Podcast Episode 004 - Why homeowners pick one contractor over another. Our TQB framework

Description

Homeowners have dozens of remodelers, roofers and contractors to choose from, and most of them make up their minds before your phone ever rings.

In this episode, Matt and Booker are joined by Kevin, one of our top account managers at United Foundry. Drawing on conversations with remodelers and homeowners over the years, we break down the TQB framework — trust, quality and budget, plus timeline — and how it should shape every touchpoint, from your website and Google Business Profile to your first call, your estimate, contract and your final walkthrough.

We cover:

• The TQB framework: the three things every homeowner is quietly asking about you, and why timeline is the fourth.

• Budget creep and hidden costs: how to own the money conversation from day one, and why "lowball, then nickel and dime" gives the whole industry a bad name.

• The mover test: what "don't break my stuff" teaches you about speaking to what customers actually care about.

• First impressions that happen without you: why a 4.9 rating can beat a perfect 5.0, and why your gallery should show the work you want more of — not 1990s glass-block showers or half-finished jobs.

• Best builder vs. best known: why great work doesn't pay if nobody can find you, and what it means to be "five-mile famous."

• Financing as a sales tool: how to find out if a homeowner is paying cash or financing without asking directly.

We wrap up with four takeaways you can put to work this week.

Want help showing up as the obvious choice in your market? Book a strategy call with United Foundry at unitedfoundry.com.

Transcript

[00:03] Matt: All right guys, we're super excited to have a special guest. I'm joined today by my co-host, Booker. And today we have one of our top — probably the top — account manager who works with us here at United Foundry, Kevin. Hello, Kevin. Welcome to the show.

[00:19] Kevin: Thank you very much. Appreciate the opportunity to be here.

[00:23] Matt: Yeah, awesome. So today we're going to try to get in the mind of a customer — specifically for companies that deal with homeowners. If you're a roofing company or a remodeling company, this is business-to-consumer. The customer is a homeowner, right?

We're going to try to unpack all the conversations we've had with remodelers and clients over the last year-plus, explain how homeowners see a contractor, why it's important to see it from the customer's point of view, and share some frameworks for thinking about first impressions — all before you ever talk to the customer.

[01:12] One thing before we dig in: later in the season, we get into how AI plays into fixing the exact problems we're talking about today. Today we're just laying some fundamentals, so stick with us — later in the season you'll hear more specifics. So guys, if you're ready to jump in, let's get after it.

[01:34] Imagine you talked to a hundred-plus homeowners who wanted a remodel or a new roof, right? What do you guys think their top concerns were when it comes to "Who do I hire?" with all these choices? How do we organize that into a few buckets?

One of those would be, of course, trust, right? Can you trust a contractor? What are some other things, Booker, Kevin, that you think are most important from the homeowner's point of view?

[02:23] Booker: Sure. Well, I'd say probably quality. You want to be able to trust them, but you also want that quality work. Are they going to get the job done right? So yeah, I'd definitely say quality would be up there.

[02:36] Matt: Right. Kevin?

[02:39] Kevin: Yeah, those are two really great buckets to start with — trust and quality. And I think a big factor that potential customers come to first — they already have it on their mind — is budget, right? How much is this thing going to cost me? Can I afford this? Are they going to stay consistent with the budget they gave me at the beginning by the end of the project? That's always going to be an underlying theme that overlaps everything — that budget question.

[03:09] Matt: Right, absolutely. So trust, quality and budget. This is what I refer to as our TQB framework. And technically there's a fourth one that comes in a little later, and that's timeline. So trust, quality, budget, and then timeline.

[03:29] Ultimately, the way this works is most homeowners have dozens and dozens of choices when it comes to a roofer, a fencing contractor, a gutter company, a remodeling company. So the question is, how do you stand out in that process?

I've personally talked to so many remodelers, and they're good at what they do, but it's kind of meat-and-potatoes — non-emotional, get to the point, let me do my work. They don't really think about what the customer is seeing from them when they're interacting with customers.

[04:13] For example, I talked to a remodeling company that was fairly new — six months to a year. They'd been doing the work for years, but they'd just set up their own official company, not just a freelance gig. And one of the mistakes he told me about goes back to trust. The first thing they do when they're remodeling a kitchen or bathroom is demo it, right? And I said, "Well, did you already order the cabinets?" He goes, "Matt, that's actually the problem. The cabinets they wanted ended up being backordered."

