How To Create A Concept Agreement

Are you fed up competing on price against 6 other builders every time you try to win a job?

It’s a common problem for builders that send away consumers who don't have plans and then wait for them to come back for a quote... Which means they are commoditising their building company, which results in them competing on price rather than value. 

What if you could take a potential client out of the market, and away from your competitors, by using a concept agreement as part of your sales process? The industry refers to these building companies as D&B or Design & Build. However, they rarely employ designers... 

When you build a 1-1 relationship at the beginning of the consumer's journey you'll not only win more of the jobs you quote, you’ll also enjoy higher margins. Builders that engage a client prior to the design stage enjoy 7% higher gross margins compared to builders that quote on a client's own plans. 

Look For Prospects Before They Look For You

Professional Builders target potential clients BEFORE they start the design process and take them out of the market using a Concept Agreement. While AVERAGE builders send away consumers that don't have their plans finalised and then compete against 3 other builders when they come back for a quote.

Who are you targeting in your marketing, consumers that are looking for a builder... or consumers that are looking to design a new home?

Stop competing on price against 3 other builders. And start building 1-1 relationships at the beginning of the consumer's journey. When you do this, you'll win more jobs at higher margins.

The old way of thinking is for new home builders to price a prospects plans and then try to win the job with a competitive quote. Truth is, when you do this you are nothing more than a commodity which means you are always competing on price. However when you own the relationship with the client through the design process you won’t need to cut your margins because in most cases you will be the only builder quoting the job. 

So don’t listen to the old school builders who tell you it’s all about price, Instead, listen to the new home builders that are providing a professional service and are getting the margins they deserve...

Here’s what you need to do.

Create An Offer They Can't Refuse

First, create an offer that includes more than just the design. When you do this, you’ll provide your clients with value that a lot of other builders won’t. By providing this extra value, you will build a relationship with your clients to help you progress them through your sales process, after taking them out of the market fast. Things like estimates, contours, soil tests and site visits aren’t typically included by average builders. So, include them in your initial offer to add that extra value. 

Next, set the value higher than the price you are prepared to offer. And, only offer the deal to qualified buyers. This will show the client clearly just how much they are getting for the price they will pay. When you do this, you will be presenting offers that will be hard to refuse, to clients you actually want to work with. 

However, the best way to build a 1-1 relationship at the beginning of the consumers’ journey by using a concept agreement as part of your sales process, is to do this during the concept meeting.

Set An Agenda & Ask For The Sale

First, set an agenda. It’s important to be clear about what will be discussed during the concept meeting. And, make sure the client is aware too. So, if there’s anything else they might want to discuss, they can let you know before the meeting so it can be included on the agenda too. This helps maintain focus during the meeting. It’s easy to get off track, but an agenda will make sure you cover everything you need to.

Then, make sure you ask for the sale. You’ve already wrapped up a whole lot of value in the offer, identified that the client is someone you want to work with, and presented an offer that should be hard to refuse. So, don’t be afraid to ask for the sale. 

But also, try to avoid leaving it with them to decide. This is just fear. Try and encourage them to make a decision before the end of the meeting. 

So what if you could take a potential client out of the market and away from your competitors by using a concept agreement as part of your sales process?

Would it help you to build a 1-1 relationship at the beginning of the consumers’ journey so you can not only win more of the jobs you quote, but also enjoy higher margins?

You’re not alone…

And that's why we are offering free marketing strategy sessions to new home builders.

When you have the right strategy, you can target your ideal clients BEFORE they start the design process.

So you can win more or the jobs you quote and enjoy higher margins.

Click on the link below to learn more.