Bathroom Design – The Process Vol. 3

3.  Budget

Why do you need to know their budget? It costs what it costs, right?  Nope.  You cannot do them justice if you just estimate their project and have no idea how much they are willing to spend.  I’ve only had one person that told me that money was no object.  I was overjoyed at finding this mother lode.  When the estimate was offered, it turned out to be fool’s gold.  Everyone has a budget.  Many times, if you do not arrive at a budget you will waste a lot of your time, and leave the potential customer very discouraged.  If they will give you at least a range of their budget, you can choose the right procedures and products to bring the project in on budget.

Here are the six steps in a bathroom design process:

1. Space - what space is available for this bathroom?
2. Function - how is this bathroom going to be used?
3. Budget - how much do they plan to invest in this bathroom?
4. Layout - what is the best use of the available space?
5. Product selection – within the defined budget, what products fulfill the function of the bathroom, fit their lifestyle and their budget?
6. Building the bath – what process will be used to build this design?

Or, if their budget is very unrealistic, and they are unwilling to budge, then it’s time to say thank you very much.  It was nice to meet you. Adios.  You need to know what the basic cost is for what you are selling.  Look at your past examples of the costs for bathrooms, kitchens, master suites, basements and attics.  Throw those out and watch their reactions.  If you are speaking to a couple, watch each one’s reaction.  You’ll soon know who you need to direct the most information to, and who you need to convince.  Here are a few tips on obtaining the budget.

Discovering what the budget is:  Budgets are always difficult to obtain.  In reality, the job will cost a finite amount, and there is no escaping it.  When they sign your contract, they are verifying that they are willing to pay that amount for your work.  Getting to that number before the signing of the contract is another matter.  Very few potential customers (PCs) want to let you know how much they can invest in the project, lest you charge them that amount without really estimating the job, in other words, take all their money.  Whether you are a general remodeler or a design-then-build remodeler, you will do a better job of estimating the job if you have a budget to base it on.  When you ask for a budget, they will usually say, “That’s why we called you.  We want you to tell us how much this project will cost.  We don’t know how much it costs.”  Now you have to explain to them that that is not the point.  Although it makes perfect sense to them.  They don’t realize the large range of costs that will affect their final number.

I remember listening to Phil Rhea in one of his many seminars, tell us what he would say to the customer.  He’d say, “I can build you an addition for $1,500 or I can build you one for $250,000.  I can build your job for whatever want, but you’ll only get what you pay for.”   In other words, he was telling them that he can build a dog house or a really good addition, but he needs to know what they are willing to invest in the project.  Notice that I use the word “invest” when I talk to the client.  It is an investment, not an expense.  You always want to impress on your PCs that if they design wisely and the project is well built, they will get a good return on their investment.  Unlike cars, or boats or RV’s, investing in their homes will give them a positive return on their investment.  As you probe for the real number, you need to continue to educate your PC about how and why they should invest in their home, especially why they should use you to guard their investment.  Make this very real to them.  Tell stories and anecdotes about your other jobs and customers.  Remind them how much time they spend on research when they buy a car or a product, which are much smaller investments than they are about to step into.  As they warm up to you, and see that you are on their side, they will be more willing to tell you how much they are willing to spend on the project.
Let’s summarize what you have done so far. You have talked about the available space and how it will be used.  You know a good bit about their lifestyle.  They have gotten to know you better.  You have told them a little about the kind of project that you could build for them.  You have started painting the picture for them, and they are getting excited.  Inevitably the subject of money has to come up.  Very rarely will they tell you how much they are willing to invest.  One of the best techniques to use is the multiple choice system.  You have already told them that the average project of this sort costs this much, and they passed that test.  Now throw out some ranges for them.  Say something like this for example.  “I really like your ideas about your new bath and I think the space you have allocated to this project is ideal.  As I told you before, the least expensive bath I have done was $13,000, and that’s for a very basic makeover.  From what you’ve told me so far, yours is going to be considerably more.  In order to arrive at a reasonable design we need to know what you are willing to invest in this project.  Are you willing to budget $30,000 for this bath job?”  They might say, “That’s a lot more than we had in mind.”  Then you say, “Well, how about if we use $24,000 as a budget number?”  They return, “I guess we could look at that, at least for the estimate.  We can always cut back later, if it is too much.”  Bingo.  You have a starting point.  And my guess is that they will probably spend the 30K if you sell yourself and their project properly.
Don’t ever underestimate how much a PC is willing to spend.  Even if they tell you what they are willing to spend, there is a good chance that it is the low end of what they are willing to spend.  Never apologize for the high price of a project. Paint the picture and share their excitement.  People buy emotionally.  A recent quote by an outstanding marketer and consultant on the ongoing webinars called “The League of Extraordinary Minds” was, “We are not thinking machines.  We are feeling machines, that think.”  Think about that.  Happy selling.

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www.RemodelerBiz.com is published by Randall S Soules, a 37 year construction veteran. The intent of this web site is to help builders, remodelers and those in the trades, create a rewarding career and lifestyle.  At Remodeler Biz you’ll find helpful articles on niches, marketing, graphic standards and the design-then-build field.