.
When the leads come in, who arethey?
Investor, homeowner, realestate agent?
Where are they coming from?
(14:46):
Did they find you on Google?
Did someone refer them to you?
Did Angie's List sell you thatlead?
Did they come through BBB?
All of that information isinformation I need before
starting the estimate, becausethat's gonna help me frame how
to sell it, who I'm dealing with, how I need to price it, and
(15:06):
really kind of allows me theability to form my sales pitch
around what that specific clientis needing.
If you wanna talk more aboutthis, I would love to chat with
you.
If you go on proshark360.comand go to the contact us, you
can sign up on my calendar to doa 30-minute conversation with
me.
I love to hear about yourcompany, tell you about what we
do, see if we can work together.
(15:28):
One thing that I love doingwith new contractors or
interested contractors is kindof diving into their numbers and
seeing if I could prove that Ican pay for myself and then
someone make the money.
I like to look at how youroperations are running and see
if the cost of coaching andconsulting can be made by making
your inefficiency superefficient.
(15:49):
If I can help make your companyefficient, I will pay for
myself tenfold.
So that's what we try and do onthe coaching side and
consulting side.
If I can build value in yourcompany to where I pay for
myself, maybe it's a greatpartnership.
Sign up for a call.
I'd love to talk with you aboutthat.
If it's something that you havea question about and how you're
doing your company, sign up forthat too.
(16:09):
I'd love to help you out.
For me it's a long-termrelationship, so sign up.
Let's have a conversation aboutit, even if you're not
interested in coaching today.
And finally, if you needsoftware, proshort360.com.
It's a fantastic software.
It's got built-in processes andprocedures from first estimate
to final invoice Definitelysomething that's worth trying
for your company.
It's two weeks for free.
(16:30):
You just go on, sign up, try itout for a couple of weeks and,
if you like it, it's a month tomonth fee, anywhere from $89 to
199, depending on what yourneeds are.
I'd love to help you on boardwith that as well.
All right, thanks so much forlistening today and we will talk
to you soon.
Bye-bye.
Welcome to Contractor Cuts, where we cover the good,
the bad and the ugly of growinga successful contracting company
.
Welcome back to Contractor Cuts.
My name is Clark Turner.
Thank you for joining us againthis week.
So today is another CoachingCuts episode.
So what we are talking abouttoday are lead sources and types
(00:24):
of leads that you're getting in.
Where should your price pointbe, depending on where the lead
comes in, and how do we buildthose estimates around the
specific lead to make sure wecapture as many jobs as we can?
So let's talk about that.
So, first off, there's going tobe three different types of
main leads in residentialcontracting.
Number one you've got yourhomeowners.
(00:45):
You've got the people that areimproving for, maybe to live
there forever, to live in thehouse, or maybe they're trying
to improve it to sell in fiveyears, but they want to enjoy it
while they're living there.
Understanding the process andthe reasoning behind what
they're doing is going to helpyou determine what the estimate
should look like.
Right, if I am trying to buildvalue in the property to where I
(01:06):
know that they're going to sellin five years, I'm not going to
be doing some of the upgradesthat they might want, and so I'm
going to help guide themthrough.
Hey, if you're selling, let'sonly do things that return us a
return on investment.
When it comes to the property,I like to assess the
neighborhood.
I like to assess what kind ofthe top value of the property in
the neighborhood can be.
If they're in a neighborhood,maybe get a realtor involved
(01:28):
that they have one that might belisting the house in four to
five years whenever they'relooking to sell.
But I need to know where isthis money going?
Do they need the money back outin five years, or is it the
building and renovating the hometo be their permanent place?
Right, if they are not evergoing to move, it doesn't matter
if they're spending money onsomething that might not be a
(01:48):
good ROI.
What's important is that thathomeowner is getting the exact
property that they want to livein.
So first, understanding that onthe homeowner side helps you
guide them, helps you lead them,helps you be an advocate for
them as they are building anddeveloping the estimate and kind
of the scope of work that we'redoing out there.
But for a homeowner, thesepeople are looking for
(02:10):
perfection, really good quality,really good communication, a
lot more of a experience thannecessarily the bottom dollar,
the cheapest cost.
Cost is important, right.
But when we talk about the bigthree and the triangle, you've
got your time, you've got yourquality and you've got your cost
right.
But when we talk about the bigthree in the triangle, you've
got your time, you've got yourquality and you've got your cost
right.
And which two of those do youcare about?
(02:30):
Right, if I want high qualityquickly, it's going to cost a
lot.
