How to Deal With Clients’ Top 4 Budgeting Challenges
Why do homeowners find their renovation budgets creeping up and how can pros help?
For many homeowners, managing a renovation budget can be tricky, which is why the experience of a professional is invaluable. Houzz users who took part in 2022’s Houzz & Home Study revealed the things that caused costs to rise when updating their properties. Read on to find out how to guide your clients through a project and make it as budget-friendly as possible.
Budget-breaker No 2: The project was more complex than anticipated
Without a background in design, it’s hard for many clients to imagine the complexities of a project. Of those respondents who went over their renovation budget in 2021, 38% said the project was more complex than expected. Fortunately, technology allows professionals to help homeowners understand the real scope of a project.
Many renovation specialists find 3D tools a really effective way of enabling clients to visualise how a proposal will actually look. “It’s important to understand that many [homeowners] can’t fully understand plans, sections and elevations,” Angus Eitel of Fiftypointeight Architecture & Interiors says. “We frequently use 3D modelling software to provide 3D visuals and walk-throughs to help provide a greater understanding of the proposals.”
Find out more about the Houzz 3D Floor Planner tool.
Without a background in design, it’s hard for many clients to imagine the complexities of a project. Of those respondents who went over their renovation budget in 2021, 38% said the project was more complex than expected. Fortunately, technology allows professionals to help homeowners understand the real scope of a project.
Many renovation specialists find 3D tools a really effective way of enabling clients to visualise how a proposal will actually look. “It’s important to understand that many [homeowners] can’t fully understand plans, sections and elevations,” Angus Eitel of Fiftypointeight Architecture & Interiors says. “We frequently use 3D modelling software to provide 3D visuals and walk-throughs to help provide a greater understanding of the proposals.”
Find out more about the Houzz 3D Floor Planner tool.
Budget-breaker No 3: Decided to buy more expensive products or materials
It’s easy for costs to rise when clients start shifting their expectations. They might begin with an initial budget, but then halfway through the project increase the scope of work or choose a more expensive material or product. Indeed, 37% of the renovators in our study who went over budget said they decided to splash out more on products or materials.
Cat Hoad says, “We try to avoid the costs of project creep coming as a surprise by ensuring each additional element is quoted for as it arises and that the client thinks about it in the context of the entire project.”
She’ll also look at different solutions at various budgets for each issue. “Ideally, the project has a contingency built in for exactly this sort of situation,” she says.
It’s easy for costs to rise when clients start shifting their expectations. They might begin with an initial budget, but then halfway through the project increase the scope of work or choose a more expensive material or product. Indeed, 37% of the renovators in our study who went over budget said they decided to splash out more on products or materials.
Cat Hoad says, “We try to avoid the costs of project creep coming as a surprise by ensuring each additional element is quoted for as it arises and that the client thinks about it in the context of the entire project.”
She’ll also look at different solutions at various budgets for each issue. “Ideally, the project has a contingency built in for exactly this sort of situation,” she says.
Budget-breaker No 4: Discovered unexpected construction-related issues
Unwanted surprises can cause delays and extra costs during a project. In the 2022 Houzz & Home survey, 32% of those who went over budget cited this as a reason. It’s difficult to avoid these unexpected issues altogether, but there are ways to make them less stressful for clients.
Anticipation is key, according to interior designer Claudia Dorsch, who holds regular meetings to discuss crucial milestones that need to be achieved. “We review those at the end of the week and specifically ask ourselves: what’s the worst case that could happen; what could go wrong, and where are the potential pitfalls on each project in terms of design or implementation?” she says.
“It’s human nature to avoid problems and there’s a tendency to avoid difficult topics until they start ‘burning’, so we practice forward-looking problem anticipation,” she says. In their morning meetings, Claudia and her design team discuss the week ahead and any crucial milestones that need to be achieved.
Also, be realistic about schedules and try not to overpromise. “I will always quote a longer lead time to a client,” Sarah Davies of Floella Interiors says, “as it’s better to deliver early than late.”
Tell us…
How do you deal with these common client challenges? Share your ideas in the Comments.
Unwanted surprises can cause delays and extra costs during a project. In the 2022 Houzz & Home survey, 32% of those who went over budget cited this as a reason. It’s difficult to avoid these unexpected issues altogether, but there are ways to make them less stressful for clients.
Anticipation is key, according to interior designer Claudia Dorsch, who holds regular meetings to discuss crucial milestones that need to be achieved. “We review those at the end of the week and specifically ask ourselves: what’s the worst case that could happen; what could go wrong, and where are the potential pitfalls on each project in terms of design or implementation?” she says.
“It’s human nature to avoid problems and there’s a tendency to avoid difficult topics until they start ‘burning’, so we practice forward-looking problem anticipation,” she says. In their morning meetings, Claudia and her design team discuss the week ahead and any crucial milestones that need to be achieved.
Also, be realistic about schedules and try not to overpromise. “I will always quote a longer lead time to a client,” Sarah Davies of Floella Interiors says, “as it’s better to deliver early than late.”
Tell us…
How do you deal with these common client challenges? Share your ideas in the Comments.
Of the renovators who said they went over their initial budget, more than half (53%) said it was due to the cost of products or services being more than they’d anticipated. Starting the conversation early is an effective way to mitigate these nasty surprises, according to Cat Hoad of Absolute Project Management.
“One of the first bits of paid work is to set up an outline budget,” she says. This includes headings for the approximate costs of different professionals involved and estimated costs for each part of the second fix.
“It’s a means for the client to see clearly how their money is likely to be spent, and it helps them to make decisions and prioritise accordingly,” she says.
Jessica Spencer of My Bespoke Room recommends giving the clients options on products to put the decision back in their hands. “We try to give them a choice of pieces for each element of the design at different price points,” she says. “This way, the client can choose themselves where to spend and where to save.”
An easy way for designers to share products with clients is by using the Houzz Pro Product Library tool. This handy piece of software allows you to save products from your favourite vendors to a product library on the app. You can then add these to a specification list, which your client can view and quickly approve or decline.