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The number one reason people
don't build is risk, and it's

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financial, emotional or time
when we're trying to convert

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someone, we need to be the least
risky option for them.

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This podcast is brought to you
by Anderson windows. So we all

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know Anderson is a trusted name
for windows and patio doors. But

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here's something you might not
know, they also make impressive

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moving glass walls called big
doors, and these moving glass

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walls can help you capitalize on
the indoor, outdoor market, even

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in a rough climate. What's more
impressive is that Anderson also

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has options for new homes and
remodels. Their folding out

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swing door was recently used in
a Michigan remodel where it

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opened up an entire wall of a
1950s era home. And in

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Minnesota, their six panel multi
glide door brought out the full

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beauty of a North Shore cabin
retreat. These Anderson big

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doors bring the outdoors in
during summer and provide ample

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views and weather protection in
the winter, and with Anderson's

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proven track record and depth of
support and training, installing

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them is easier than you might
think. For more information,

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head over to Anderson
windows.com/modern,

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craftsman. Nick. I was just up
in Connecticut last week

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installing a pivot door with
fine homebuilding and Anderson.

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So keep an eye out for the
content that we put together.

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There real world, building a
set, installing a door, sorting

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out all the details to make that
process as seamless as possible

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for you. I don't know timeline
on when that content is coming

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out, but super proud of that was
a fun job.

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So keep an eye out not to I
mean, while we patiently wait

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for Tyler's video to come out,
we also installed some of their

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big doors. We actually went out
to San Diego to their big door

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facility and use them on our
echo pond project. You could see

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that project on the NS builders
YouTube. This podcast also

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brought to you by builder trend.
You know that feeling when a

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project's down to the wire and
your clients suddenly got a

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million questions? We've all
been there juggling last minute

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punch list tight timelines and
trying to keep homeowners com,

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that's exactly what reclaim
karma tackled in their latest

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webinar. Co hosted with build a
trend, Chris and Yvonne share

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how they manage client
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with communication strategies
that actually work, plus they

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explain how build a trends
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with AI so you can stop chasing
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work if you're ready to finish
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five star client experience
every time. Don't miss this one.

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Watch it now on
demand@buildertrend.com

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slash MC client webinar. This
podcast is brought to you by

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Harnish. First impressions
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appearance speaks volumes.
Harnish workwear helps your

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It's more than a uniform. It's a

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walking representation of your
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and start building your brand
from the ground up. Which

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reminds me, I just had a package
delivered from Harnish on my

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side porch. Yeah, it came. While
I was out in the shop unloading

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stuff, forgot that we got a
delivery, and I just checked my

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email and UPS says it was
delivered. So I gotta go check

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out what's in there. Well, I
know we are colder here in

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Boston already, and I got the
crater one pants and as well as

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their hoodie. And as you can see
right now, I'm wearing the t

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shirt because, literally, it's
the only t shirt that's in my

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drawer right now. I think I have
70 Harnish T shirts, most of

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them co branded with the modern
craftsman or NS builders, but

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the crater one pants are super
interesting, guys. And I think

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it's worth if you guys are
looking for something that is,

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you know, more modern, fit,
stretchy, but also super, super

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durable. But feel like you can
wear them on the job site, or,

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for my case, at the hockey rink
seven days a week with my

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children. They, they're, they're
pretty awesome. So definitely,

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worth checking it out. Get it on
the website and yeah,

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or we're recording Yeah. All
right. So Nick, we're on a quick

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speed dating in Chicago. We are,
yeah, bougie little restaurant

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here. So we this morning. We.

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We're kicking off the event 8am
we dug into lead generation and

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marketing. We scraped the
surface of lead generation. We

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did so we used a presentation
that we've used before, we tried

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to hone it down to a 45 minute
conversation. It was still an

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hour and five minutes, and I
don't think that we touched on

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everything that we could. I
think it was, it was a good

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topic to get people's

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interest piqued, but there's
just so much to it. And

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something else that you had sent
me with regard to lead gen was

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one aspect of lead gen and
marketing, which is what, well,

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I mean, ultimately, lead
generation is everything you do

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to generate leads. Like, it's
how you get clients to know you.

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It's, you know, brief recap,
it's all the branding, it's the

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marketing. It's like creating
awareness around you. How do you

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get that client to know who you
are? But after that, it's lead

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conversion. And, you know, and I
shared this presentation, I with

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you, and I was hoping that we
would get to it. I think we're

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not going to have time to share
it live, so I figured we'd

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record a podcast on it. Lead
conversion is really, you know,

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you know who I am. How am I
going to convert you into an

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actual client? So this is after,
like, any sort of marketing for

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your business. And like, we
always talk about a funnel, like

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a sales funnel. So this is the
people you've created the

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funnel. You've created the
marketing to back that funnel,

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and you're bringing people into
this funnel now, working their

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way down through that funnel.
Let's talk, yeah, let's talk

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about the funnel, like, how
people are getting into this

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quote, unquote funnel. It's
awareness. So it's they saw my

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sign, they saw my truck. They
see that they follow me on

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social media. They saw the an ad
in a magazine. They were

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referred by a client, an
architect, referred us something

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like some way they became

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aware of who we are and what we
do. So that would be them

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entering this quote, unquote
funnel, and in terms of getting

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them from there to essentially
coming out of the bottom of that

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funnel would be like they turn
into a client. So just for for

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reference, I may I mentioned
earlier, 100 people that enter

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our funnel, meaning like they,
well, actually even further

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down. But like, not only are
they aware, but they reach out.

