Feeling the affects of a tough market? Is your pipeline looking a bit light? Check this out…

In the fourth part of our series on Guerilla Marketing for builders, we will delve into one crucial aspect that is often overlooked when it comes to boosting sales, updating your offer. As the saying goes, if you always do what you’ve always done, you’ll always get what you’ve always gotten.

With the competition for fewer leads increasing in the construction industry, it’s essential to differentiate yourself from others by creating a great offer. So let’s roll up our sleeves and discover practical strategies to attract more customers and ultimately increase sales. Watch/Read/Listen to this episode and get started!

Builder Lead Converter ATTRACTS, CAPTURES & CONVERTS high-quality leads for builders so they can pick & choose their clients & jobs. Find out how at https://www.builderleadconverter.com

 

Transcript:

 Today in Conversations That Convert, we’ll be talking about how to keep your sales pipeline full in a tough market, and we’re going to be working on the topic of An Offer. What does an offer look like for a builder and why you should use it? Let’s get started. 

Welcome to Conversations That Convert. Every week we’ll spend about 10 to 15 minutes tackling relevant lead-generation marketing and sales topics for remodelers. Home Improvement Companies and Home Builders. Conversations That Convert is brought to you by Builder Lead Converter, your perfect sales assistant.

And now, here’s Rick and Daiana.

Rick: Hey everyone, welcome to Conversations That Convert. Welcome Daiana, how are you? 

Daiana: I’m very well, thank you. Welcome everybody, and how about you? How are you today? 

Rick: Well, it is the Christmas season, so we want to wish everyone a very, a Merry Christmas. This is our last episode of 2023. So, very Merry Christmas, everyone out there and Happy New Year to you as well. We sure appreciate you joining us today and also for other episodes. So Daiana, what are we talking about today? 

Daiana: Today, how builders can keep their sales pipeline full and of course in a tough market. 

Rick: In a tough market. Yeah, it’s a little bit slower out there right now So we’ve been working through of this five part series. This is all about guerrilla marketing for builders, you know based on the question You know, really where should I start? So we’re going to talk about things that don’t really cost you any money or it costs you a low amount of money Versus the big things such as running ads and and all that And this is based on the number one marketing challenge. Now, we just got the results back from 2024 from the state of the residential construction industry survey. This is an annual survey put on by the association of professional builders.

This year, they surveyed about 1500 builders between Australia, New Zealand, Canada, and the US. And what we found once again is the number one marketing challenge in 2024 remains the same as 23, and that’s generating high quality leads. So guerrilla marketing here, what we’re talking about is you know, things that you can do right now to bring some opportunities in the door without going out and spending a bunch of money. You know, let’s just do some of the basics. Let’s do them really, really well. So this is part four. We’re calling this update your offer. And this is some new language that a lot of builders may not have heard of before.

But we’re going to walk through what an offer is. And what it’s not, what are the components of a good offer? And then also talking, you know, a little bit about downselling from, from an offer. So what do you say, Daiana? Should we get started? 

Daiana: Yes, let’s go ahead and get started. 

Rick: Let’s go ahead and get started. Christmas is almost here, right? 

Daiana: Yes, I can’t wait to rest and enjoy and eat and drink and…

Rick: Be merry. 

Daiana: Exactly. 

Rick: Yeah. So, All right, well, let’s talk about an offer. What is it? What isn’t it? An offer is simply It’s something that you present to your target market that is too irresistible to pass up. So, it reminds me of the Godfather movie, right? Come and I’ll make an offer they can’t refuse. That is essentially what it is. I don’t, I think the offer from the Godfather maybe was not what I’m talking about here. But, where you would present an idea or really a call to action to your target market where they would go like, this is a no brainer. Why would I not do this? So keep that in mind. It’s a no-brainer thing. Now, here’s what most builders have for an offer, Daiana.

It’s call me or fill out this form on my website and hit submit. So in other words, they have no offer. So, when the market gets tough, like right now, it’s a little bit slower. If you don’t have an offer or your offer is crappy, that’s one of the reasons that when the market stops producing, your phone stops ringing. And so the builders that are still actually getting business in today, they have a compelling offer or offers out there. And so there’s still people taking advantage of those. So what do you think so far, Daiana? 

