Use Professional Design to Create a New Profit Center - 8/23/2004 - Home Remodeling Interior Decorating Design

Use Professional Design to Create a New Profit Center
Bob Peterson, CGR, CAPS

In fact, we have been very successful in making design an integral part of our profit and loss (P&L). Time and again, whenever we properly develop and present professional designs to our clients, it adds to our bottom line.

If you want to promote and make design a profit center for your business, be aware of these key issues:

• The design must be crafted by a “professional.” You must be able to sell your prospects on the value of using a “professional designer.” The key is in the details.

• The final design must look “professional.” Your designs must be thorough, complete and professional. Put as much detail as you can get on the plans. Don’t show a client a set of plans that looks like they could draw it themselves.

• Listen to your client. This can be difficult, but the worst thing you can do is present a design that has no appeal to your customers or, worse yet, has no chance of being built because of cost. Listen to your clients and “wow” them with proper direction for their project.

• Be thorough. Ask key questions to find out what your clients are looking for and be aware of budget constraints. Budget is one of the most important concerns regarding design. When you arrive at your prospects’ home, start absorbing their surroundings, their habits and their lifestyle. These impressions will all become valuable influences when creating the perfect design for them.

If you listen, are professional, provide professional documents and show your clients that their project will be more successful if you can include clear details and professional plans, it is easy to sell profitable design.

Professional Design Can Ace Your Competition

Oftentimes, when we know there is competition for a job, we first sell the prospect our design. This ensures that each competitive company prices the same details and levels the playing field.

Actually, it often ends up tilting the playing field in our favor. In the process of developing and presenting the design, we do all we can to earn our clients’ respect and confidence so that, by the time construction pricing comes around, we’ve eliminated the competition.

So turn design into an important part of your business. It never hurts to have a line item in your P&L showing a much higher gross profit than the construction itself.

Bob Peterson, CGR, CAPS, is president of ABD, Ltd. of Ft. Collins, CO. He has been in the home building/remodeling industry for more than 30 years and was named Remodelor™ of the Year in 1997 and Builder of the Year in 1999 by the Colorado Association of Home Builders. E-mail Peterson for more information.