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100 people that reach out, only
one of them, so 1% convert into

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a client. So when I first went
into business,

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I was so concerned with landing
every single job that came

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across my plate as your yeah, as
you would be, which is actually

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not what you want. Like, I hear
one out of 100 Yeah, that that's

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ideal. Like, that's a great fit
for you, but you have to make

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sure that the more specific you
are with your ideal client

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profile, you need less customers
that are the right fit. You

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actually need a wider top of
funnel to bring in more people,

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because if you're only capturing
or landing 1% of that funnel,

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and you need three jobs.
Realistically, you might need to

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bring in 300 people, 300 leads,
right? And like the more

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specific you are. It's
counterintuitive, but you need

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more people to enter that
funnel. Well, I think the

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marketing can be widespread, and
you get people interested for

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different reasons, where it's
like some people just are

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interested because they like
what you do, not because they

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want to actually convert, where
you get hyper specific with the

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client in terms of, okay, now
they're a potential client. They

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and, you know, you want them to
self qualify ultimately. And you

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know, we've talked about how the
more process you can put in

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place in terms of the
qualification process, the

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better. So you know, on simplest
form, and what most people have

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is a form on their website. They
fill it out, it's like, name,

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budget, like, what's the
project? Give me a description,

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and we're getting that email,
and then you're vetting that,

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like, is this a is this a good
fit for us? Or you're emailing

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back with additional questions,
or you're hopping on a call, and

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that's where you're typically
determining whether or not this

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is an ideal fit, or at least,
does it seem like it's an ideal

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fit? And then you go through the
in person meeting and kind of

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continue them down this process.
But how do you, you know, say,

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say, we're at that point, we hop
on a call. Your budget's aligned

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with my expectation. You know,
you build in my area. You seem

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like a good client. We meet
like, how would I? What I

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outlined here is, how do we take
that and then bring them all the

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way to, hey, we're building your
house. Before we get to that,

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what do you why do you want, in
your opinion, why do you want

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clients to self qualify, or
potential client, clients to

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self qualify, because it allows
for the 300 to actually make its

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way through the funnel. But how
is that help like, how is self

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qualifying helping you? Well, I
think ultimately it allows them

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to understand. It basically
means that they understand our

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process ahead of us, you know,
engaging in a long.

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Your conversation. So for me,
it's you're saving like I'm a

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super small business. If I'm
spending time qualifying leads

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and vetting leads, I can't make
money doing things that make me

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money, so it's saving me money
and time and effort resources by

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allowing clients to self
qualify. But then another thing

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that's huge for me is I don't
have to tell a client that they

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don't fit my client profile,
which is like rejection, which

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I've told, like, I've literally
told people that, and they've

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gotten so upset with me, like,
my money's no good with you,

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right? It has nothing to do with
that, but for them to not feel

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the shame for whatever reason
that they don't fit your

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profile, whether it's financial,
whether it's needs, design,

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whatever that may be, you're not
the bad guy at that point. And

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you don't have to physically
reject someone, which I think is

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huge from a business perspective
as well. Yeah. I mean, just

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tactically, like, you know, one
of the things that we've tested

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in the past and plan to re
implement, is this conditional

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questioning form. And
ultimately, like we found that

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it was, it was too complicated
in the beginning, like it what

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people weren't even getting into
the funnel at all, because they

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were like, I'm not I'm confused
here. But ultimately, what it is

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we built this in type form
actually is a website you can

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build conditional form forms,
and conditional questioning is

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based on what you answer for the
one question Will will feed you

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down a certain path on the other
side. And we actually built it

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to the point where, as you
filled it out, you were taking a

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path to determine whether or not
you were so like qualifying. It

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wasn't saying, Hey, you're
qualified, but what it did is

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essentially based on what you
answered. It would, you we had a

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scoring system so it would score
like, Hey, if you know, if the

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budget's 1000 bucks a foot,
scoring is 10 out of 10, yeah,

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you know, if it's $500 a foot,
it's like, yeah, that's probably

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like a four, a three or four.
Because we just know we can't,

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we can't build that. We would
score all the questions, and if

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they scored, say, 85 and over,
we determined that that was a

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good fit. And what that did is
it brought them to you should

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get like here, schedule a call
with us so we can talk about

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your project. If it wasn't a
good fit, but it was close, we

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said we would say, it doesn't
sound like we are a good fit for

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this project. You know, happy
to, if you'd like to reach out,

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you're more than welcome to. But
it wasn't like, a direct, Hey,

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we should talk on the phone. It
was just an opportunity where

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it's like, you know, if you'd
like to further the

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conversation, here's our contact
and if it wasn't a good fit,

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hey, sorry. Like, this isn't a
good fit for us, but we'd still,

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you know, put them into our
email marketing so we would stay

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in touch. That right there, I
think is a really important

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note, because we had a client
that six years ago, reached out

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to us and we had a phone
conversation, and we the phone

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conversation was, you know, high
level, what it cost to build

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with us. And they were like, I'm
so sorry. Like, we're this way

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over our budget. You know,
appreciate the time, and I never

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thought anything of it, like
those calls happen all the time

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six years later or five years
later, that client came back to

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us and went through, you know,
some professional changes and,

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you know, and could afford to
build with us and re engaged us.