Daiana: Yeah, so it’s interesting that it’s something so easy and simple. And yet you don’t realize that that can be an obstacle in front of, between you, and your high-quality leads. 

Rick: Yeah, exactly. And this is not just a home building or remodeling thing. There are certain offers we’ll talk about that work better for that. This is any small business. Anybody who is trying to bring business in the door, any company has to have an offer or sometimes there’s multiple offers, which a lot of our builder clients, you know, they’re going to have multiple offers. What we’re doing is we’re just trying to find the one that best suits that particular lead so we can start the relationship. And that’s what it’s all about. So let’s talk about what an offer is not. Okay. Okay, really important. An offer is not a discount.

Now, there are certain like home improvement companies out there that, you know, will say, oh, we’re having a sale going on or 50 percent off labor, you know, that sort of thing. And for design-build, that doesn’t work. Okay, so get that out of your head. We’re not talking about a discount. I have seen other builders to say, hey, today only take 15, 20, 000 off your home. Okay, that’s not, that’s not what I’m talking about even. That is not a good offer. And the reason is because from a sales perspective if I lead with an incentive, you know what the buyer says? The buyer says, Okay, great. Thanks, Rick. Okay, what else can I can I get? So I’m just going to attract the wrong type of clientele that way. So the only time you should use an incentive, a financial incentive in design bill is when you are closing the deal, not as an opener. Hopefully, that makes sense. What do you think Daiana? 

Daiana: Yeah. So it’s interesting because sometimes we are thinking, when we build the offer, we actually think about a discount. So I never thought about that. So, to make the distinction between the offer, the offer, that it’s actually not the discount. So I think it’s there are two separate things.

Rick: Right. And it really depends what you’re selling. Like I said, some home improvement services. Yeah, sure. You can do discounts. You can do sales. That’s fine. But for design, Bill, that it just doesn’t work. And really, it puts you at a disadvantage as you start that relationship with your buyer. And they’re going to keep that in the back of their mind. And they’re always gonna be thinking about, okay, what else can I get? Can I get, you know, and that’s the wrong type of client. You don’t, you don’t want to go down that road. So, so, let’s talk about now, what are the components of a good offer? Shall we? 

Daiana: Yes. 

Rick: All right. So the components must have these things. Number one is you must match the sentiment of your prospective buyers. And how do you do that? Well, you’re going to do that through conversations. You know, right now, the sentiments in the marketplaces are interest rates are high. Affordability is low for custom homes. We’re modeling a lot of people to pause because, you know, to go out and get a HELOC right now, you’re talking, you know, maybe eight plus percent. I’ve heard nine in some cases, you know, it’s, it costs more money to, to borrow. There are still plenty of people out there willing to pay cash though, you know, so those people are still buying, but a large portion of the marketplace has paused.

So that means that there, there’s more builders chasing fewer leads, which makes it tougher to get them in the door. So, from the sentiment perspective, buyers are much, it must match. So certain offers are going to appeal to your leads based on what the current market conditions are. So in a tougher market condition, you’re going to do things a little bit differently than say when things are really hot, you know, and of course we just came out of a really hot market with COVID where we didn’t have enough labor. We had supply chains issues. We had a huge backlog and we were sort of telling people, hey, the price is the price.

I don’t care if you don’t go, you don’t, you don’t build because. I’ve got 16 people behind you. So, we have a different offer when it comes to that. You know, so now things have changed. So again, just remember that you’ve got to match the sentiment of your respective buyers. Now, number two, your offer really should be based on the time of year and the strength of your local market. I have found the best time to throw an offer out to your database of unsold leads, or even your past clients if you’re a remodeler. It’s right after the first of the year because a lot of people, you know, they entertain the holidays and they look around at their house and go like, I don’t like my kitchen anymore.