So there's this huge flaw in how they approached it. Think about it: you have a kitchen remodel, you're replacing the cabinets, and the first thing you do is demo them. You don't even order them or wait for them to arrive. You take their current kitchen offline. He's like, "Yeah, they weren't really happy with us, because they had to do their dishes in their bathtub for almost six weeks."

[05:19] So obviously that hits a little bit of the trust and a little bit of the quality. It's not just the quality of materials — it's also the quality of the experience, right? So let's talk about that a little more. From the homeowner's point of view, why does quality matter?

[05:46] Booker: Well, quality really leads into that trust, right? Like you said, it's not just about the actual materials. To me, it's about the quality of the conversations. You have to be able to communicate really well with your client and let them know these things ahead of time. If something's on backorder, make sure that's communicated — and get to that before you do the demo, obviously. It all builds into the quality of the company you're working with.

[06:20] Yeah, I feel like taking the kitchen offline before everything came in was kind of an amateur mistake.

[06:25] Matt: For sure. The way he said it, it's not that he did it himself so much as his guys went ahead and did it without him. There was some miscommunication. But obviously it impacts his overall company.

[06:37] Booker: Right. If you have subs working for you and they go off plan, it still makes your company look bad.

[06:44] Matt: Yeah. What about budget, Kevin?

[06:49] Kevin: Yeah. When we talk about budget and cost — you mentioned an interesting scenario where they were having to do dishes out of their bathtub. That doesn't sound like fun.

[07:01] Matt: No, it doesn't sound like fun.

[07:02] Kevin: It's also the cost of time — how they have to rearrange their lives. And then you have budget creep, like you talked about with the backorder. There are things you can't always control when you go into a build, and you want to make sure you give as close to a realistic estimate as possible.

But one thing to consider: you're the expert contractor. You do this every single day. You've talked to the hundred homeowners. This is the first time they're going through this. Sometimes they don't even know the questions they need to be asking. So if you can get ahead of that — talk about why the budget is the budget, what hidden costs come into play — anytime you can address that upfront, you're going to really increase that customer's comfort level and start setting yourself apart from everyone else.

[07:58] Budget creep happens, or you've got a client who just wants to keep adding stuff. It's like, "Hey, this is what we originally talked about, right? There's going to be a cost to this." But you can own the communication. You can be very clear even when things don't go as planned — but you set that from day one. You set the tone, you set the communication. Address the hidden costs, and help them know realistically what to expect from working with you.

[08:27] Matt: Right. And actually, I had a conversation with a remodeler maybe two weeks ago. He's in the Fort Myers, Cape Coral, Southwest Florida area, and he came from New York. He said one of the strategies he's seen — the same one they use in New York — is, "We're going to give you a lowball price on purpose. You choose us, and then we nickel-and-dime you for everything else." And that nickel-and-dime piece comes after you've already signed a contract.

That's the flaky part that gives contractors a bad reputation. We've all met plenty of contractors who have that reputation of being a little slimy — socially, maybe below a used car salesman, right?

[09:18] A lot of that is people just don't think about this stuff. They think, "Here's what you want, here's what it costs, let's go." But from the homeowner's point of view, like you said, this might be their very first remodel project. A lot of these guys are going into 20- or 30-year-old homes — you've still got the shag carpet and the super outdated stuff — and now it's time to remodel, and people haven't gone through this process before.

[09:41] So just to recap — trust, quality, budget. Trust: obviously, if someone's going to be in your home for days and weeks, you have to trust them. You're not keeping an eye on them. Jewelry, valuables — those aren't things the average contractor really thinks about, but as a homeowner it's very important. So make sure you're not ghosting them, and you're keeping the lines of communication open.

And then quality. Booker, final thoughts on quality?

[10:13] Booker: Yeah. The big one is: can they do the work well, and do they communicate well? Is the finished work actually going to match what was sold? I really think that encompasses a lot more than just the quality of the materials they use.

[10:36] Matt: Right. I feel like the materials you order are pretty easy, because they're pretty standardized — certain brands, you know they're going to be good. But assembling them, putting them together, making sure it's level — are you skimping on a few things to make yourself a few extra dollars that cause the homeowner headaches years and years later? Right?