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And it wasn't until, like, a few
months into that that process is

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he's like, do you remember what?
Realized it was them, and I was

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like, I don't. I force. I was
like, truthfully, I don't. And

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he tried to, like, jog my
memory. I'm like, I'm really

219
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sorry I don't remember that. And
then years later, I or a year

220
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later, he was more specific
about when we talked, and I

221
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actually remember exactly when
that was. But the point is, is

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we kept in like, We kept in
touch. And now in that case, I

223
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don't think it was email
marketing. I think he followed

224
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us in social media and was like
watching what we did. But the

225
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point is is like you keep them
interested, and you continue to

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educate them in the process,
because ultimately, that's what

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you know, you want them to be
educated. And one of the I have

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this written down in front of
me, but the number one people

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don't build, is strictly, you
know, risk the number one reason

230
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people don't build. The number
one, yeah, the number one reason

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people don't build is risk, and
it's financial, emotional or

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time. And you know, so for us,
you know, when we're trying to

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convert someone, we need to be
the least risky option for them.

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For any like, no matter how you
cut this, like, that is how

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they're determining who they
work for, and risk is relative.

236
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It's relative to each client and
each experience too. Like, risk

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isn't just financial risk, no,
right? Like, there's a ton of

238
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risk involved with every
project. You have to understand

239
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what your client's needs. What
type of risk are you talking

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about

241
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in order to make sure that
you're, like, fitting that

242
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client's needs, but also, like,
how are you going to base

243
00:14:49,000 --> 00:14:53,380
everything on this project? Is
it timeline? Is it design? Is it

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budget? What is what? What's the
risk with regard to, and there's

245
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that famous saying, like, you
know, quality.

246
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Be price and time. Pick two. You
can't have all three. And I've

247
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always pushed back and like, you
can have all three, you just

248
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have to prioritize. Yeah, it's
like, you know, just because you

249
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want budget and time doesn't
mean quality goes out the

250
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window. It just means, like,
that is a third in priority. So

251
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for us, understanding the risk
isn't necessarily saying, what

252
00:15:16,860 --> 00:15:19,980
do you what? What are you
concerned about? It's listening

253
00:15:19,980 --> 00:15:23,540
to them talk about the project.
And one we're going through

254
00:15:23,540 --> 00:15:27,260
right now in pricing is that,
you know, client came to us,

255
00:15:27,620 --> 00:15:30,320
their budget's $2 million to do
this renovation. You know,

256
00:15:30,320 --> 00:15:33,200
they're in schematic design with
the architect. Architect puts

257
00:15:33,200 --> 00:15:36,440
together a very schematic level
of drawings. We go through it,

258
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and we realize that what is, you
know, assumed in the design is

259
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probably, like, closer to two,
seven to eight. And so we put

260
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together this high level
schematic price. And we, what we

261
00:15:48,100 --> 00:15:50,920
used to do is we used to go back
to the client and say, Hey, what

262
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you're designing so far is
actually 20 million. And, you

263
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know, forever we were like, we
would the it, the process, like,

264
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unraveled from, yeah, and I'm
like, what's going on? Like,

265
00:16:01,620 --> 00:16:03,960
we're being super honest. Like,
that's our whole thing. Like,

266
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we're transparent, we're honest.
Like, that's great, but you got

267
00:16:07,680 --> 00:16:10,800
to remember that they're paying
you for pre construction, and

268
00:16:10,800 --> 00:16:14,040
we're their advocate. And they
communicated that their budget's

269
00:16:14,520 --> 00:16:18,540
$2 million the design is at
schematic level, meaning, like,

270
00:16:18,540 --> 00:16:20,900
there's very little information,
and we're telling them that

271
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right out the gate, you're 800
over. So now they're like,

272
00:16:27,800 --> 00:16:31,760
they're why we hired you. Yeah,
they're spiraling. And now it's

273
00:16:31,760 --> 00:16:34,340
like, Now this seems like a huge
risk. And it's like, in this

274
00:16:34,340 --> 00:16:36,500
case, the house is, like,
partially demoed, and like, they

275
00:16:36,500 --> 00:16:39,860
bought it and they're paying
rent elsewhere. It's like, this

276
00:16:40,040 --> 00:16:44,200
seems like a massive risk, so we
didn't do that. Now. We said,

277
00:16:44,200 --> 00:16:46,900
okay, that's where it's
trending. We need to go through

278
00:16:46,900 --> 00:16:49,960
this and understand what's it
going to take to do a project

279
00:16:49,960 --> 00:16:52,840
for $2 million because there's
still enough information where

280
00:16:52,840 --> 00:16:55,960
we can help guide that. So we
looked at the scope, and we

281
00:16:55,960 --> 00:16:59,080
actually worked backwards and
said, All right, in order for us

282
00:16:59,080 --> 00:17:02,160
to hit that 2.8 I mean $2
million number. Here are the

283
00:17:02,160 --> 00:17:06,300
things that we need to consider,
and some of them are removing

284
00:17:06,300 --> 00:17:10,260
scope, reducing scope, or
deferring scope, meaning

285
00:17:10,260 --> 00:17:12,540
there's, you know, oftentimes
millwork in rooms that they're

286
00:17:12,540 --> 00:17:15,420
like, I actually won't ever use
that. Yeah. So we can turn that

287
00:17:15,420 --> 00:17:19,260
into furniture or do it later.
So for us, you know, we

288
00:17:19,260 --> 00:17:22,040
basically put together this $2
million option. So now we need

289
00:17:22,040 --> 00:17:25,340
the client, and I say, hey, we
you know, we're at schematic.

