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The Conversation That Could Save Your Business

⏱️ 12:25 🎀 Tim, Derek
AUDIO EPISODE
The Conversation That Could Save Your Business
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Chapters

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  • 0:00
    Handling unexpected costs
    Tim and Derek discuss how to manage unforeseen expenses on a job site without the contractor 'sucking it up'.
  • 0:31
    The Change Order Protocol
    Derek explains their company's process for handling additional work through change orders and how they communicate this with clients upfront.
  • 3:38
    Overcoming sales discomfort
    The hosts delve into the common contractor tendency to avoid uncomfortable conversations about money and additional work, leading to lost profit.
  • 4:58
    Impact of other trades
    Tim shares an experience where other trades on a job site caused delays and complications, increasing project costs.
  • 7:00
    Ongoing job costing
    Derek explains the importance of daily job costing and communication to monitor project progress and address potential issues early.
  • 8:31
    Salespeople and change orders
    Derek recounts a conversation with a COO about salespeople often failing to process change orders, leading to lost revenue.
  • 9:29
    Upselling to offset losses
    Tim advises contractors to proactively upsell additional enhancements to compensate for unforeseen losses, enhancing the project for the client.
  • 15:50
    Encouraging client's dreams
    Derek shares an example of empowering a client to consider a larger project, highlighting the contractor's role in helping clients visualize possibilities.
  • 23:40
    Talk to clients about enhancements
    Tim and Derek conclude by urging contractors to confidently offer enhancements and position themselves as experts.

Speakers

T
Tim
Host
D
Derek

Key Takeaways

✦

Always use change orders for unforeseen costs; never 'eat' the expense, as it erodes profitability.

✦

Integrate change order discussions into your initial contract and sales process so clients are prepared.

✦

Proactively look for upsell opportunities on every job to enhance the client's project and potentially offset unexpected costs.

✦

Don't be afraid to have uncomfortable conversations about additional work or money; your expertise is valuable and should be compensated.

✦

Implement daily or ongoing job costing to monitor project finances, identify potential losses early, and make timely adjustments.

✦

Position yourself as the expert by suggesting creative enhancements and showing clients what's possible, even if they initially haven't considered it.

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