[10:56] Booker: Yeah.

[10:57] Matt: And then budget — final thoughts?

[11:00] Kevin: Yeah, they're asking, "Can I afford this? Is this really the cost they're showing me up front?" And if you vary wildly from other bids — why is that? What makes you different? Do I even believe this bidder is better than that other contractor? It all ties back into trust, right? Do I trust this bid? Do I trust that this is going to be a budget I can actually afford?

[11:38] Matt: Right, exactly. And all of those are really important. I'd be willing to bet most remodelers, roofers and contractors have not stopped to think about the homeowner's perspective on all this.

Now, obviously when they're the homeowner and they're ordering something they don't do themselves — say, gutters — and they have to personally write the check, it's totally different. Being on the buying side of a service versus the selling side is a totally different experience.

So trust, quality and budget should trickle through everything you do: that very first conversation, the website, the in-person conversations, any texts and emails over the life of the project, and even after the project is over. You should consider all of these factors.

[12:39] Now, just as an off-topic example for one second — this is one of those case studies I remember reading about. If you're hiring a mover, guys, what's the most important thing people look for?

[13:05] Booker: I'd say reviews. Definitely looking at reviews, past work, past experiences.

[13:12] Kevin: I'd probably say the same. I think: don't break my stuff.

[13:20] Matt: I think you hit it. You hit it, right? "Don't break my stuff." So if you went and looked at moving websites, how many of them address that "Are you going to break my stuff?" concern? Probably zero — or let's say 1%, right? A very, very small percentage.

What we're saying is the same thing applies here: What's important to them, and are you communicating that clearly? Because what you're trying to do is match the language of what the customer is looking for with what you provide. "Don't break my stuff" really means "Can I trust you?"

[13:54] We have a couple more guests coming on in a few weeks — luxury home builders who work with homeowners and have won awards — and over the next many episodes we're going to talk about trust, quality and budget from different angles, including using something like "award-winning builder" as a way to build trust. Because as you all know, there are dozens and dozens of remodelers and roofers available to a customer. You can literally find options in three seconds on Google Maps — "remodeler near me," "roofer near me," right? So we'll dive into more of that in future episodes.

[14:46] So let's talk about that first impression, because most of the time it happens without you, right? It's the very first touch on your website. It's how quickly you answered the phone, or if they left a message, how quickly you called them back. That first impression happens without the contractor. It starts way before you provide a price, and way before you pitch your offer, your design or your concept.

[15:27] What I've typically seen is that where you show up online is obviously important — what your profiles say. Your Google Business Profile, what your reviews show. Most people are more likely to believe a 4.9 rating than all five stars. And I say that as a company that has all five stars — I wish we'd get a four-star review juremodelers, roofers and contractors tst to bring our average down a little, so it doesn't look like "they do amazing jobs, they never do a bad job, everyone loves them." We're human. We make mistakes. Sometimes we misunderstand what clients need or ask for, right?

[16:06] But that first impression happens without them. So one of the things that's super important — and we'll talk more about this in future episodes — is showing and demonstrating on your website that they can trust you, that you're going to deliver quality, and that you're going to stay on budget. You're not going to nickel-and-dime them for every little thing.

Now, of course, there are exceptions. If you tear out a wall and there are termites — there's always something lurking somewhere, especially in older properties, right?

[16:44] But let's shift a little more to the website and that first impression. Maybe someone got a remodeler's name and they're looking at their website to see what kind of work they can do. Booker, what are some ways to build trust and show your quality on the website?

[17:07] Booker: Well, when it comes to something like this, we're very visual, right? We want to see what's been done. So some kind of showcase on the website — and also on the Google Business Profile. People want to see real project galleries. They want to see past work — enough to get a feel for your style and see a pattern. Not just one project, but a handful. That's a really big part of it. That's the proof. They want to see that you've done it. You can say it, but you need to show it.

[17:48] Matt: Right. So showcase your work — and I'd extend that a little further: showcase the kind of work you want more of. If you used to do lots of decks and you don't want to build decks anymore — you just want to do more remodels — then don't showcase so many decks, right?

[18:05] Booker: Right.

[18:06] Matt: We've had lots of clients who had a pretty good line of business and are now pivoting to something slightly different than what they've done in the past. You have to showcase the kind of work you need.