290
00:17:25,340 --> 00:17:28,760
This is where we're at. This has
been our process so far. We have

291
00:17:28,760 --> 00:17:31,280
two things to look at. Today,
we've put together a budget on

292
00:17:31,280 --> 00:17:34,220
how we hit your budget of $2
million and we walk them through

293
00:17:34,220 --> 00:17:36,740
that. I said the second budget
we're going to walk through is

294
00:17:37,580 --> 00:17:40,100
exactly what is designed with
the assumptions that have been

295
00:17:40,100 --> 00:17:43,000
communicated. And I want to be
upfront like that is trending

296
00:17:43,000 --> 00:17:46,600
$2.8 million we have both
options, because now it's not,

297
00:17:46,660 --> 00:17:49,240
oh my god, this is over budget,
and we're never going to get

298
00:17:49,240 --> 00:17:52,120
there. It's, here's what I can
do for what I can afford, but

299
00:17:52,120 --> 00:17:54,940
here's what I've been asking for
from a design and ultimately,

300
00:17:54,940 --> 00:17:59,200
where that conversation ends up
is they look at 2,000,002 eight.

301
00:17:59,680 --> 00:18:03,840
Okay, let's end up here. And
that's two, one or two. So for

302
00:18:03,840 --> 00:18:07,620
reference, what are like this?
The constraints of this project,

303
00:18:07,800 --> 00:18:12,720
new construction. This is a
renovation, renovation. How many

304
00:18:12,720 --> 00:18:17,640
square feet? 3200 like full gut
renovation. It was originally a

305
00:18:17,640 --> 00:18:21,020
full gut, and when we prior to
the schematic, we said, if

306
00:18:21,020 --> 00:18:24,080
you're going to do a full gut
based on historic, you're going

307
00:18:24,080 --> 00:18:25,700
to be that this was a 3.2

308
00:18:26,960 --> 00:18:30,260
3.5 number based on other
similar projects. So they said,

309
00:18:30,320 --> 00:18:34,820
Let's not do that. Let's look at
partially gutting it and rent

310
00:18:34,820 --> 00:18:37,640
and working within the confines,
like not stripping out

311
00:18:37,640 --> 00:18:40,840
mechanicals, not redoing all the
plumbing. So what's like, the

312
00:18:40,840 --> 00:18:46,360
scope difference between two,
seven and two. What in this, in

313
00:18:46,360 --> 00:18:49,960
this specific example, it is,
there's three staircases that

314
00:18:49,960 --> 00:18:54,700
are on the plans to be torn out
and rebuilt. So we recommended

315
00:18:54,700 --> 00:18:58,660
not removing them and working
within the confines of the the

316
00:18:58,720 --> 00:19:02,040
existing are they getting
relocated? Nope, one of them for

317
00:19:02,040 --> 00:19:06,060
the roof was so we said, let's
not relocate the roof one. And

318
00:19:06,060 --> 00:19:09,660
ultimately, it was a nice to
have, not a need to have, yeah.

319
00:19:09,840 --> 00:19:13,500
So don't, don't change the roof
access. Now. You're not doing

320
00:19:13,500 --> 00:19:17,400
roof work or removing the hatch.
Don't remove the two staircases

321
00:19:17,400 --> 00:19:22,040
on the lower levels. Instead,
modify the existing simplify the

322
00:19:22,040 --> 00:19:24,200
molding package, because the
molding package is super

323
00:19:24,200 --> 00:19:27,320
complex, and multiple multiple
profiles being built up into,

324
00:19:27,500 --> 00:19:28,520
like, heavy molding,

325
00:19:29,660 --> 00:19:32,240
go from 100% custom cabinetry to
100%

326
00:19:33,320 --> 00:19:36,920
semi custom. Now I say that
knowing that they'll come back

327
00:19:36,920 --> 00:19:39,620
and be like, I'm fine with all
semi custom, with the exception

328
00:19:39,620 --> 00:19:42,220
of, like, the kitchen, yeah, we
want to do custom there. Great.

329
00:19:42,340 --> 00:19:43,900
Like, this is how we do the
volley.

330
00:19:45,640 --> 00:19:49,540
There was masonry repointing on
the whole building. It was a

331
00:19:49,600 --> 00:19:53,260
again, like, you probably need
to do it. But it was also scope.

332
00:19:53,260 --> 00:19:56,800
That wasn't part of the original
deal and but we are recommending

333
00:19:56,800 --> 00:19:59,500
it. So we said, we'll pull that
out. You don't actually have to

334
00:19:59,500 --> 00:19:59,920
do it now.

