How to series: Setting up a Woodworking Business #6: Dealing with Customers.

in #woodworking6 years ago (edited)

Welcome back Fellow Woodworkers and Woodworking enthusiasts,
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Just to re cap;

I have been writing a series of posts on the practical side of setting up shop.

This can apply to a hobby workshop but is mainly aimed at anyone who would like to set up a full time or part time business.

It is a big subject so I doing my best to divide it up into the following sections.

Workshop.
Tools and Machinery.
Finding a good timber yard.
Deciding what type of woodwork you are going to do.
Advertising and getting Customers.
Dealing with Customers.
Expanding your business.
Is Self employment for you?

I will add to this list and I would appreciate any suggestions.

I have experience in doing this myself from being self employed for 18 years.

You can find the first parts here;

Part 1: Workshop
Part 2: Tools and machinery
Part 3: Finding a good timber yard
Part 4: Deciding what type of woodwork you are going to do.
Part 5: Advertising and getting customers
 
 
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Today's post is,

#6: Dealing with Customers.

This is a whole new subject that you need to learn if you are going to be successful in any business.

You will need to read books, gain experience in the real world and learn many tough lessons.

There is no way around this but I will do my best to make the 'rite of passage' a little less rough...

Some of my advice my seem obvious but it is worth saying, sometimes the smallest overlooked detail can cause the biggest problems.
 
 
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Initial contact.

So you have started your business.

You have implemented some of the suggestions I have made in the previous posts and are now well on your way.

Your tools, workshop, designs, target market, and advertising routes are clear in your mind.

Everything is set and you are ready for anything.

The phone rings and you answer courteously ( even though you half expect a joke call from a friend)

It is a Mrs.Jones and she abruptly asks if you are the Carpenter/joiner/cabinetmaker/wood artist etc.

'Yes it is' you reply proudly...........pause.

She says she got your card somewhere and would like some shelves making.

Great you think and you arrange to make a visit to take measurements.

Here are some possible scenarios.

You set off and get to the village/ town /city and realise you cannot find the house. You left 15 minutes early to accommodate delays but you are hopelessly lost. Arriving late you apologise and enter the house. Not good

You make the 25 mile journey and when you arrive she is not in, so you wait patiently for half an hour and then realise you only have her home phone number. You can actually hear yourself ringing! Not good

When you get there she has the shelving from Ikea ready and expects you to put it up there and then. Off course you only have a tape measure and note pad. Not good

My point here is that you need to clearly identify what the job is and prepare correctly.

Always ask for a contact number and ideally you want a land line and mobile.

Get the full address and make notes of any special details the client gives.

Get as much detail as possible about the job in question, this will give you a chance to do some research beforehand.

Your first meeting may be face to face at a craft show but the fundamentals still apply.

When you do go to look at the job you should be well presented, polite and on time.

Being too early can be just as bad as too late so I generally aim to arrive a few minutes early, even if this means waiting on the side of the road.
 
 
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Finding out what the client needs.

This is your main objective.

Believe me, in some cases clients will say they want one thing but will be unhappy when they get it.

Listen to what they say very closely and make plenty of suggestions where suitable.

The client wants your guidance generally and will be very receptive.

This can save many hours on wasted designs

If you are dealing with a couple , listen to both of them. Chances are they will have totally contrasting ideas on what is required.
( As a side note, Do not get caught up in bickering or domestic arguments. I have been put in very awkward positions where a husband will belittle the wife or vice versa. Just remain diplomatic and neutral or call the police! Whatever you deem appropriate.)

Ask if they have any pictures of similar items they like, this can be very useful.

You will probably be asked for a ballpark figure, unless it is a very straight forward job , avoid this at all costs. Politely state that you will need to work it out properly and you would not want to give them a guessed price.

You will have to get used to being put on the spot like this so best not to under price under pressure.

Take initial measurements with the client there so that you can again establish what they have in mind.

A very good tip is to listen to the descriptive words the client uses.

Everyone thinks in one of, or a mixture of, three ways:
Audio.
Visual.
Kinaesthetic.

If someone is visual they will say things like ' I would like to see...'.Or ' In my minds eye'.

