The Selling Skills Builders Need to Thrive in Recessions

So it’s here - officially . 

Recession! 

And you are a bit worried - wondering what you need to do to get enough work to survive? 

Well, don’t panic. Take action. In a recession building businesses face a changing set of circumstances: client’s buying habits change; there is less available money; jobs get cancelled and some builders go bust. Does that mean you should close up shop? No! Not at all. But there will be changes.

Now, most likely you are like the builders I know. Totally resourceful. Well able to handle unexpected circumstances. Things that happen in a build that no one can predict, but you handle it with ease! So, why not simply think of a recession as just another unplanned-for event. Unleash your problem solving abilities and find your way through. You may even discover ways to thrive. 

One crucial thing is to master a new set of sales skills - sales skills that are specifically tailored to the demands of a downturn. In this article, we will explore some of the essential skills that you can implement to not only survive but also to excel. By honing these skills, you will be better positioned to meet the changing market dynamics - securing a steady stream of sales. 

1  Builders Need To Be Strategic in Target Marketing During Recession

Effective prospecting is vital during a recession. You need to identify and prioritise those target markets that have a higher likelihood of generating sales - people who are less affected by recession. Then, focus on directing your marketing to these potential clients. 

Get a really good understanding of your target market’s pain points. They may not be the same as your own pain points, or even of the people with whom you socialise. Research their needs and their budgets. Then tailor your marketing and your sales process to present customised solutions that resonate with these specific audiences. 

2  Value Base Your Selling: Key For Builder Business Success

In a recession, if you are still generating leads from amongst the same sector of the population as you were during previous years, then you are likely to notice an increase in price sensitivity. Unfortunately, many builders don’t know how to accommodate price sensitive people. Sometimes they drive them away by emphasising how much costs are rising. Or, on the other hand, they risk their own business’s security by getting into a discounting war with another builder. Everyone loses! 

Rather you need to shift your sales approach from price-driven to value-driven. Emphasise the long-term benefits of your service and the return on investment that quality construction and craftsmanship can provide. And tell them about your guarantee. If possible, clearly outline your unique value propositions. It might be the energy efficiency of your plans or your sustainable building practices. Or the durability of the materials you use. It may be your superior customer experience during the build and your follow up service afterwards. 

The thing is, when you demonstrate the value of what you offer, you help your potential client to see beyond the short-term costs and to appreciate the long-term advantages of your solutions.

3  Build Trusting Relationships 

Trust is paramount during challenging economic times. So focus on building strong relationships with potential clients. Be polite, reliable and transparent. Demonstrate your expertise by providing testimonials. Or better still, show them your previous work. Present some case studies that highlight  how you have achieved satisfied clients. 

Actively listen to your clients' concerns and address those concerns proactively (before they arise) especially during your early encounters. E.g. In the early stages of meeting with your prospective client, you might say, 

“Some of our clients have been concerned that their building costs will blow their budget. While it’s true that building a home does take a long time and some input costs cannot be fully guaranteed, be assured that we will not ask you to pay for anything that is not listed in the specifications. We take great care in including everything. 

Also, if you wish, we will give you the opportunity to pre-purchase many of your building materials so that you can lock in the current prices. 

However, if something completely unexpected does arise we will inform you immediately and work with you to find the best way forward. 

At no time will you incur any additional cost without your full agreement.”  

By nurturing trust and fostering open communication, you can develop long-lasting relationships that lead to referrals and possible repeat business.

4  Adapt Your Negotiation Skills

During a recession, negotiation skills become vital in securing favourable deals. You may need to be flexible and willing to explore alternative options in order to accommodate your clients' budgets. You may need to reduce the scope of a build or a renovation, but do so without compromising profitability. 

Focus on win-win outcomes and creative solutions that satisfy both parties. Understand the value of any “sweeteners” you are offering and be prepared to justify your pricing - while at the same time being open to reasonable compromises. By mastering your negotiation skills, you will better navigate the tougher economic conditions, while still gaining mutually beneficial agreements.

Conclusion

In a recessionary environment, sales skills play a crucial role to the success of most building companies. By strategically prospecting and targeting specific markets, shifting to value-based selling, building trust and relationships, effectively handling objections, and adapting your negotiation techniques, you can better position yourself for success. 

Further, by making changes early and continuously honing your sales abilities (and allowing time to learn) you will more confidently navigate the challenges that recession brings. 

You may even not simply survive - but thrive. 

P.S. If you're ready to work on your business and thrive during these challenging times, schedule a one-on-one business review and planning session with me. Just send an email to graeme@thesuccessfulbuilder.com and I’ll get in touch.