335
00:20:00,000 --> 00:20:02,640
Now you can do it anytime, but
it is something that you should

336
00:20:02,640 --> 00:20:05,280
recommend. So ultimately, we
gave them the path to get to

337
00:20:05,280 --> 00:20:09,000
that $2 million and they get to
look at that and say, All right,

338
00:20:09,000 --> 00:20:10,920
I understand the difference
between the two. I know I

339
00:20:10,920 --> 00:20:14,100
definitely don't want the 2.7 I
see the 2 million, but there are

340
00:20:14,100 --> 00:20:16,500
a few things in there that I
feel like I'm not getting the

341
00:20:16,500 --> 00:20:20,420
house I want. Yeah, so in the
she actually asked the question

342
00:20:20,420 --> 00:20:22,640
is, like, so since I'm not
getting what I want, Does that

343
00:20:22,640 --> 00:20:25,280
just mean it's going to be more
than 2 million? I said no. It

344
00:20:25,280 --> 00:20:28,220
means, like, I want to see what
we're missing out of that 2

345
00:20:28,220 --> 00:20:31,460
million and then see what the
difference that might be a 2.2

346
00:20:31,880 --> 00:20:35,180
number. But then there might be
things in the 2 million that you

347
00:20:35,180 --> 00:20:38,060
still are okay, deferring, yeah,
where it's like, All right, we

348
00:20:38,060 --> 00:20:41,860
went from all semi custom to we
don't even need mill work on the

349
00:20:41,860 --> 00:20:45,460
third and fourth floor. So then
it's like, all right, it's and

350
00:20:45,520 --> 00:20:49,360
ultimately that the point of
that meeting is, you know, in

351
00:20:49,360 --> 00:20:51,700
talking about conversion, is
like, the point of that meeting

352
00:20:51,700 --> 00:20:54,700
is to get them to understand
that we are here, and we are

353
00:20:55,060 --> 00:20:58,300
ultimately able to get them what
they're looking for, whether

354
00:20:58,300 --> 00:21:01,020
that is the full design or
whether that is the the intended

355
00:21:01,020 --> 00:21:04,800
budget. How many, how many
clients do you feel make their

356
00:21:04,800 --> 00:21:07,980
way through the self
qualification, through your

357
00:21:07,980 --> 00:21:13,680
funnel that you land like, okay,
so I feel, I'm confident that

358
00:21:13,680 --> 00:21:18,240
this is an ideal client fit.
We're gonna take this to the

359
00:21:18,240 --> 00:21:21,140
next level. Like, how many do
you feel you're signing for pre

360
00:21:21,140 --> 00:21:23,480
construction out of 105 out of
105

361
00:21:25,340 --> 00:21:29,780
out of 100 and then, you know, I
mean, I say one, like one of

362
00:21:29,780 --> 00:21:33,800
those converts, but, yeah, like,
realistically, those five, I

363
00:21:33,800 --> 00:21:37,640
mean, probably convert into full
construction. It's probably

364
00:21:37,640 --> 00:21:41,860
closer to two or, yeah, half. So
a lot of people think that pre

365
00:21:41,860 --> 00:21:46,900
construction is this like golden
ticket to getting paid and then

366
00:21:46,900 --> 00:21:49,540
building a job, which we've
spoken about it before. There's

367
00:21:49,540 --> 00:21:53,260
so there's like a consulting
aspect of that. And, yeah, we're

368
00:21:53,260 --> 00:21:56,260
the builder. We're hoping to
build the house, complete the

369
00:21:56,260 --> 00:22:01,860
renovation, or the remodel. But
in in the aspect of pre

370
00:22:01,860 --> 00:22:06,060
construction, we are just
providing a service. Like, it's

371
00:22:06,060 --> 00:22:09,360
not a guaranteed build at that
point. It's not and I think that

372
00:22:09,360 --> 00:22:11,820
the sooner people realize that,
the sooner they can they will be

373
00:22:11,820 --> 00:22:14,340
successful with the pre
construction, yeah, because,

374
00:22:14,640 --> 00:22:17,280
like, Sure, you're the whole
point of pre construction. I

375
00:22:17,280 --> 00:22:20,540
know you don't think this is the
word, but is to de risk

376
00:22:20,540 --> 00:22:24,380
construction, and that is the
intent. I think it's de hyphen

377
00:22:24,380 --> 00:22:28,400
risk. So I mean, I would assume
that that would be de hyphen

378
00:22:28,400 --> 00:22:31,820
risk. I feel like maybe de
escalate the risk. I don't know

379
00:22:31,880 --> 00:22:34,820
whatever de risk the
construction. I keep saying, it

380
00:22:34,820 --> 00:22:38,120
sounds good, it's good copy, and
Doug said, lower the risk. But

381
00:22:39,080 --> 00:22:41,800
ultimately, like, that's the
goal of pre construction. And to

382
00:22:41,800 --> 00:22:45,580
your point, a lot of guys are,
like, so focused on flying

383
00:22:45,580 --> 00:22:48,640
through pre construction so they
can build. It's like, Dude,

384
00:22:48,640 --> 00:22:52,060
you're like, the client has high
anxiety about the build. You got

385
00:22:52,060 --> 00:22:55,420
to get you got to make sure that
you they don't have anxiety

386
00:22:55,420 --> 00:22:58,480
starting construction, and this
is your time to do it. Now, for

387
00:22:58,480 --> 00:23:03,180
you as a builder, it's a really
easy way to get a client on

388
00:23:03,180 --> 00:23:07,380
board to to, like, get an
understanding of the project and

389
00:23:07,380 --> 00:23:11,400
help develop it. It's exactly
why the wrong way to go about

390
00:23:11,400 --> 00:23:15,780
that 2.7 example is, like, you
price it, it's 2.7 you deliver

391
00:23:15,780 --> 00:23:20,100
2.7 great. You've delivered bad
news. Yeah. I mean also, like,

392
00:23:20,580 --> 00:23:23,900
for pre con, even in that
instance, right, two seven, you

393
00:23:23,900 --> 00:23:27,260
have to have some sort of
baseline metric to go off of,

394
00:23:27,260 --> 00:23:27,620
right?