If I want low cost but highquality, it's going to take me a
long time.
Right, you can pick two of thethree.
You can't have all three at thesame time.
So with a homeowner, I'mthinking through that.
Which one of those two of thethree things do you want and
which one of those are you goingto sacrifice?
Once I start having thoseconversations, this isn't me as
(02:54):
a contractor, selling them aproduct.
This is me helping them achieveand build exactly what their
dream is and what their visionis, and helping them kind of
realize what that is.
Now, investors if you have aninvestor client coming in,
that's totally different.
It might be a fix and flip.
It might be someone building torent or buying to fix and then
rent and turn into a rentalproperty.
There's a number of reasonsthat investors are in there, but
(03:15):
number one for an investor isgoing to be price point.
Right.
If they've got a offer in on aproperty and they say I've got
$85,000 to renovate thisproperty or it's not worth it on
paper to buy, obviously I'm nowworking backwards on how do we
get this property done for$85,000 or less, right?
And so the quality and thespeed.
They might probably care aboutspeed and they want decent
(03:36):
quality, but we don't havesomeone, a homeowner, living in
it, so they're okay with cuttingsome of those corners to be
more focused on how quickly andefficiently can we spend that
money and get in and out so theycan list the property, get a
renter in the property, but,more importantly, I want it safe
, I want it looking nice, but Idon't need high-end finishes.
I really want the best bang formy buck as an investor.
(03:58):
Last group of people that you'regonna be probably working with
are agents, whether it's a realestate agent that's referred you
business, an insurance agentthat's referring you business,
any sort of third party that isrepresenting that customer or
the owner of the property andconnecting them to you.
Now, these clients, what wecare about is carrying their
(04:22):
reputation right.
When a real estate agent offersyou up as a general contractor
to their customer, they careless about price, they care less
about speed, they care lessabout quality.
Even.
They care most about youprotecting their reputation that
you're not going to screw theircustomer, that you're going to
take care of them and thatyou're carrying the mantle of
(04:42):
this real estate agent.
Put their name on my back andso I've got to act accordingly,
right?
So, with whether it's areferral from insurance and an
insurance agent saying, hey,this is a contractor that I
definitely use for, maybe putback.
Or a flood, or a real estateagent saying, hey, I know you're
buying this house, this is areally good contractor that does
kitchens, you should call theseguys.
(05:02):
No matter what, the number onething I care about is a customer
experience at that point,because whatever I do, or more I
don't do, it's going to reflecton the person referring me that
business and if that happens,that water source is cut off,
you have no more faucet ofincoming jobs from that real
estate agent or their insuranceagent.
(05:23):
So those are really the threedifferent apps.
Now that person again, it'sgoing to be more of a homeowner
when we're looking at qualityversus the price, versus the
speed.
But, more importantly, thosethree things, like I said, when
it's a third party referral, Icare about the experience and
carrying that person's namealong with me that they've put,
(05:44):
that they stamped on my backsaying, hey, these guys are good
, you should use them.
Um, I'm really doing it, a tomake that client happy, but also
for the next 20 jobs that theymight refer to me.
I want all of those jobs thatalso come through our door.
So that's the three differenttypes of main types of clientele
that you're going to get on theresidential side.
Now let's talk about referralhow to bid price-wise for
(06:08):
different types of lead sources.
Number one the biggest leadsource that we want is a
referral from somebody else.
We want a referral from anagent.
We want a referral from someonethat's used us before.
We want to repeat customer.
Any sort of referral wheresomeone stamps their name on you
and says, hey, I've used theseguys, they're awesome.
(06:28):
Hey, these guys did myneighbor's house and it looks
beautiful, you should use them.
Any sort of referral leadsource.
What my price point is going tobe medium to high, like what my
value is is they understand itand so I don't have to upsell
them and show them how how goodmy value is.
On my sales side I've alreadyin the door with these guys are
good, they're quality andthey're worth paying a little
(06:48):
bit more for.
So on a referral lead, I'mgoing mid to high range of my
price points.
Again, I'm I'm understandingthe quality, what they're
looking for, but I don't have todiscount it down to try and
land it, because they're usuallynot bidding against too many
people, sometimes against nobody.
So referrals are my favoritelead sources because, a it's
built in, they trust me, and B Iactually can charge our value
(07:14):
because they're willing to payfor the value, because they've
seen the value from somebodyelse.
All right, my next tier down forreferral, my second best
referral, is an internet searchfinding you through Google.
