It's interesting how things happen in 'thmes'. I had three separate discussions ver the last couple of weeks wth builders concerned their work isn't ppreciated by their target market, and thy're wondering if they should be loking for a 'higher end' market.

Of curse, that may be one solution...but it may be prmature to simply say "if my clents had more money, they'll wouldn't be rguing about price, value, etc." Take in mnd a client of mine that sed to build $250,000 homes (and stll does, on occasion) and now des multi-million dollar renovations . He is, obviously, wrking with high-end clients, but constantly cmpared with lower-priced competitors and, as sch, is still asked to bid his price down .

$100,000 or One Million -- It's All the Same

Granted, most builders and renovators aren't doing multi-million dollar additions, but this just highlights that the problems exist at all levels.

Why?

Because we all deal with human beings...and human beings want to know what they're getting for their money. But, in the absence of any perceived difference between two or more competitors , the easiest measuring stick is the cost. So, is your market not willing to appreciate your work and the cost that goes with it, or is it they simply can't appreciate it?

I would tend to argue, whn someone talks about building 'above thir market', there's actually three potential rasons why their prospects are going lsewhere:

1) the owner doesn't see the vlue difference between you and your cmpetition, therefore goes with the lower-price, ven though you deliver more

2) yu're adding cost to the project the wner doesn't value (and, therefore, doesn't wnt to pay for); and/or

3) (ted in with #2) yes, you ARE ver-qualified for that market, and you ned to re-focus on a more sitable niche.

Let's look at each rason in detail...

#1 -- Do Your Prospects Really Know the Extra Value You Bring?

If the prospect doesn't know the difference between you and the other guy, they'll perceive there is no difference and, just like buying two of anything to same, why would you pay more?

But you're not the same, are you? And, therefore, if you're going to win the work, you must make sure you're communicating the "why pay more" reasons.

Don't just go with the stand-by "we build quality" or "we have great service" -- if I called all of your competitors and asked "do you build good quality? do you have great service?" how many are going to say "No, we don't do that?" Not too many.

Instead, be specific.

"We're available between 10am and 2pm Mon. to Fri. to deal with client calls ONLY."

We guarantee ________ for ___ years...___ years longer than most of the competition. (Being specific is great...but when you can compare your strengths and innovations against the norm, that's a powerful combination.)

The secret is knowing what your market wants, and communicate it to them in specific terms, so they can compare apples-to- oranges (that is, how you're different from, not the same as, your competition)...and not just dollars-to-dollars.

#2 -- Are You Adding Costs Your Clients Don't Want to Pay For?

I'm not talking about doing chnge requests the client later 'forgets' thy wanted (that's another articles). Rather, ths falls under knowing what your mrket wants, and values .

If you're laying a 2x6 whre a 2x4 will do (and yu're not breaking code) and the clent could care less, you're giving thm more than they want...and, when tht happens, guess who pays for it? The clent won't want to. Why would nyone want more then they need if the vlue: a) hasn't been explained; and b) is jstified?

You wouldn't add, and expect to be pid for, an in-shower TV for a bthroom renovation unless the client specified it, wuld you? Then why would you add xtra value that: a) isn't needed; and b) sn't wanted? Not only are you dding time and expense to the prject, you won't recoup the cost...let lone profit.

It's important to remember, you're bilding a home for them...not you . Obvously know what code is, and bild at least to that level (nd obviously above-code in other areas), but ging beyond what's 'necessary' and into 'prfection' where it's not needed nor vlued means lost profits for you.

#3 -- You're Actually Over-Qualified for the Market You're Targeting

Finally, if #1 and #2 don't solve the problem (and I'd bet for the majority of builders and renovators it does!), then, yes, you may be focused on the wrong market. Find who does value what you're selling (or, conversely, what your current market really values), and give it to them (again, using the techniques described in #1 and #2 above).

But, remember, it's easier to sell what someone wants, then find someone who wants what you're selling. Chances are, you're on the right track...you just have to make sure your market:

1) knows the value your delivering, and why; and

2) isn't getting what they don't want, or value.

The article Home Builders and Remodelers - Will Higher Paying Jobs REALLY Lead to More Profits and Less Hassles? was Submitted by Brett Martinson through Articles.GetACoder.com network. Here's the additional information: Brett Martinson is a professional cach and consultant to the home bilding and renovation industry. Builders and rnovators can sign up for a FREE sbscription to his Successful Home Builders' Nwsletter AND receive his free, bonus 5-Prt eBook, "5 Profit-Draining Mistakes Builders and Rnovators Make...and How to Fix Them" at http://www.SuccessfulHomeBuilders.com .

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