If they are audio they will say things like' That sounds good' Or ' I hear what you are saying'.

For kinaesthetic people they will say something like ' I feel it should be...Or ' It just doesn't feel right'.

Use speech that matches theirs, this is not to be manipulative but to be on the same wave length and to speak in their language.

 
 
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The Design process.

You have now gathered enough information to produce a design.

I like to design at least two options, especially if it is a new client and I always say 'this is just a starting point and we can adjust as needs be'. (Just in case I have got it totally wrong this gives me a chance to redeem myself.)

I generally do the design for free. This can be a lot of work especially if you don't get the job but I'm afraid you are competing with big businesses that will produce 3D computer images and quotes for free.

It is a little unfair to charge for a design that someone may not want or is too expensive to make.

The problem is you cannot quote for the job until you have designed it anyway.

The only time I charge for designing is when the job is designing something.

How you produce the design is up to you.

3D programs are very effective. I would at the very least produce a scale drawing.

Hand drawn designs add a personal touch and can be done with a pencil and paper.

When I first started out, in an effort to stand out, I would produce scaled illustrations with water colours and fine tip pens. These were very time consuming but were treasured by the client.
 
 
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Pricing.

This is one of the most important aspects of business and one of the trickiest.

Firstly, when you have established a design, you need to cost all the materials.

Be thorough, it is easy to over look things when you start out and that can be an expensive mistake.

Make sure you add wastage on to your timber costs. It is highly unlikely that the timber yard will have the exact sizes you need so you will be left with offcuts.

Secondly you have to work out the time it will take to produce. Include buying materials and the design process in this stage. You also need to work out an hourly rate that you are happy with.
If you are just starting out be realistic with your hourly rate.

Thirdly you need to add a profit margin. This is so you can grow your business in the future and invest in better tools etc.

When you have those three figures you have your basic price.

Then you need to look at the total and ask yourself if it is reasonable for your market.

If you have priced up a coffee table at $12000 you had better be in a very high class market or you need to adjust your pricing strategy. The opposite may be clear that you have not charged enough.

People will have a price in mind and certain items have a psychological ceiling price.

This is one good reason to have two designs. You can have a higher and lower price option.
(Side note never say 'cheaper' to a client it implies inferiority, Instead use 'less expensive' It makes all the difference.)

It may be that you are taking too long too produce an item and you will need to find ways to increase efficiency. This is one of my favourite parts of the job, working out the processes and where needed investing in the correct tool or machine.

You will have some jobs where you overpriced and got it, they are fantastic buy few and far between.

In the early days you will probably under price out of fear of not getting the job.

Their is even more pressure if you have mouths to feed. Working through the night to meet a deadline on a job that is costing you money to make is a possibility. Just do it and chalk it up to experience. If you are really stuck you can appeal to the clients better nature and explain you under priced, They may be sympathetic.

I did not say being self employed was easy.

Experience will soon teach you better than anything else.

When you have your figures you need to produce a quote.

This can be a simple word document but it must be detailed.

I would always include a description of the commission listing materials to be used, any hardware, colours, finishes and sizes.

The price must be clear and any additional costs should be stated i.e installation costs by the hour for example.

Make copies of the drawings and quotation for yourself and the client.
 
 
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Working Relationships.

When you take on a commission you will be interacting with that client on many occasions.

Remaining professional is a must, it is easy to get complacent and pally. Having a joke and a laugh is all well and good but just watch how quickly the clients attitude towards you can change if there is a problem.

Always be polite but do not allow the client to take advantage of you, you will just set a bad president.

I have found a good way to maintain a professional 'distance' is too always use my full name when calling a client by phone, rather than just my first name.

First name terms are fine in person but this small detail just politely and subtley lets people know where they stand.

As with any area of life if you keep your word and conduct yourself properly you will not go far wrong.

A word of caution, you are giving a client a small part of your life by agreeing to do a commission for them. They will have a certain influence and could make your life a nightmare. Apart from not paying on time or at all they could take out any personal problems on you.

A perfect example of this is a fitted kitchen. People are emotional creatures and a kitchen becomes a life dream or aspiration. That is one reason they are so expensive, the value is in the lifestyle it offers not the materials or labour to make it. Get it wrong or miscommunicate and you are trampling on their dreams. At the end of the day it is just a kitchen but they will not see it that way.