I don’t like my bathroom or my house is too small or, you know, I want to downsize, it’s too big, that sort of thing. So people come to the right of the ear and it’s everything’s fresh. You’re like, you know what, this year I want to do something different. So to come out right away with an offer is a great time to do it. Now I’m going to do a different offer. In say when I get to summer and maybe in the fall or even, or, or different times of the year that I am going to do in the spring. So, I should say the winter, which is January right after the first of the year. So this is now the offers coming up. It’s going to be all about happy new year. Hey, if you’re considering doing this.

Here’s what we can do for you. That’s kind of how this offer is going to work. Okay, number three You want to use expiration dates and or a limited number of whatever your offer is to create urgency. Remember you have to create scarcity in order to create urgency. So, if you want people to say yes, I’m interested you have to tell them that this offer is only available for a limited time and or there is only a certain number of these available and then finally, you want to focus your offer around design is the best, okay, because people their first question is what can I build, you know, and then you start with timing. That’s also another good one. And this goes back to the old sales adage.

If I say, hey, Daiana, when do you want to start a new remodeling project? The typical answer is, Oh, I’m in no hurry, but if I say, Hey, Daiana, how soon do you want to be living in and enjoying your new kitchen or your new bathroom, that sort of thing. Everyone has an idea of when they want to be done. And oftentimes, of course, that result that revolves around some date. So, school starts, we have a birthday party coming up or a graduation and that sort of thing. So it’s usually some sort of their date there. So they know when they want to be done, but nobody’s in a hurry to get started. So timing is also important too. Number three, like if you are selling spec homes, okay.

So if you have a low inventory market, one of your offers you can put out there is like, Hey, available inventory. If you would like to know about available inventory that is not on the multiple listing service. In other words, you’re looking for a home. You can’t find one, I have something. If you want information on that, you need to take action. So that’s a that’s a good offer. And then finally locations. So if you have a high-demand location, you only have a few lots to sell or a few available lots that are still prime. That’s a good one. I’m working on that with a client right now. So anyway, let me just run through that again because I gave you a lot.

So what are the components of a good offer? Number one, it must match the sentiment of your prospective buyers. It should change Based on the time of year and the strength of your local market, you want to use expiration dates and or a limited number of these to create urgency through scarcity and then focus that offer around design, timing of when they can have the project finished. If you have available inventory, if you’re building spec homes and or have lots. that are in high-demand areas or a low inventory environment. So that was a lot. So Daiana, any thoughts there? 

Daiana: A lot indeed. And I’m, I’m just thinking about my own behavior. So indeed, I-I’m not in a hurry to start, but I am also, I want to finish fast. So everything gets in, it’s in place. So how can you just match that? So, and realize what’s the reality because you need to start. And there are some setbacks and things that can happen unexpectedly. So you need to budget those too. So just start as soon as possible. And then, and then I think it’s a, we, we need to shift that. So, start as soon as possible and then have no. No deadline when it’s ready. 

Rick: Yeah, right. That’s how a lot of remodelers work, right? It’s like, Hey, let’s get you started. And we hope to be finished by such and such a time. Actually, all our clients are really good with that, with that production management software. But yeah, that’s the, so, that is the one of the I would say inherent fears of anyone who’s going to build a home or remodel home is the number one is the price is going to go out of control and it’s not going to be done when you say it’s going to be done. So it’s always good to talk about that, but timing is really imperative and important and you have to understand that everyone thinks they can get their house built twice as fast as it might take, or they can get the remodeling project done real easily.

They don’t understand the amount of design time. It takes the amount of engineering, permitting construction, you know, supply time, you know, a lot of our clients that are building homes, you know, it’s a year to 18 months, you know, to get something done. I can guarantee you none of their leads are thinking it takes that long. You know, they’re thinking, I can get something built and done in 6 or 12 months. You really can’t. And when you have a low inventory market, you know, a housing market, which a lot of locations still have. You know, a lot of people they can’t find a house to, to buy. And so they think about building. Yeah, you have to really focus on timing.

