Wednesday, December 11, 2013

Customers aren’t paying you to work hard, they are paying to to add value and drive results

My husband and I hired a contractor about 18 months ago to install new siding and a new roof on our home. I wanted the siding done because I hated the original color, and I wanted something that looked more like shingles. So, the work was a “want,” not a “need.” The roof wasn’t urgent - it wasn't leaking, we didn’t have any issues with it, but we knew we only had a year or two left on it. So we decided to do it all at once.

We interviewed 3-4 contractors, checked references, and even did drive-bys on past work before we hired anyone. We felt we had done our homework and made a good choice.

Before the work was done, our new roof starting leaking into the bathroom. Every major rainstorm resulted in water in my linen closet. This problem was never solved by the contractor. About 2-3 months after the project was completed (less the leak in the bathroom that was still unresolved), a new leak formed in the den. This was a tough one since the den is on the first floor..there is another floor above it. My husband and I, not the contractor, identified the problem, but he did fix it.

Then about 18 months after the work was done (again, the leak in the bathroom still persisted), another, third leak formed in the kitchen. Again, my husband and I did some digging, pulling down sheet rock in the upstairs closet to expose the underside of the roof, and found the leak.

At this point we had had enough! We called the contractor and asked him to come out to the house, which he did. He was rightfully frustrated, but he wanted to get on the roof to take a look. We had other plans. We were fed up and concerned that there was a real possibility that there were all kinds of smaller leaks that had made it through the new roof that we had not seen yet. We were afraid that hiring this guy had increased our risk for things like mold and rot that would cost us thousands of dollars down the road. We simply wanted him to pay us our money back and let us hire a roofer to put on a new roof.

Strangely enough, he agreed to do so on the spot...no arguments. We were surprised but happy. There was a hitch, though...he didn't have the money. He had to pay us in installments. Knowing you can’t get blood from a stone, we agreed, but I was afraid that we could not start the work on the new roof until we had all the money, not because we needed the money, but because he would pull a fast one and stop paying us saying we violated the warranty or something once the new contractor started his work. So I called our attorney. On her advise, I wrote up a letter that spelled out the agreement. The letter would be signed by both parties and be certified by a Notary. The contractor agreed to go forward with the letter.

In the meantime, my husband was collecting bids from other contractors. Each stated that to do the work, part of the new siding had to come down. Fine...no problem, except that the siding is under warranty by the original contractor. The new contractors with whom we were talking are not siding guys, and I did not want to give the original guy any reason to not honor our warranty on the siding. So, I added a clause to the letter stipulating that the original contractor had to remove the siding temporarily and put it back up properly before and after the new roofer did his work.

Well, this new clause put the original guy over the edge. We met at the Notary to sign the letter, and I explained the new information I had and why I changed the letter. I asked him to read it before signing so that we could discuss any questions he had before we both signed. He reviewed the letter, but I’d be stretching the truth if I said we “discussed” anything. Instead, we stood on the sidewalk outside the Notary’s office making our cases “with raised voices” as to why the letter should or should not be signed as is. Ultimately, the letter did get signed just as I wrote it. What pushed this guy to my side, you ask? Easy, his closing argument for not signing went something like this:

“Andrea, do you not understand how hard my team and I worked. We are giving you back $6500 of hard earned money, and you want me to come back and help the other contractor do his job. He should hire someone to deal with the siding. We worked really hard.” said the contractor. (I’ll call him Joe.)

To which, I said, “Joe, first of all, if the other contractor hires a siding guy to handle it, that cost will get passed on to me. We are only in this situation because of the work you and your guys did. I understand you and your guys all 'worked hard,' but my husband and I did not pay you to work hard. We paid you to put on a roof that does not leak, and that did not happen. This is not about how hard you worked. Its about whether we got what we paid for, and we didn't.”

“Joe” looked stunned, frankly, but he quickly changed gears and agreed to sign. (We have a new, non-leaky roof, including in the bathroom issue, and we have received all of our money back from the first guy.)

I didn't share that story with you for therapeutic reasons, although that did feel very good. Thanks!! Rather, I share it with you because it is an appropriate story for any service provider, including consultants, to keep in mind. Our customers do not hire us to work hard. They hire us to make something happen, get something done, and, generally, add value. If you can work less hard and still meet their value needs, they see that as a win. Assuming a time and materials relationship, they get the value faster and at a lower cost.

As you work with your clients, it is important that you first understand what “value” means to the customer. This can be expressed as “success criteria” or “goals” as well. Then, you have to work with your client to define a plan to achieve those goals and deliver that value. Let’s face it, some of your ability to deliver is dependent on them, so they need to be part of the plan. Then, you need to work tirelessly to ensure that you are delivering that value...assuming it is in scope, of course.

Don’t fall in love with your ideas, don’t mistake hard work for value, and be sure wrap up every day knowing what value you added to your clients, to your firm, and to yourself.

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