I actually saw this maybe four weeks ago. I went to a remodeler's website, and their photos looked like 1987. Very, very dated. I'm talking about showers — you guys remember those old glass-block showers that were popular in the '90s? And I'm like, "You're showcasing that as your work?" And then, "Hey, we hung this picture and made it level," and "We fixed this deck railing." You're going to attract more of those kinds of projects if that's what you're showcasing. You need to show the full kitchen — what you want to see more of, right?

[19:06] And obviously doing quality work is important. But Kevin, what are some other thoughts on doing good work?

[19:15] Kevin: Well, being the best builder in your town — that's not enough. You can be a master builder with immaculate work, but if no one knows about it, it doesn't matter. It's almost like you don't exist. You have to be the best-known contractor — the best known for what you do. That's why you talked about your presence and demonstrating the work you've done.

[19:44] Booker: Well, that reminds me — I know we were looking at a website earlier this year, and they were showcasing works in progress. It's like, don't show us the broken-down stuff that's still being built. Show the completed work. The in-progress stuff can go on social media. Don't put it on your website.

[20:08] Kevin: Right. But then you have to make sure people know how to find you, and there are different ways to do that. Don't just be the best — get credit for your work. Get a receipt for the good work you're doing. Tell the stories behind the build. Make it come to life for the audience. You have to be the best known.

[20:31] Matt: Right. I used to refer to this as being "five-mile famous" or "10-mile famous." You need to be really, really well known in your local area. And that doesn't happen overnight. It takes a lot of work. If you're just thinking job to job to job, you're never stopping to think about working on the business versus working in the business.

As you probably know, there's a well-known book called The E-Myth. It's a pretty quick read, but the idea is working on building your business, not just working in the day-to-day — thinking strategically versus "here's what I've got to get done today for the clients." It's a different approach.

[21:13] But yeah, absolutely. And as we shift from being well-known and doing quality work — Kevin, what are some other questions that come up from homeowners related to budget or cost?

[21:30] Kevin: Yeah, I think this is where you really lean into being the expert. We talked earlier about how you might have gone through this a hundred times, but for the customer, this might be the first time. Don't make them guess what it costs. Make it understood and visible. On one level, how you communicate with the customer is a taste of what it's like to be your customer. They really value your communication.

So when you're upfront and answering the details about the budget, they go from "Man, I have no idea if I can afford this — I really like it" to "Oh, this might be the right fit." When you answer those questions, it flips a switch in the customer's mind: "Okay, this might actually be something I can afford, in my price range."

[22:21] It helps the right customers raise their hands, and it saves time with the wrong fit. You have customers who are going to nickel-and-dime you and see what they can get. But if you're very clear and transparent about your price range, you eliminate the time-wasters — the tire-kickers who will never commit — and you attract more of the customers you actually want to work with.

[22:51] Matt: Right, right. And something that came up a couple of weeks ago — I was talking to a remodeling company, and he said they offer financing. I asked, "Do you offer it directly?" He said, "No, we have some lending partners — some financing options we put in front of our homeowner customers." And he said, "Matt, they actually give me a kickback." Well — technically a referral bonus, I guess, is the right phrase.

And he said not only do customers tend to spend more with them when it's financed — "Oh yeah, let's get the upgraded quartz countertops, let's do the slightly better finishes" — but it makes the whole process flow. "I get a check from the financing company, they make their payments to the financing company, and I get a bonus too."

[23:57] I said, "You know what would be really cool? If you blended that into your screening calls when they first call in." He said, "What do you mean?" I said, "Ask the question without asking the question." Because no remodeler or roofer is going to say, "Are you paying cash or financing this?" That's not a very tactful way to ask. But a different question could be, "Hey, we have some financing options. Would you like me to bring some of those with me? Are you interested in something like that?" So you're finding out whether they're paying cash or financing without actually asking.

[24:36] That's super important to know, because most people are a little more price-sensitive if they're paying cash versus putting it on a credit card. It all depends on the price range. The average remodel in the U.S. is somewhere between 35 and 75K, and obviously not everyone has a 75K credit limit. But at the end of the day, it's super helpful to have a financing partner, so people don't have to wonder, "How am I going to pay for this? Now I have to start saving for six months to pay for what you just quoted me." It's a smoother way — kind of a win-win, right?

[25:20] So let's talk about standing behind your work, and that quality aspect again.