395
00:23:28,760 --> 00:23:32,660
Maybe that number is one seven,
but like, you don't know where

396
00:23:32,660 --> 00:23:35,540
that's going to land, but you
have to have a baseline to work

397
00:23:35,540 --> 00:23:38,420
off of, where we're good here,
we want to go up. We want to go

398
00:23:38,420 --> 00:23:42,520
down, like one seven, right? We
really anticipated doing a

399
00:23:42,520 --> 00:23:44,800
little bit more, and we can
stretch that, but like, there

400
00:23:44,800 --> 00:23:49,840
needs to be some sort of basis
reference point, like, in order

401
00:23:49,840 --> 00:23:54,160
to work off of. And that's
always that first round. I

402
00:23:54,160 --> 00:23:57,700
always call it napkin budgeting,
where, yeah, it's like, my

403
00:23:57,700 --> 00:24:01,380
budgets always come in high
initially. But the difference

404
00:24:01,380 --> 00:24:05,160
here is, like, that's fine. You
can you can come in high but

405
00:24:05,160 --> 00:24:08,340
don't deliver a high budget. If
they've asked you for for a $2

406
00:24:08,340 --> 00:24:11,340
million you also just have to
understand that that's just part

407
00:24:11,340 --> 00:24:14,460
of the process. In order to get
to where you need to be, it's

408
00:24:14,460 --> 00:24:18,480
not a seamless process. It's not
one and done. That's just one

409
00:24:18,480 --> 00:24:24,200
aspect of this. And if you want
to land those leads, if you want

410
00:24:24,200 --> 00:24:27,560
to convert those leads, you have
to understand that, like, You're

411
00:24:27,560 --> 00:24:30,980
not always going to deliver good
news. It's not always going to

412
00:24:30,980 --> 00:24:34,760
be ideal news, but you do have
to convert that. This is why,

413
00:24:34,760 --> 00:24:38,420
like pre con is consulting. It's
like helping them to get to the

414
00:24:38,420 --> 00:24:42,400
goal. And too many people just
focus on the wrong, wrong

415
00:24:42,400 --> 00:24:45,040
outcome. It's like, Yes, you got
to, you got to create a

416
00:24:45,040 --> 00:24:47,920
baseline, but you got to be the
advocate for the project. You

417
00:24:47,920 --> 00:24:51,220
know, you the amount of times I
hear people like, well, that's

418
00:24:51,220 --> 00:24:54,460
what was designed. It's like,
yeah, you're being paid to

419
00:24:54,460 --> 00:24:58,120
consult on the design. Yeah,
you're being, you're being paid

420
00:24:58,180 --> 00:24:59,920
to help them get what they want.

421
00:25:00,120 --> 00:25:03,060
For as close to what they want,
for what they can afford. And

422
00:25:03,060 --> 00:25:05,640
you also have to understand at
that point, like, you have to be

423
00:25:05,640 --> 00:25:06,120
able to

424
00:25:07,380 --> 00:25:10,500
quantify that design with regard
to

425
00:25:11,640 --> 00:25:15,540
concrete numbers for
Construction and Management, but

426
00:25:15,540 --> 00:25:19,800
also what's the most critical,
what's the most important for

427
00:25:19,800 --> 00:25:23,900
this client? Right? Right? Like,
yeah, we're a two, seven. What

428
00:25:23,960 --> 00:25:27,380
is the most important aspect of
this project? What can you not

429
00:25:27,380 --> 00:25:31,280
do without what can we push what
can we possibly face? What can

430
00:25:31,280 --> 00:25:35,180
we get rid of? Who's to say that
the initial design, like,

431
00:25:35,660 --> 00:25:37,340
without any sort of

432
00:25:38,600 --> 00:25:41,620
numbers apply to that from the
architect, where there's that,

433
00:25:41,620 --> 00:25:45,040
like, there's so little any
understanding of what's going

434
00:25:45,040 --> 00:25:48,280
on, what they're the client
really has any understanding of

435
00:25:48,280 --> 00:25:50,620
what that's going to cost. I
mean, the clients, like, why,

436
00:25:50,680 --> 00:25:52,000
you know, why are you factoring
$100,000

437
00:25:53,080 --> 00:25:56,620
for HVAC? It's like, I don't
know. We're just right now,

438
00:25:56,620 --> 00:26:00,600
that's a number. And, like,
because we've done a project

439
00:26:00,600 --> 00:26:03,240
that has a similar size, and we
were able to accomplish that for

440
00:26:03,240 --> 00:26:07,020
100 grand, and we got a pretty
nice system out of it. If I need

441
00:26:07,020 --> 00:26:10,320
to cut my HVAC budget, that's
fine. We can target an $85,000

442
00:26:11,220 --> 00:26:14,760
install, but we have not defined
what that install is, so the

443
00:26:14,760 --> 00:26:17,340
wrong way to go about that is
apply an $85,000

444
00:26:18,360 --> 00:26:22,340
budget and then go hire an
engineer or your and talk to

445
00:26:22,340 --> 00:26:25,040
your HVAC guy and be like, hey,
I need to price it on this. And

446
00:26:25,040 --> 00:26:27,800
then have come, have it come
back at 100 grand. It's like,

447
00:26:27,800 --> 00:26:31,460
Oh, it's 100 grand. It's like,
Well, what was established like