Maybe you got some Google adsrunning or a Facebook ad, but
it's someone coming in findingyou on the internet.
They might visit your websitefirst, might see your Google
page first and then call you up.
(07:35):
Now, this person you'reprobably bidding against three
or four other contractors.
They don't know you from Adam,but they also love what they saw
on your website.
It was a good presentation.
It seems like you're doingprojects that's right in their
wheelhouse that they're lookingfor, and so this is going to be
my standard pricing.
This is my mid-grade.
I've got to be competitive withmy price, but also I've got to
(07:56):
earn their respect and show themthat they can trust me.
So this is where I lean moreheavy into the client engagement
agreement that we do, where Itry to get them sitting in front
of me in a computer to do a CEAclient engagement agreement as
soon as possible, because themore value I can build on the
customer care, on our processes,and I show them behind the
scenes of how we operate,they're more willing to trust me
(08:18):
.
And normally these guys don'tgo with the highest price or
lowest price.
They want to go with themid-rate guys.
So I'm going to give them mybest price first time, every
time, and I'm not going to putany fluff in it.
I'm going to make sure it'saccurate and exactly what I want
to be charging.
But on the referral fee you canhave a little more fluff to be
able to spend a little extra.
Buy them a bottle of wine atthe end of the job and say, hey,
thanks so much for working withus and go above and beyond,
(08:41):
because you've got a little bitof padding built into that.
But with a Google, with aninternet lead that comes in,
someone fills out a form on yourwebsite, we need aggressive but
accurate pricing where we cutthe fluff out and we walk them
through.
And we really got to build alot of value in us being their
advocate, being theirrepresentative, saying, hey,
listen, I'm going to renovatethis property Like it's my own.
(09:02):
What if we spend your moneydoing this?
What if we do that?
And so I'm spending a lot moretime on sales, showing them how
we operate, showing them how weas a company, how they're going
to experience this company, how,what if I can help them
envision what this renovation isgoing to be like for them in
the midst of the stress andchaos, and show them how we
(09:23):
handle that and what they canexpect.
Then they start building thattrust with you and they're going
to go with you.
But again, price points alittle more important to this
person than maybe a referral.
A referral, uh, that you gotfrom somebody, all right.
The next level down from thereis like a, b, a better business
Bureau.
You know that's a, that's alead source that I separate out
from Google.
Whenever I see someone comingfrom our BBB page, they've you
(09:47):
know, we've got an A plus on onbetter business Bureau.
But these leads have higherexpectations.
They are the ones checking BBBbecause they care about not
getting screwed, about havingsomeone that does what they say,
and that's great.
We're that company, we are Aplus on that.
But I'm going to build in alittle bit more fluff because
(10:08):
it's going to be needed Withthis type of a client and when
they're coming from BBB.
Again, this is a generalization.
If you find companies on theBetter Business Bureau and
you're not that way, pleaseforgive me, but for the most
part, clients coming from BetterBusiness Bureau in my
experience have a higher levelof expectation, higher level of
(10:30):
perfection and a higherexpectation of communication,
which they should expect it fromus.
But I also need to make surethat I'm building in enough
money to be able to hold themmore hands.
Right, I've got a.
I'm going to spend more timewith this client than I would
just a referral and building thetrust and holding their hand
and verifying everything.
A lot of times these are peoplethat have been screwed and
(10:52):
burned by contractors, sothey're trying to do all their
due diligence to find the bestof the best.
So I'm going to have a littlebit higher of a price point for
this client.
But, that being said, I'm goingto do my same stuff.
My client engagement agreementis really tempering their fears,
going through their walkingthrough the estimate, really
helping them feel like Icommunicate, I'm a big advocate
(11:14):
for them and I'm a leader ontheir project.
Right, those are our three bigtenets of our core values
communicate, advocate and lead.
And I'm showing them and tryingto impress them with all of
those things happening before weeven sign a contract.
If I can get them to do that,that higher price point is going
to give me more budget to justcover things when they go wrong.
(11:34):
But yeah, the BBB referrals isa special one because there's a
lot higher of an expectation andthey're willing to pay a little
bit more usually for the reallygood service that they're going
to get from an A-pluscontractor.
That's on Better BusinessBureau, all right.
The last kind of referral sourcethat can be coming in are the
(11:55):
paid referrals, like Angie'sList, all of those type of paid
referrals where you're literallypaying to get someone's name
and number.
I hate these.
We don't do these.
I understand companies that aresmall, just getting going
trying to get something in thedoor.
They might have to go this way.
I've not found it valuable.
