As a professional contractor or businessperson, talking about money would seem to come second nature. However, when it comes to discussing how you arrive at the bottom-line cost of your services, it’s best to be as detailed as possible.
After all, money doesn’t grow on trees, so we recommend these tips for having ‘the talk’ with clients about project costs.
Define the Project Budget Right Away
Don’t even fathom drawing up plans, buying parts or offering quotes from your sub-contractor or a kitchen supply store, etc., until a solid budget limitation has been set by the client.
Even if they don’t exactly know their budget, have them commit to a high-end figure so you know what you might be working with to begin the planning stages.
Offer Clients Some Typical Cost Ranges
This is vital for those “I don’t know” clients, and contractors can help them figure things out by offering typical costs per room or per project. Show clients some final tallies for similar projects you’ve recently completed or participated in, so they’ll know what to expect.
Find Out What’s Most Important to the Client
As you are discussing the costs of each project or room, make sure to find out what level of importance this particular aspect is.
Some may find the kitchen and bath to be more worthy of their financial efforts, while the bedrooms may not be as essential. Determining importance helps you work with clients that are on a set budget get what matters to them most out of the project.
Regardless of your area of expertise, if you are responsible for help cement client’s budgets for an upcoming project, these tips will help you communicate clearly and effectively to avoid complications and misunderstandings down the road.