448
00:26:31,640 --> 00:26:35,180
instead, it's like, Hey, we're
trying to accomplish an HVAC

449
00:26:35,420 --> 00:26:38,600
design for this project at 85
grand. Yeah, okay, so we're

450
00:26:38,660 --> 00:26:41,140
definitely not gonna be able to
be able to do a heat pump

451
00:26:41,140 --> 00:26:44,320
system, but what we could do is
a traditional, you know, forced

452
00:26:44,320 --> 00:26:47,800
air system with a hydra loop.
It's like, Great, let's propose

453
00:26:47,800 --> 00:26:53,440
that they might not want that.
But if you're ideally, like, we

454
00:26:53,620 --> 00:26:56,500
they're asking for 2 million
like, show them what they get

455
00:26:56,500 --> 00:27:00,300
for $2 million and that might be
a hydra loop HVAC system, which

456
00:27:01,200 --> 00:27:06,240
most clients don't even care.
Yeah, but you like, we like,

457
00:27:06,660 --> 00:27:10,140
forget that that is a decision
that could be made in order to

458
00:27:10,140 --> 00:27:13,080
save costs. Instead of creating
this like, well, we only do, we

459
00:27:13,080 --> 00:27:16,680
only do heat pumps. It's like,
that's fine. If your budget is

460
00:27:16,680 --> 00:27:19,620
not the concern you only do heat
pumps, then you need to cut your

461
00:27:19,620 --> 00:27:22,580
budget elsewhere and explain to
the client, like, you're gonna

462
00:27:22,580 --> 00:27:24,740
spend more money on HVAC,
because that's part of our

463
00:27:24,740 --> 00:27:28,580
ethos. And it's like, well, the
client doesn't value that, yeah.

464
00:27:28,580 --> 00:27:31,220
Like, we're in a different
position here, where it's like,

465
00:27:31,220 --> 00:27:33,440
set the parameter. It's similar
to the mill work, where it's,

466
00:27:33,560 --> 00:27:37,580
you know, this particular job,
we had 350 grand for projected

467
00:27:37,580 --> 00:27:41,440
millwork costs. So in the VE
exercise, we said, Well, why

468
00:27:41,440 --> 00:27:44,800
don't we cut that to 175 and the
media question is, like, how are

469
00:27:44,800 --> 00:27:46,960
we going to do that? It's like,
how are we going to do what?

470
00:27:46,960 --> 00:27:50,080
Like, cut it to 175 only half
the amount of molding. I'm like,

471
00:27:50,200 --> 00:27:53,380
no, just, I mean, just the
cabinetry. Like, well, we don't

472
00:27:53,380 --> 00:27:56,140
even know what the cabinetry is.
We we have assigned a value to

473
00:27:56,140 --> 00:27:57,700
it. So if someone said, Hey, I
have 175

474
00:27:58,840 --> 00:28:00,120
grand in my on the table right
now,

475
00:28:01,620 --> 00:28:04,260
put cabinetry in my house. You
could put cabinetry in my house

476
00:28:04,260 --> 00:28:08,100
for 175 grand. What it is is
TBD, but if you know, you'd have

477
00:28:08,100 --> 00:28:08,160
175

478
00:28:09,300 --> 00:28:13,200
grand, you could deploy that
money all in the kitchen. Or you

479
00:28:13,200 --> 00:28:16,980
could deploy it with semi custom
here, and like Home Depot vanity

480
00:28:16,980 --> 00:28:20,660
here, or whatever the case is
like, you can deploy that. I

481
00:28:20,660 --> 00:28:21,740
mean, you could spend 160

482
00:28:21,000 --> 00:28:23,700
on the kitchen and then 15 on
the rest of the house, right

483
00:28:23,700 --> 00:28:28,800
where it's like, we're just
gonna put we're gonna all we're

484
00:28:28,860 --> 00:28:32,820
doing is set from now. All we're
doing is setting a target and

485
00:28:32,820 --> 00:28:35,700
then working backwards from
that. And that's part of this

486
00:28:35,700 --> 00:28:40,080
whole pre construction
consultant. And as far as

487
00:28:40,500 --> 00:28:44,280
converting these leads like,
obviously, they're through the

488
00:28:44,280 --> 00:28:48,945
funnel now, converting them from
a potential client to somebody

489
00:28:48,945 --> 00:28:51,765
who's ready to sign up for pre
construction, all of this

490
00:28:51,765 --> 00:28:56,025
education, all of this
consulting, is just instilling

491
00:28:56,025 --> 00:29:00,045
that trust in that client, that
they're willing to take the next

492
00:29:00,045 --> 00:29:04,005
step in the relationship with
you, where it's like, we're

493
00:29:04,005 --> 00:29:06,585
still not sure we love what you
do. We don't understand the

494
00:29:06,585 --> 00:29:09,630
cost, but like, you don't have
them signed. You don't fully

495
00:29:09,630 --> 00:29:12,390
have their trust at this point.
So to come in and say it's two

496
00:29:12,390 --> 00:29:16,290
seven, this is just what, hey,
I'm not the architect. You hire

497
00:29:16,290 --> 00:29:18,450
the architect, whatever that
conversation, yeah, like,

498
00:29:18,450 --> 00:29:21,090
whatever that conversation, they
still don't trust you at this

499
00:29:21,090 --> 00:29:24,090
point. So if you're
automatically not a team player,

500
00:29:24,390 --> 00:29:27,330
you're pointing fingers like you
just jaspered, yeah, like

501
00:29:27,510 --> 00:29:29,970
they're not gonna hire you to do
that job. But if you come to

502
00:29:29,970 --> 00:29:33,315
them like you said, present
multiple options. Here's what I

503
00:29:33,315 --> 00:29:37,335
don't love about the two. Oh,
here's what I don't love about

504
00:29:37,335 --> 00:29:40,755
the two. Seven. Like, here are
your options, here's pros, cons.

