Confession: here at Team JobFLEX, we’re secretly a bunch of nerds. Even though we have over 100 years of collective experience in construction, building science, and other get-your-hands-dirty trades, we’re also nerds. Nerds who love tech; nerds who love solving problems; nerds who love research.
So when we kept hearing about veteran contractors in the industry struggling to keep up with increasing work loads due to the lingering labor shortage, we decided it was time to bust out our nerd hats and see just how bad it was out there with a little research project.
We’ll cut straight to the chase: it’s bad. Real bad. Contractors are losing customers — lucrative, rewarding, and potentially ongoing customers — on a daily basis and blaming it on the labor shortage. They’re short on staff; resources; time. (Aren’t we all?) But here’s the thing — it doesn’t matter if you’re a team of two or a team of two hundred — the three main issues we saw amongst contractors losing work had nothing to do with the size of your staff.
From the Horse’s Mouth: JobFLEX Talks to Homeowners
Intent on getting to the bottom of why these seasoned pro contractors are giving up work to their competitors, we went straight to Midwest homeowners planning projects. We asked them to request two or more quotes, then followed up to learn who they chose, and why. Their answers revealed exactly what we were looking for: the top three mistakes contractors are making that cause them to lose money and fall victim to a dried-up sales pipeline. Read on, and take notes, because we’re telling you exactly how you can avoid doing the same.
Mistake #1: The Blow Off
The Mission: Two different homeowners in the upper Midwest were looking to have large projects completed — decking, new sod, landscaping — and both willing to put up more than $10K
The Result: Our first homeowner could hardly get a call back. In fact, she actually had to track one contractor down at their place of business after they were a no-show twice at her home. The second homeowner? Out of five calls to different contractors, three came to look at the job — and only one followed up with an estimate. Both homeowners felt inconvenienced, neglected, and frustrated.
The Lesson: Give your prospects the courtesy of a simple call back. They’re looking to put money in your pocket — they shouldn’t have to hunt you down. It doesn’t matter if there isn’t a spare moment on your current calendar — there will be sometime soon. And at that time, you’re going to wish you had paid attention to the leads knocking at your door when you were “too busy.”
Mistake #2: The Long Wait
The Mission: One homeowner on the market for insulation and air sealing
The Result: After several phone calls, only one contractor out of six offered to provide an estimate within two weeks. Four companies estimated 1-2 months before a quote could even be given and one refused to quote the job at all. The homeowner was rightly frustrated.
The Lesson: Whether or not you need the work right now, quote the customer. Look at quoting as if it were dating; a signed contract would be an engagement; and a scheduled work start date would be equivalent to marriage. Just because you start dating a prospective customer now doesn’t mean the wedding is right around the corner or even a sure thing. Be honest and transparent regarding start dates. The customer will appreciate the immediate attention despite the wait for the actual work — and your honesty will set the expectation you want in creating a lasting relationship. Worried about the time it takes to quote? Take a closer look at your quoting process and make it as easy on your team as possible.
Mistake #3: The Follow-Up Fail
The Mission: One homeowner ready to put a new deck on their summer cottage
The Result: They sought out three estimates: two local contractors and one over 100 miles away. After receiving estimates from all three, the homeowner made follow-up calls with questions to the two local contractors yet never got a call back with answers. After several failed attempts at getting answers, the decision was made to hire the contractor over 100 miles away — who also had the highest bid and a surcharge for the extra travel time — simply because he followed up.
The Lesson: A visit made and a quote prepared doesn’t mean you can throw your feet up and relax. Follow up to make sure any lingering questions are answered; offer insight into the process and your potential timelines. Follow ups don’t have to take a long time — keep it simple and straightforward and make the most of each customer touch point. Even if you’re not ready to start tomorrow, you’ll create the rapport you need and stay top of mind.
Keep Potential Customers in Your Wheelhouse
Calling contractors and actually getting quotes in a timely, professional manner shouldn’t be the exception like we saw in our little experiment — it should be the standard. But here’s the thing: it’s not. Don’t be the fool so full on your current projects that you can’t see the forest for the trees: your sales pipeline will dry up and you’ll lose the opportunity to capitalize on the leads coming in now.
Whether you’re fully staffed or aching from the labor shortage — it doesn’t take an army to answer the phone, provide quotes, be honest about timelines, and follow up so customers know you care. Avoid the mistakes outlined here and we promise — you’ll repeatedly beat out the contractors who “just don’t have the time.”
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