Home Improvement Win-Win Negotiating in a Down Economy

Today, more than ever, it’s important to make every dollar count. But to do that, you want to increase the value received, not just lower the price. One thing to keep in mind is that in successful negotiating, there’s no such thing as a win-lose.

I’m not saying that it’s impossible to take advantage of another’s misfortune or changed circumstances, only that it often produces undesired results. It’s more likely a recipe for both parties to lose. If an agreement can be worked out that both parties are happy with, a synergy can be created that will be mutually beneficial, with outstanding results.

I operate a five year old Home Improvement company called Details Home Services. As a contractor in the Northern Virginia/DC Metro area, I visit the local Home Depot stores almost daily, and know much of the staff. In the last year, many of my competitors have gone out of business. The ProDesk is less busy, much like the rest of the store. Management confirms the slowdown.

Those of us that remain in business have multiple reasons. But there is business out there, and good business. At present, I have more qualified prospects than at any other time in the 5 year life of my business. In this down economy, I may be willing to make certain concessions, but am very concerned with any potential dilution of my value proposition, and that’s my key.

I’ve never competed on low price, rather on high value. I operate a “high touch” business, where I spend lots of time with my prospects to make them customers, and lots more to make them happy customers. My best client is one who expects a lot, but puts high value on customer service, attention to detail, and the process as well as the end result of a home improvement project. As such, while willing to negotiate, I prefer a straight-forward approach. Tell me your motivations and constraints, and let me tell you mine. There should be a good compromise if both parties act in good faith.

I often tell prospects that there are three key issues with a home improvement project: time, quality, and cost. They get to choose any two, but only two. If they want high quality and a fast turnaround, it will cost a lot. If timeframe is more flexible, a high quality job can be delivered for less cost. A fast job done quickly is unlikely to be high quality.

I have three recommendations. The first is obvious: get multiple bids. Have a budget in mind, and know what you want done. The better you can describe the what and why of your plans, the better contractors will be able to provide good proposals to bring them to life. Second, decide the level of detail you want and need, AND are willing to pay for. While discussing the project, pay attention to what the contractor says, and how he says it. If he leads with price, he might not be the contractor you want, as he’s showing his value, or lack of it. The one you want is the one who stresses his strengths, but is humble enough to make concessions that add to the experience.

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