I've not found it worth it.
(12:15):
Some people have.
I've talked to guys that loveit and that's great.
That's great for a GC.
It's a lot more difficult ifyou're a, if you're a tradesman.
Sometimes it's easier on theAngie's list because you're uh,
you're kind of the base baseprice.
But when we were on Angie'sthey were giving us all sorts of
leads and selling us all sortsof leads and I think we landed
one out of 10.
Because a lot of times peopleare looking for the lowest,
(12:38):
cheapest price and they'reselling that client information
to five, six, seven differentcontractors to hunt that person
down.
So what's difficult about thosetype of leads is that it is a
price point game.
It is a speed game.
It's who can get there first.
It's who can start impressing.
It's like it's like a speeddating, right Like I've.
It's not a one-on-one datewhere we figure out if we work
(13:01):
well together.
I've got 30 seconds to impressyou or not.
I've got to jump on the leadright away.
I got to be ready to jump in mycar and come to the estimate.
It's a lot more of a groundgame.
It's a lot more of almost outof desperation, without looking
desperate.
I got to get this, I got tochase it, I got to go get it, I
got to be the cheapest one there.
So I don't love those referralsites.
I don't love paid leads likethat.
(13:22):
If you're going to spend money,I prefer doing some Google maps
placement and some other thingslike that that we work with you
on.
If you're in in our coachingprogram, you'll work with Emory
on setting that up for yourcompany and how to do it the
best spend.
Whether you're spending 500bucks a month or $5,000 a month
or anywhere in between, we wantto make sure that we spend that
(13:42):
money for our best bang for ourbuck and we kind of have a
tiered way that we do that.
Anyways, all of that being said, the goal is to understand what
leads are coming in, what leadsources that are sending you
those leads, how to price it andhow to approach those clients.
If you are looking at everylead that way, as opposed to
(14:03):
just kind of cookie cutter wherea lead comes in, I just treat
them the same way.
This is a sales game.
This is building your salesaround what the need of that
client is right is building yoursales around what the need of
that client is right.
If I've got a farmer coming into buy a truck, he's going to
have different needs than thatdude that just wants to drive it
around downtown, right?
And so I'm going to sell thesame truck to two different guys
(14:24):
, two different ways.
One guy's getting gas mileage.
One guy's getting you know howit looks and how you can upgrade
and how you can do it.
The other guy's gettingpowertrain and the durability of
it and all that stuff.
You're selling the same productto two different people, two
different ways, and that's whatwe're trying to do here with.
When the leads come in, who arethey?
Investor, homeowner, realestate agent?
Where are they coming from?
(14:46):
Did they find you on Google?
Did someone refer them to you?
Did Angie's List sell you thatlead?
Did they come through BBB?
All of that information isinformation I need before
starting the estimate, becausethat's gonna help me frame how
to sell it, who I'm dealing with, how I need to price it, and
(15:06):
really kind of allows me theability to form my sales pitch
around what that specific clientis needing.
If you wanna talk more aboutthis, I would love to chat with
you.
If you go on proshark360.comand go to the contact us, you
can sign up on my calendar to doa 30-minute conversation with
me.
I love to hear about yourcompany, tell you about what we
do, see if we can work together.
(15:28):
One thing that I love doingwith new contractors or
interested contractors is kindof diving into their numbers and
seeing if I could prove that Ican pay for myself and then
someone make the money.
I like to look at how youroperations are running and see
if the cost of coaching andconsulting can be made by making
your inefficiency superefficient.
(15:49):
If I can help make your companyefficient, I will pay for
myself tenfold.
So that's what we try and do onthe coaching side and
consulting side.
If I can build value in yourcompany to where I pay for
myself, maybe it's a greatpartnership.
Sign up for a call.
I'd love to talk with you aboutthat.
If it's something that you havea question about and how you're
doing your company, sign up forthat too.
(16:09):
I'd love to help you out.
For me it's a long-termrelationship, so sign up.
Let's have a conversation aboutit, even if you're not
interested in coaching today.
And finally, if you needsoftware, proshort360.com.
It's a fantastic software.
It's got built-in processes andprocedures from first estimate
to final invoice Definitelysomething that's worth trying
for your company.
It's two weeks for free.
(16:30):
You just go on, sign up, try itout for a couple of weeks and,
if you like it, it's a month tomonth fee, anywhere from $89 to
199, depending on what yourneeds are.
I'd love to help you on boardwith that as well.
All right, thanks so much forlistening today and we will talk
to you soon.
Bye-bye.
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