Vertical Excellence Yeilds Vertical Profits
Vertical Excellence Yields Vertical Profits
by Nathan Giffin
www.VerticalArtisans.com
To most of you who are aggressive in the work place and keep in
touch with the trends, there is no doubt that the latest buzz is vertical
decorative concrete. Over the last decade I have watched the evolution of
stamped concrete, acid staining, stenciled concrete and most recently
vertical stamped concrete. There are great artisans in each of these
fields but few who generate top dollar for their craft. Maybe the
majority of those individuals just don't perform in excellence, I can not
say. But when it comes to decorative vertical concrete I can give you
several perspectives on what it takes to be a success in the hand carved
vertical concrete arena.
Perceived Value is Value!
Do not approach your clients from a per square foot price. Why? Because what
in the market place will they compare you too? Cultured stone, cast stone,
stone veneer for example. These are all per square foot price structures
ranging from 12 - 50 dollars a square foot installed. If you allow your
self to be labeled in that range you have just established your cap.
Clients rarely start out by saying "I want to spend the most possible for
your products." That would be great but the truth is they will only part
with their money if they see you adding more value in what you are doing
than your competitor. Thus, you bring your client, by the hand, into the
world of faux reality. There are no limitations to what you can create.
Manufactured products are just not as diversified enough to cover the scope
of "all things are possible". When those products reach there limits we
are just getting started.
Faux Reality
Faux reality is an oxymoron but they are two words that bring loads of cash
to your bank account. If you are wondering how to make huge profits in
this market, let there be no misunderstanding. If it doesn't look real then
people will not pay the real margins that you're looking for. If what you
are creating doesn't look better than the out of the box products then guess
what? You loose the sale. You must educate yourself on the methods, styles
and techniques of vertical hand carved concrete. If you think you are
going to buy a stamp set of a particular pattern that mimics real stone to
generate top dollar in your market place, you are delusional. Will you
sell some projects? Sure. But you have just entered into an arena where
every other contractor on the block has the exact same stamp set or access
to the exact same patterns that you do. Now tell me your client is so dumb
that they will not discover this truth on their own. That path leads you
and half a dozen other finishers to a lets duke-it-out for a bag of peanuts
profit margin at best. If that's where you want to live that's fine but I'd
rather be recognized for my differences than to blend in with the status quo
of what's offered in the industry.
Key Note - A Shift in their Thinking
You replace the five stamp styles on a sell sheet with unlimited design
potential and I mean unlimited. For instance if you wanted a wall to look
like a 100 piece stone puzzle so be it. Free hand it or throw it up on an
overhead projector. After your wall mix has been applied, then carve away.
If fact any design you can see, draw or find on the internet will do. That
means the stone designs in multi-million dollar estates, chateaus, and
mansions are now at your fingertips and quite frankly, many times your over
all projects will have a greater impact on regular folks not just those who
live in the lap of luxury. You have the ability to create the look and feel
of a rare mason executing a lost art right in the midst of their home.
Remember perceived value is value. I could spend all day talking about the
possibilities but it is your job to tap imagination until you turn your
client on. The alternative is to settle for a stamp set or what ever
comes out of a box.
To the Bat Cave Lets Go
I recall one client who was so enamored by the entire process
and upon learning that anything was possible, she inquired about a hidden
door. She said it was her dream to have a secret door in her house just
like in the Batman shows she used to watch as a kid. Now I'm talking about
a well to do full grown adult female living in a gorgeous home expressing to
me her desire to have secret passage way. It took me by surprise! I
blurted out "anything you want I will do". Now you can just forget about a
square foot price right about now. After listening and pondering on what
it would take to fabricate this door I gave her two options. The elaborate
secret door or the practical secret door and the difference was $15,000.
She settled for the lesser $7,000 dollar door. I took me three days and you
would have thought I had just given her a winning lottery ticket, 14 day
vacation in Greece, paid off her mortgage and Oprahs private cell phone
with a call anytime we will do lunch offer.
A Step Above the Rest
One of the biggest things that help me gain top dollar is
tapping into the "hidden talents" of the client. The more involved they
are in the creative process the better. Your job is to unlock ideas,
innovations and dreams while giving them all the credit. You just helped
them explore the artistic part of their life even if they think they don't
have one. This is done by asking them tons of questions about what they
like, where they've been, where they would go if they could, what colors
they like, and anything that relates to the creation of this new
environment. You are fishing for threads of positive information that tap
into a particular look or décor that you can execute. The more educated you
are the more you can pull off. Once identified, refocus on the positive
points of interest while creating their new Utopian environment. It is
your job to take in all those pieces of data and represent it back to them
as their vision. When done correctly it could be the difference between a
25% profit and 125% profit job.