Or maybe they are having a bad day or time in their life. Not your fault or problem but they could become very difficult to deal with because of this.

The worry of not getting paid or dreading working for a client is not fun and only adds to the pressure of being self employed.

Be very wary of you let in to your life. If you get a strong sense that you do not want to do business with someone just save yourself the hassle, make your apologies ( too busy right now or not quite my area of expertise.) and move on.

On the other hand a great customer can make it all the extra hard work worthwhile.
 
 
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Complaints.

You will inevitably come up against a complaint or dissatisfaction at some point.

Deal with it immediately and directly.

If left the thing in question can grow in the mind of the client and leave them quite angry.

There is I no point getting into an argument with them as that will make the situation worse. Just hear what they have to say, remain calm and stay professional.

If they are shouting or ranting either tell them you will talk to them when they have calmed down or let them get it out of their system and then speak.

A good counter measure here, rather than offering explanations or excuses, is to calmly ask what they would like you to do. The client will normally calm down immediately when hearing this and you will be in a much better position to negotiate and resolve the issue.

If all else fails and you cannot reason with the client you can always walk away from the job and agree to disagree. Life is too short and sometimes this may be the only answer.

Dust yourself off and put it down to experience.
 
 
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Getting Paid.

Obtaining payment is sometimes easier said than done. A person would always pay for something in a shop immediately but will take weeks to pay an invoice.

Unless you have agreed in advance longer payment terms, anything other than instant payment the day the commission is finished is not acceptable.

Providing the job has been completed to the required standard you should expect to be paid there and then.

Here are a few tips;

Always, always, always get a deposit to cover the materials. You are not a bank and you do not offer loans so use the clients capital to buy what is needed. A 30% deposit is reasonable in normal circumstances but if more is required ask for it or get the client to pay for them directly.

On your quotation state the overall cost, the deposit due before work commences and the balance due on delivery/installation.

Be realistic with timeframes and deadlines and never sign any penalty clauses. Being late can cause all sorts of trouble and could end up with you paying the client!

If you are emailing the invoice also send a text message to say you have sent the email. This avoids the possibility of the email not arriving or the client saying it never arrived.

Take photographs of the work you have done, this proves you have done the job if there is a dispute and you need pictures for your portfolio.

Ringing a client and asking where your payment is can be awkward and is best avoided, but if you need to it must be done. Be polite but firm.

I have heard every excuse under the sun in the past. When I first started out I made a lot of furniture for a young couple. I would arrange a time to deliver and install the item and they would always leave me a key saying they would be back at whatever time. They never turned up on time and would make endless excuses the next day. ( this was before I had a mobile) On the last job I did for them I was not budging and waited hours (5) outside the house until they eventually turned up. I had bills to pay and so did they.....Mine!

 
 
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Conclusion.

Running any business can be daunting and you will have to harden up pretty quickly. Your confidence will soon improve with practice.

The clearer you communicate with the client the better.

 
 
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If you have any questions about woodwork, furniture or being self employed as a craftsperson let me know.

I know my wood and I have spent years teaching myself furniture making , furniture history as well as living it as a self employed cabinet maker .

Still I am learning every day and the journey is the point.

We have started a woodworking community here on steemit and would welcome you. We have a discord channel, link here: Woodworking on Steem Discord Channel And a weekly woodworking post competition ,
you can read the post here

Many thanks for reading,
Until next time,

@jist

Picture from www.flickr.com

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Dealing is the most important

Absolutely. Thanks

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I have been "dealing" with customers for a very long time in one way or another and it is something new every day. This post is a very good guideline and should be a must read but we all know that one customer that doesn't fit any profile whether positive or negative....

Too true and all the experience in the world cannot prepare you for some customers. Thanks

Glad to see you continuing the series. Jam packed with great advise.

Thanks Man. It was a long one and barely scratched the surface.

Excellent series @jist, I am getting closer to taking out on my own, and this has been very helpful in the thought process. Thank you.

Thank you and I am glad it has helped. Give me a shout if you have any questions.

This post has been resteemed by @woodworkcurators

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