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Tailor your sales for homeowners who don't have a budget

How to Sell to Homeowners Who Don’t Have a Budget

March 15, 2024

In a Homeowner Sentiment Report released by Modernize Home Services last summer, 83% of the homeowners surveyed did not have a project budget. Of those who did, many weren’t sure about it.

As a contractor, you can tailor your marketing and selling approach to help homeowners who haven’t prepared a budget. This can encourage them to start their projects.

Here’s a quick guide:

Qualify the Homeowners
First, understand your potential customers. Ask about their goals, knowledge of the industry, and if they’re willing to pay for quality services. Knowing what they know helps you fill in the blanks.

Don’t Start with Cost
Initially, avoid talking about the price. Focus on the project’s size, scope, and the homeowner’s preferences. You can mention design features at different prices, showing them there are options for every budget.

Discuss Budget Later
Once you’ve built a good connection, then you can talk about costs and their budget.

Build Value
Don’t try to be the cheapest option. Many homeowners care more about the quality of workmanship and your company than just price. Show the long-term benefits of your services. Use testimonials and before/after photos to demonstrate your project’s value.

Guide Them on the Budget
After qualifying the homeowner and showing the value of your services, explain the budget details. As an expert, confidently share information about costs and options. If they’re unsure about prices, be ready with cost-saving alternatives.

Clear Contract Terms
Make sure the contract is easy to understand. Clear terms prevent misunderstandings about the work scope, cost, and your services.

Build Confidence with Uncertain Homeowners
Many homeowners are hesitant about spending a lot on home improvement. If they’re unsure about the budget, build trust by creating a strong relationship. Start by discussing their project goals, then highlight the value of your services and break down the costs. Clear communication is crucial for a good relationship with potential customers.


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