Isn't Bling Supposed to be Shinny?
It is a lot easier to ask for more money on a project when you
have established the fact that you will be executing their vision while
offering something that your competitor can not. Giving them a unique one
of a kind element that will no doubt be the talk of conversation for years
to come is only one of the benefits they will enjoy in their new
environment. The benefits by adding so much perceived value to your client's
home or business can not be estimated by just one sale. We all know that
everyone who sees this new faux or elaborate textured wall will no doubt be
inclined to question the owner as to where he purchased the materials or who
did the work. And upon learning that the entire job was hand carved and
sculpted only adds more mystery and intrigue. Clients appreciate their
ultimate faux and are glad of their decision choosing you over the guy who
was just going to glue something to the wall that he pulled out off a box.
They spent a little more but the value to money ratio was higher than the
rest of the competition.
Only If You Want Too
Now you don't have to charge your client for all the perceived
value you just added to their home. This just simply gives you a big edge
over the competitors that offer the run of the mill. Only you know how
much time and effort it will take to execute the new found dream. All the
client knows is that you are the only one that can deliver the incredible
and that gives you the edge when it comes time to negotiate.
Online Resources
www.VerticalArtisans.com is more than a education subscription
site. Mixes and Materials is a section that represents almost all the
viable wall mixes in this country. Tools and Equipment offers rare tools
and other innovations. Coloring Systems keeps you abreast of the artists
favorite products used to create some of the best faux stone in the market
place. The Industry Links section is where a deluge of information
containing products, teaching, referencing and other helpful resources that
will guide you into the realm of hand carved vertical concrete.
Meet the Artists if a fast growing section of the world's most talented
artist in the field of themed environments and sculpted rock.
Who Can Do This
There is nothing keeping any of you from this arena of art.
Only your desire to walk through its doors remains. I'm also not special.
Before starting my company 10 years ago I was a restaurant owner and in the
software industry. I never though I would be doing what I am doing to day.
Needless to say it is still a step by step process just like any other faux
you have learned and once the principals are learned there are no limits to
what can be achieved. Decorative concrete is not just flat work. A
colleague told me there are four times as many walls as floors and he is
right. Zig Ziglar once said you don't have to be great to start but you do
have to start to be great.
So let the adventure begin.
Note:
Nathan will be speaking at the 2009 World of Concrete Expo in Las Vegas.
His three hour seminar entitled Vertical Decorative Concrete - Passing Fad
or Untapped Market will be offered to over 85,000 attendees.
by Nathan Giffin
www.VerticalArtisans.com
To most of you who are aggressive in the work place and keep in
touch with the trends, there is no doubt that the latest buzz is vertical
decorative concrete. Over the last decade I have watched the evolution of
stamped concrete, acid staining, stenciled concrete and most recently
vertical stamped concrete. There are great artisans in each of these
fields but few who generate top dollar for their craft. Maybe the
majority of those individuals just don't perform in excellence, I can not
say. But when it comes to decorative vertical concrete I can give you
several perspectives on what it takes to be a success in the hand carved
vertical concrete arena.
Perceived Value is Value!
Do not approach your clients from a per square foot price. Why? Because what
in the market place will they compare you too? Cultured stone, cast stone,
stone veneer for example. These are all per square foot price structures
ranging from 12 - 50 dollars a square foot installed. If you allow your
self to be labeled in that range you have just established your cap.
Clients rarely start out by saying "I want to spend the most possible for
your products." That would be great but the truth is they will only part
with their money if they see you adding more value in what you are doing
than your competitor. Thus, you bring your client, by the hand, into the
world of faux reality. There are no limitations to what you can create.
Manufactured products are just not as diversified enough to cover the scope
of "all things are possible". When those products reach there limits we
are just getting started.
Faux Reality
Faux reality is an oxymoron but they are two words that bring loads of cash
to your bank account. If you are wondering how to make huge profits in
this market, let there be no misunderstanding. If it doesn't look real then
people will not pay the real margins that you're looking for. If what you
are creating doesn't look better than the out of the box products then guess
what? You loose the sale. You must educate yourself on the methods, styles
and techniques of vertical hand carved concrete. If you think you are
going to buy a stamp set of a particular pattern that mimics real stone to
generate top dollar in your market place, you are delusional. Will you
sell some projects? Sure. But you have just entered into an arena where
every other contractor on the block has the exact same stamp set or access
to the exact same patterns that you do. Now tell me your client is so dumb
that they will not discover this truth on their own. That path leads you
and half a dozen other finishers to a lets duke-it-out for a bag of peanuts
profit margin at best. If that's where you want to live that's fine but I'd
rather be recognized for my differences than to blend in with the status quo
of what's offered in the industry.