So timing is really it’s really important for somebody again that’s sitting on the fence. And what you do is you say, Hey, look, I’ve got this available. If you want this information, you need to do this. You know, so the, the technique is called a sharp angle close. If we can offer you this, will you do this? So if the offer is for timing, hey, we have two available slots where we could have your project completed by such and such date, are you willing to sign a concept agreement or sign a professional billing agreement or go go into plan design in order to get that slot? You know, so that’s again, an I idea for an an offer.

And also I should, I should mention, you know, if you look at your list, you are using segmentation. You have different people in different stages. So a brand new lead who is maybe just on your website. They’re gonna they’re gonna react to an offer differently than somebody that you’ve been talking to for a while or has been in your database for for a while. So that’s the components of a good offer. So, let’s move on and you know guys we wrap up here today and talk about what types of offers work for design-build. Now, even if you do semi-custom homes and you’re starting with floor plans you know, we’re still going to follow the design-build process because someone still has to find a floor plan first.

They need to personalize it. They need to build it. So if you’re doing stuff from custom, this also applies as well. So what types of offers work for design build? I already mentioned what doesn’t work. Any sort of financial incentives. Never lead with that. Bad idea. Puts you behind the eight ball. It’s very difficult to recover. So what does work from a design standpoint, and that’s where I usually I start because everyone has that question. What will my project look like? What was my new kitchen going to look like? What is my new home going to look like? So I like to put offers out there for anything related to new technology.

So, what’s a new technologies, 3D renderings, and 3D interior designs? I can see what your kitchen will look like in three dimensions. I also like virtual reality. You know, there’s, there’s technology out there right now where you can put the goggles on. And you can see your project, you know before you it’s like you’re walking through it I can’t remember the name of the technology, but it’s it’s for home builders. They can design a home, put it into the software that people the leads put the goggles on they go out to the lot. They can walk through that home on the lot. They can even see where the windows will be and what their views will be really really cool stuff.

Those are great offers. Yeah, anybody who’s interested in doing a custom home loves that because of course. That’s the number one question. What’s it going to look like? And so now they can actually go out and see what it’ll look like. So new technology is a good offer. New products. So this is something we used to do a lot with model homes, but it would work really for anything. A lot of manufacturers out there, when they roll out a new product or they have a higher line, like say appliances are a good example. A higher line of appliances. They will offer incentives to that particular client that if they showcase that home for some marketing purposes, so that those appliances, an example, get exposure, they will get them a financial incentive.

So we used to do this all the time. We used to say, Hey, look we’re going to build a model home. We want we we we want to showcase this information. If you’re interested in buying this, if you are willing to upgrade your appliances, you can get a discount as long as we can put it in this particular event and that might just be an open house to showcase that it might be like a pray to homes type thing or modeling show.  So that’s another great offer out there. And you just got to talk to your manufacturer reps and usually all of them have some sort of a promotional program. So, that if you expose them to other prospective buyers, they will give a financial incentive.

So, usually what it relates to is like, say you’re going in and you’re going to build a builder-grade type of product. You can upgrade to the next level there for the same price as the builder grade. So it’s a pretty decent pretty decent incentive. So new products is a good one. The other one I like is additional time with an interior designer. You don’t throw it out there. So a lot of you work with interior designers. You could say, Hey, our interior designer she’s, we’re going to give an extra three hours of consulting time to help you do all of your interior selections free of charge. We only have it available for three people for the next week. If you’re interested. You know, contact me for details that would be a typical offer that would use for an interior designer. So any thoughts there, Daiana? Anything ring a bell for you? 

Daiana: Yeah, I think it’s it’s, it’s good to, I don’t know, to work some, some and have a conversation, an extra conversation with the designers and have that, that extra time. I think it’s, it’s very, yes.

Rick: Yeah, women, women love it. So it’s, it’s, it’s very compelling. And they’re obviously the primary decision makers, you know, to do a big project like this. So offers that are appealing to women. Yeah, for sure. You want to, you want to think of that as your avatar or your target market. Next is timing. Okay. So I like to use slot scheduling. So, you look at how many projects you can start each month. You look at, okay, work it backward. If I were to have a project done by such and such a date, when do I need to start that project? So, then the offer is we have two or three. Construction slots are available to have your project completed by such and such a time.

