A top worry for many remodeling owners is staying on budget during a project. According to Michael Stone of Markup and Profit, budget is less of a major issue if it is handled properly during the sales call with clients. Stone highlights four basic questions that need to be asked and answered on the sales call: What do you want to do? When do you want to do it? Who will make the buying decision? What is your budget for this job? Stone says it is important to clearly explain that the design and selections made by clients will dictate the cost of the project.
The designer shouldn’t have to worry about designing within the budget, because the design is considered when the budget is set.
Once you know the budget and it fits the job, start talking about a design agreement. If their budget doesn’t fit the job, let them know right away. Be direct but say it kindly because you don’t want to shut the sales door. You can suggest a second meeting so you can return in two or three days with a proposal that better meets their budget range.
When the budget is set, it fits their vision, and you have a design agreement, you need to do one more thing to keep the budget and the design together. You must explain to your clients that if they make a change to the job, whether it’s a large change or a small change, it doesn’t matter, the price of the job will change as well. This stage in the process is when the “I want, I want” stuff begins, and if you don’t keep reminding them that changes to the design will change the budget, you’ll have problems.
During the design phase, if you are having a problem keeping within the budget, either your budget ranges were wrong, or they changed the design. If your budget ranges were too low and you underestimated the cost of their design, you need to go back, hat in hand, and explain it. If they changed the design, it’s on them. They’ll need to adjust their budget or go back to the original design.
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