Key Note - A Shift in their Thinking
You replace the five stamp styles on a sell sheet with unlimited design
potential and I mean unlimited. For instance if you wanted a wall to look
like a 100 piece stone puzzle so be it. Free hand it or throw it up on an
overhead projector. After your wall mix has been applied, then carve away.
If fact any design you can see, draw or find on the internet will do. That
means the stone designs in multi-million dollar estates, chateaus, and
mansions are now at your fingertips and quite frankly, many times your over
all projects will have a greater impact on regular folks not just those who
live in the lap of luxury. You have the ability to create the look and feel
of a rare mason executing a lost art right in the midst of their home.
Remember perceived value is value. I could spend all day talking about the
possibilities but it is your job to tap imagination until you turn your
client on. The alternative is to settle for a stamp set or what ever
comes out of a box.
To the Bat Cave Lets Go
I recall one client who was so enamored by the entire process
and upon learning that anything was possible, she inquired about a hidden
door. She said it was her dream to have a secret door in her house just
like in the Batman shows she used to watch as a kid. Now I'm talking about
a well to do full grown adult female living in a gorgeous home expressing to
me her desire to have secret passage way. It took me by surprise! I
blurted out "anything you want I will do". Now you can just forget about a
square foot price right about now. After listening and pondering on what
it would take to fabricate this door I gave her two options. The elaborate
secret door or the practical secret door and the difference was $15,000.
She settled for the lesser $7,000 dollar door. I took me three days and you
would have thought I had just given her a winning lottery ticket, 14 day
vacation in Greece, paid off her mortgage and Oprahs private cell phone
with a call anytime we will do lunch offer.
A Step Above the Rest
One of the biggest things that help me gain top dollar is
tapping into the "hidden talents" of the client. The more involved they
are in the creative process the better. Your job is to unlock ideas,
innovations and dreams while giving them all the credit. You just helped
them explore the artistic part of their life even if they think they don't
have one. This is done by asking them tons of questions about what they
like, where they've been, where they would go if they could, what colors
they like, and anything that relates to the creation of this new
environment. You are fishing for threads of positive information that tap
into a particular look or décor that you can execute. The more educated you
are the more you can pull off. Once identified, refocus on the positive
points of interest while creating their new Utopian environment. It is
your job to take in all those pieces of data and represent it back to them
as their vision. When done correctly it could be the difference between a
25% profit and 125% profit job.
Isn't Bling Supposed to be Shinny?
It is a lot easier to ask for more money on a project when you
have established the fact that you will be executing their vision while
offering something that your competitor can not. Giving them a unique one
of a kind element that will no doubt be the talk of conversation for years
to come is only one of the benefits they will enjoy in their new
environment. The benefits by adding so much perceived value to your client's
home or business can not be estimated by just one sale. We all know that
everyone who sees this new faux or elaborate textured wall will no doubt be
inclined to question the owner as to where he purchased the materials or who
did the work. And upon learning that the entire job was hand carved and
sculpted only adds more mystery and intrigue. Clients appreciate their
ultimate faux and are glad of their decision choosing you over the guy who
was just going to glue something to the wall that he pulled out off a box.
They spent a little more but the value to money ratio was higher than the
rest of the competition.
Only If You Want Too
Now you don't have to charge your client for all the perceived
value you just added to their home. This just simply gives you a big edge
over the competitors that offer the run of the mill. Only you know how
much time and effort it will take to execute the new found dream. All the
client knows is that you are the only one that can deliver the incredible
and that gives you the edge when it comes time to negotiate.
Online Resources
www.VerticalArtisans.com is more than a education subscription
site. Mixes and Materials is a section that represents almost all the
viable wall mixes in this country. Tools and Equipment offers rare tools
and other innovations. Coloring Systems keeps you abreast of the artists
favorite products used to create some of the best faux stone in the market
place. The Industry Links section is where a deluge of information
containing products, teaching, referencing and other helpful resources that
will guide you into the realm of hand carved vertical concrete.
Meet the Artists if a fast growing section of the world's most talented
artist in the field of themed environments and sculpted rock.
Who Can Do This
There is nothing keeping any of you from this arena of art.
Only your desire to walk through its doors remains. I'm also not special.
Before starting my company 10 years ago I was a restaurant owner and in the
software industry. I never though I would be doing what I am doing to day.
Needless to say it is still a step by step process just like any other faux
you have learned and once the principals are learned there are no limits to
what can be achieved. Decorative concrete is not just flat work. A
colleague told me there are four times as many walls as floors and he is
right. Zig Ziglar once said you don't have to be great to start but you do
have to start to be great.
So let the adventure begin.