If you don’t take advantage of these, your project can’t be completed until much later in the year. So again, I create urgency through scarcity. So slot scheduling is a big one for timing. So the question is, you know, how soon do you want to be living in and enjoying your new home or your new remodeling project? Oh, we only have three slots available during this time. Would you like more information, you know, about your, getting started to take those slots so you can have your project completed You just got to give them that little extra nudge that they need, you know if you can do this We can do this.

Remember that’s the idea sharp angle close now when that comes to If you’re building homes or have lots so available inventory anything non-MLS. We’ve used that before too. It’s like hey We have three four five six seven homes under construction that are not on the MLS If you would like details on them before anyone else Contact us, you know, contact us for that. So that’s a great offer for somebody looking for that quick delivery home and they don’t want to wait the 12 to 18 months it might take to get a home built. Same thing if you have lots or land for sale. We have this many lots in this particular area. They’re selling quickly. We only have this many still available.

Would you like details? You know, that’s another thing that you could do. Now, the last thing that I would, I’ll throw out there is this downsell. The vast majority of people that contact you for your offer, it may not be in the right fit. You know, maybe it’s just the wrong project, wrong location, you know, whatever. But you should really have a downsell available. And a downsell is one of those things that you just keep in your back pocket. So, if somebody contacts you for the offer, you go through your qualifying questions, and then you find out that, hey, you know what, they’re just not a good fit. Instead of just saying, sorry, we’re not a good fit. We can’t, this won’t work for you.

To say, you know what? I’m sorry. It looks like. You know, the type of project you’re considering is not really going to fit for this particular offer. However, we do have, and so you go to that downsell and so that may be something that you have to just have a, it might be just a pool of money you have available to you to say, I can, I can do this, or it might be something that you creatively come up with, you know, some downsell ideas, most of the downsells, you know, the, the, that I used to do would simply be you’d trade them up, you know, kind of on the spot. So once you understand what are the hot buttons of that lead. And then you could say, Ah, you know what? We’re not able to do this.

However, here’s an alternative. We could do this or, or I could go like this. I could say, Daiana, if we could do this, would you be willing to do this? So that again, that’s that sharp angle close. Now I can do that. I could say if. So if is a lot different than giving them the offer right now. So if I have to go back and run my numbers, if I need to talk to my owner, my company or a manager, you know, something like that, I can get out of the information and then get back to the buyer. But I, I got them on the hook at that point, you know, and that’s really what an offer is all about. So Daiana, final thoughts. 

Daiana: Well, I took some notes. I think it’s good. I never thought about the downsell to have that available. I’m always thinking about how to upsell and how to move forward, how to offer them more, but how to offer the downsell. That’s a very interesting approach too and very creative, very creative. 

Rick: The downsell becomes almost more important than the actual offer itself because the offer is all about perception. Okay. The vast, vast majority of people, if you throw an offer out there and they’re interested, the vast majority of it are not going to take advantage of it. They’re not going to, because it’s not going to fit, or you might have a limited availability. So those people that raise their hand and it’s just like, ah, it’s just not really quite a good fit for what you’re trying to do here. With the downsell, you’re going to probably use more than the actual offer yourself. So you do want to think about it. You do want to plan ahead about that, but just don’t let somebody who’s raised their hand, leave without at least throwing a downsell to them where you can maybe reel them back in and bring them into the side door versus the front door if that makes sense. 

So, if you are interested in offers or seeing how we can help you attract, capture, and convert high-quality leads so you can pick and choose your clients and jobs, go ahead and click that link below. Schedule a strategy call with me. I’d be happy to talk to you about your company, learn more, and to see if we might be able to help you.  So once again, Merry Christmas and Happy New Year, everyone. And for my brothers and sisters in Christ, may the grace of the Lord Jesus Christ, the love of God, and the fellowship of the Holy Spirit be with you all always. We will see you in the new year on Conversations That Convert. Bye, everyone. 

Daiana: Bye.