505
00:29:40,755 --> 00:29:44,655
Here's maybe good, better, best.
Here's where I think that you

506
00:29:44,655 --> 00:29:46,095
could save some money.

507
00:29:47,320 --> 00:29:50,200
At the end of the day, I'd like
to see you in this range. You're

508
00:29:50,200 --> 00:29:53,680
just you're building, the
rapport you're creating, the

509
00:29:53,680 --> 00:29:56,500
trust you're being a steward for
that client, a steward for that

510
00:29:56,500 --> 00:29:59,680
project, and you have their best
interests in mind. They feel

511
00:29:59,680 --> 00:29:59,920
safe.

512
00:30:00,000 --> 00:30:05,580
They feel protected. They feel
as though the risk has been deed

513
00:30:06,840 --> 00:30:07,800
or lowered.

514
00:30:10,560 --> 00:30:11,580
Right where it's like

515
00:30:12,600 --> 00:30:17,340
getting them through the funnel
is not enough. You can't stop

516
00:30:17,340 --> 00:30:20,360
there. And it's just like, even
at pre con, you can't stop

517
00:30:20,360 --> 00:30:23,360
there, like you're not
contracted to do the job, yet

518
00:30:23,660 --> 00:30:26,120
you may not be nailing the
numbers, you may not be hitting

519
00:30:26,120 --> 00:30:29,660
the client's program. The design
may not be what they want, like

520
00:30:30,020 --> 00:30:33,440
it's not done until it's done,
and then you obviously have to

521
00:30:33,440 --> 00:30:36,560
play the dance at the song and
dance for all of construction.

522
00:30:36,860 --> 00:30:41,800
But converting that lead is such
a critical aspect of this that I

523
00:30:41,800 --> 00:30:44,800
think a lot of us, once we
ensure client fit, we get

524
00:30:44,800 --> 00:30:48,460
excited about the project and
we're ready to sign this. Like,

525
00:30:48,460 --> 00:30:51,520
you have to understand this job
is doable based on all the

526
00:30:51,520 --> 00:30:53,980
parameters and information that
you have, and you don't have a

527
00:30:53,980 --> 00:30:56,740
lot right now. So like, you're
gonna get in bed with somebody

528
00:30:56,740 --> 00:31:01,200
and sign somebody to a job and
pre construction, and then get

529
00:31:01,200 --> 00:31:03,960
into this and be like, Well,
yeah, this job literally is not

530
00:31:03,960 --> 00:31:07,740
doable anywhere close to this.
And how's that helping anyone?

531
00:31:07,800 --> 00:31:10,080
Right? It's not helping you.
It's not helping the architect.

532
00:31:10,080 --> 00:31:13,380
It's not helping anyone, like
any of the project stakeholders,

533
00:31:14,160 --> 00:31:16,380
and it's not the right thing to
do. So like, you have to

534
00:31:16,380 --> 00:31:20,040
understand what is, what is your
lead gen process look like. But

535
00:31:20,040 --> 00:31:23,180
then also, how are you going
from now I've distilled that

536
00:31:23,180 --> 00:31:26,540
down to five out of 100 How am I
going to sign this one out of

537
00:31:26,540 --> 00:31:30,320
that five, like the 20% How do I
get the client what they want

538
00:31:30,500 --> 00:31:34,280
within the parameters that they
can afford? And so much of that

539
00:31:34,460 --> 00:31:37,520
is like we spoke about in the
lead gen of marketing,

540
00:31:37,520 --> 00:31:41,500
understanding what makes your
business profitable, viable and

541
00:31:41,500 --> 00:31:42,460
sustainable,

542
00:31:43,540 --> 00:31:48,160
while in developing that and
like completely immersing that

543
00:31:48,160 --> 00:31:51,400
in the needs of your client. But
you have to protect yourself,

544
00:31:52,360 --> 00:31:54,880
which I think a lot of people
drop the ball on, or you get

545
00:31:54,880 --> 00:31:58,660
excited about a project, numbers
look good. You want to sign

546
00:31:58,660 --> 00:32:02,580
this. Let's move on without
really dialing in, what that

547
00:32:02,580 --> 00:32:04,020
that conversion looks like,

548
00:32:05,580 --> 00:32:08,940
Guys, if you want, I have a
whole presentation on this for

549
00:32:08,940 --> 00:32:11,460
lead conversion. If you guys
want that, head over to our

550
00:32:11,460 --> 00:32:14,520
Instagram, find the clip that is
associated with this, or just

551
00:32:14,580 --> 00:32:20,420
send us a message and DM us lead
conversion, and we'll send that

552
00:32:20,420 --> 00:32:24,740
presentation to you so you can
comb through it and see all the

553
00:32:24,740 --> 00:32:27,800
fancy graphics I added. Wait
live from CCS.

554
00:32:27,000 --> 00:32:30,480
See you guys.