Note:
Nathan will be speaking at the 2009 World of Concrete Expo in Las Vegas.
His three hour seminar entitled Vertical Decorative Concrete - Passing Fad
or Untapped Market will be offered to over 85,000 attendees.
Replies to This Discussion
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Permalink Reply by Nathan Giffin Vertical Artisans on
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Richard L. Winget said:Nathan
I disagree with the fact of perceived value, you cannot adjust your price for each client because every client perceives value differently. i.e. one person might say yes to a $7,000.00 dollar hidden door. What if another percieves the value higher and agrees to pay you a higher amount? this is just a scenario but what if the two meet and discover they paid different prices for the same door! your not a contractor anymore your more of a snake oil saleman. I know it is difficult to sell art work, I have been doing it for a very long time, there must be a market value and there is and it is what you as an artist establish in your demographic. Thats not to say that different textures, facades and waterfeatures warrant different prices, they do! It is based on labor and materials which is what we as Owners of artistic companies dictate. The other thing that I have a difficult time with is the way you throw around the word perception, perception is what people gather from (in our case) hearing. If you tell them its worth X amount than you are placing the value on it, thats what salesman do no doubt, but you may of inadvertently capped it yourself. Profit margins should be consistent not range from 25% to 125% thats flirting with disaster. I think having a baseline price allows customers to spend their own money. It allows you the freedom to let their imaginations run wild, of course I lead them down certain paths and make them aware of even the most outlandish ideas, but ultimately it is their ideas realized and they create their own budgets. The best thing I like about this approach is the client is not asking "how much does this cost?" There is a fine line between perception and deception be careful that what you are teaching is not taken out of context. These of course are my opinions and thats my two cents! I look forward to more of your insights at the WOC show 2009!!! Respectfully
Richard L. Winget
Example:
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I understand your point...but that doesn't change the fact that perceived value is still value. I also don't believe that it is a "snake oil tactic" when what we are talking about is a precious non renuable commodity and that is your time. The industry is hard enough to deal with as far as standard prices....and I might add that we are not talking about "working for the man." That is to say we are all artist and we exchange our time for talent in somebodies back yard or basement.
Who you are as an artist also dictates your value.
We still live in a capitalist nation therefore we can place a value on a perceived value. A picture could be worth $10 or $10,000. No snake oil there. Your work as an artist .... you are still at the end of the day sacrificing your non renuable time for money and only you can put a price tag on that. I mean lets say you get real busy and you have been getting X amount of money per job. But you are watching your future clients go to others because you cant get to them....well you time is now more valuable than it was before you were extremely busy thus you raise your price....
I have to attribute certain elements of your argument to the unions. I am not a fan of the unions as I feel they foster a welfare mentality. That's a topic for another time, but unions would "regulate" how much a piece of art would cost by throwing a formula at it and then pay the actual artist a per hourly wage....driving him into the ground by the way, while collecting all the gravy. That's whats not fair...its exploitation. At least those are the stories I have heard from other artists. I'm sure you have some stories of your own.
Correct Mind Set:
Over all it not that you adjust the price for each client as much as you establish the perceived value in perspective to other market options thus creating a market for yourself.
25% to 150% or more directly relates to what you do with a bag mix that you paid 25 bucks for. If fact it could be much higher than that. You could sculpt an ash tray or the Mona Lisa now should you get the same percentage for both projects.......
I like that fact that you bring out these points because this is all healthy conversation that needs to be understood by all. When you have a good perspective of all of these points it will no doubt make you a better business person. And don't forget the client....many times he is trying to beat your price down whilst all the time can't wait until your finished so he can throw a party and brag about how much money he saved after he promised he wouldn't tell anyone what you did it for. Can I get a witness. Its all about negotiations. You need to know what your worth and if there i anybody else around that can do it in excellence.
I have scruples and my clients are happy. They get some of the best of its kind in the nation as do your clients. We cater to the affluent and they don't mind paying for our time. These are my opinions.
Peace
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Fair and balanced.
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Permalink Reply by ColinD on
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Some great advice here.. much appreciated as always.
Richard in fairness to your client maybe he had a vision for the house that included your work and the new furniture, so had an over-all budget, maybe again the furniture salesman is miffed because he heard his customer was getting all this building work done and could have paid more for the funiture LOL.
I like to think your work inspired him to step up and get new furniture to compliment your work, even if he could'nt really afford it.
C
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Thanks Richard, we're doing ok, I'm still just getting the stonefacing business together, but have the confidence to know I'll do a good job.
I wish I could have done some sort of apprenticeship, especially to learn the construction side of things, I've just been thrown into it, as Nathan was was he started, still I have a lot of enthusiasm and that's getting me through.
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