[25:31] Booker: Yeah, people definitely want to know you're going to stand behind your work. Part of that is having a clear labor warranty that tells the homeowner you're not going to disappear when the job is done — or disappear when the job is halfway done. A lot of guys come out on a Monday, say they'll be back Tuesday, and you don't see them for a month. You don't want that to happen, and you don't want people to think it's going to happen.

So you have to be clear about expectations and let them know you're going to do what you say, you're going to stand behind your work, and if something goes wrong, you're going to make it right. That's where they decide whether you're on their team or not. Is it us versus them, or are you part of the team trying to get this across the finish line?

[26:24] Matt: Yeah. I can actually speak to this personally. A few years ago during COVID, I was renovating a house in Louisville, and I needed an electrician really badly. I called a bunch of companies, and a whole bunch of flaky guys came out and told me a bunch of nonsense — "Matt, code requires a switch here but not there." Super flaky guys, reeked of cigarette smoke — and I have a smoke allergy, so I couldn't even stand to be around them.

So I found a company. They said, "Matt, I'll have someone there tomorrow." I'm like, "Oh, great, all my problems are solved." They literally showed up one day, and then I didn't see them for six weeks. I said, "Hey guys, can you please finish? I can't get my drywall done, I can't do the painting, the flooring…"

[27:13] There's this very common flaky strategy contractors use that's a huge turnoff to homeowners: start a project, collect the deposit, then start shopping for more projects and get more work lined up before coming back. And you're left thinking, "My kitchen's been half offline for six weeks while you're finding more work. Why don't you just finish my project?"

I experienced this firsthand with an electrician in Louisville. I won't mention their name, but I never used them again. They did great work, but that disappearing act added six extra weeks to my entire project — the holding costs, all of that.

[28:01] So when it comes to your reputation and how you're positioned, I'd love for guests who come on our show in the future to say, "I'm the only remodeler who ___." We've had builders we work with who say, "I'm the only builder in Dallas, Texas, who builds for professional athletes" — maybe 30,000-square-foot homes, right? That makes you stand out to homeowners and sets you apart.

Because again, at the end of the day — and we'll talk more about this in a future episode — that first impression is super important. People have so many choices, and they're going to whittle them down really, really quickly. "I've got 30 choices. I need to whittle it down to five." So if your website looks terrible, if you can't call people back, if you're kind of flaky on the phone — next.

[29:02] I just want to make sure contractors understand how fragile those very first few interactions with a homeowner are, and how important it is that you set a good expectation and deliver on their needs. Obviously, lots of homeowners want more than they can afford, and it's up to you to qualify and filter those out before you spend 45 minutes driving out to meet them. If they want a $70,000 kitchen for $10,000 — well below even material costs — it's up to you how to handle that.

[29:39] So let's talk about four things to remember. One: the homeowner is going to decide before you call. Trust, quality, budget — are you going to answer them, are you going to get back to them — all of that happens online before your phone ever rings. They're going to vet you and decide, "Are you on the shortlist, or am I going to discard you?" And you want to be on that shortlist, first and foremost. What else?

[30:08] Booker: I'd say show, don't tell. Real project galleries, real reviews — galleries of the jobs you want to attract more of. Like Matt mentioned earlier, don't show deck building if you're looking for bathroom remodels. Stay focused on building galleries of the work you want more of.

[30:38] Kevin: Yeah. Don't be the best-kept secret, right? Best known beats best builder. Don't be the hidden secret in your town. Being the best builder in town only pays when people can actually find you. So pay attention to your socials, your Google Business Profile, your website. All of that matters to a customer. Like you said, before they ever pick up the phone, they're deciding — so make it easy for them to decide.

And part of making it easy: say the number early. Go to the budget conversation. Don't be afraid to go there in advance with customers. Give price ranges, clear change orders and a clearly written warranty. Help them know what to expect in advance. Build that trust, so they know they can really rely on you and the answers you're giving them.

[31:38] Matt: Right, awesome. And then of course, the timeline: have a realistic timeline. Don't tell them four weeks if you really think it might be six, right? You could say, "Four weeks, with potentially two more depending on the backorder situation with the specific cabinets you picked out."

So thanks for hanging out with us, guys, and thanks for listening. Don't forget to like this episode and subscribe for more, and we'll see you in our next episode. Thanks.