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  • 1.  Architecture Proposal Strategy Boosts Revenue 300%

    Posted 03-03-2017 11:15 AM
    I thought I'd share this proposal strategy that I've been writing about a lot over the past few years - it's really starting to catch on and the firms using it are having great success.

    Recently, in the Architecture Firm Freedom Formula program I run with Scott Beebe, one of the member firms shared how using this strategy yielded a 300% increase in project revenue.

    The fee for the project went from $40k to $120k - at the client's request.

    That's an increase of $80k in the project fee for this small firm.

    This means less time hunting for the next project.

    Here's how it worked:

    Instead of offering only one service option, they offered 3 service levels.

    The lowest service level offered 'builder set' plans and details.

    Level 2 offered fully specified drawings and details.

    The premium level included level 2 plus full contract administration through the construction phase.

    The clients opted for the premium service level.

    I write about this strategy a lot because it just works.

    Offering multiple service levels is one of the easiest 'profit levers' you can use to increase your firm's revenue (and give your clients more options and better service).

    I go over more of the details and psychology behind this strategy in this article here (https://www.businessofarchitecture.com/business/write-killer-architecture-proposal/).

    Let me know … have you used this strategy successfully? Or what questions do you have about using this strategy?

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    Enoch Sears AIA
    Visalia CA
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  • 2.  RE: Architecture Proposal Strategy Boosts Revenue 300%

    Posted 03-06-2017 05:28 PM

    Letting clients self-select their project level has another benefit as well; Clients are happier and less stressed because they are in charge.

     

    Cheers!

    ~Lisa

     

     

    Wishing you prosperty in 2017

    * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

    Lisa Stacholy, NCARB, LEED ap BD+C

    LKS Architects, Inc.

    1848 Independence Square, Suite D

    Dunwoody, Georgia  30338

    ph 770-393-1125, fax 509-461-0053, Cell 404-247-3335

    www.LKSarchitectsinc.com

    www.HomePlaceStudio.com

    www.houzz.com/pro/Lstacholy/LKS-architects-inc

    www.facebook.com/LKSarchitectsInc

    * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

     






  • 3.  RE: Architecture Proposal Strategy Boosts Revenue 300%

    Posted 03-06-2017 05:48 PM
    Hello Enoch;

    This strategy may work for you in your area, however I have been trying many different strategies over my 50 + years in our area and I can not seem to get by the unlicensed individuals and builders lately with their fee structures that are brought to clients attentions.  I have not figured a way to deal with it, and I will not reduce fees to their level.
    I presented a couple with the same strategy you had suggested last week, they told me that their GC would do it for 1/4th of $X and that was for just Basic construction drawings. I told them that might do As Built and Preliminary Services, then proceeded to let them know you will pay for what you get.
    I have always relied on Word a Mouth and it has served me well, but I know today things must change, but how, I have not figured out yet.

    feel free to respond to my email at baparch@hancock.net 

    Respectively,


    ------------------------------
    Bernard Perkosky AIA
    Owner/Architect
    BaP Architectural Services
    Apalachin NY
    ------------------------------



  • 4.  RE: Architecture Proposal Strategy Boosts Revenue 300%

    Posted 03-07-2017 01:28 AM
    Hello All...
     
    Mr. Sears:
     
    What an effective, and simple system!  I do have a couple of basic questions, for starters:
    1.     Fee increase:
    OK, I see a 200% increase, in the $40K-to-$120K.  Where is the other 100% increase?
    2.     Pitch language:
    One thing I can have difficulty with is "warning language" about cutting services, etc., without sounding greedy / threatening / etc....  So, for the middle level (full docs, no field) what are some polite versions of "You're on your own during construction; rotsa ruck." ?  And, for the builder's-set, what are some polite versions of "Good luck getting it built well, and to the Design; rotsa ruck." ?
     
    Such "language" could be an invaluable aid to folks trying this tiered system...
     
    Thanks ---
    Bill
    william j. devlin aia, inc.,
    ARCHITECT
    Springfield, MA
     
     





  • 5.  RE: Architecture Proposal Strategy Boosts Revenue 300%

    Posted 03-08-2017 04:13 PM
    All well and good assuming you (and your liability carrier) are happy providing builder sets and then stepping back and accepting the outcome, however bad. Not to mention the hit on your reputation when the client tells everyone how incomplete your plans were (they won't remember saving the fee, trust me) and all of the problems with the design etc, because the GC was there to throw you under the bus and you weren't present to defend yourself. Not to mention the horrid details that GC and his subs decided to implement since you provided no drawings. The plan shops don't care, so if you want to get into a race to the bottom with people that charge absurd fees, have at it.

    Mercedes doesn't compete with KIA on price by removing the rear seats from their cars. Qualified architects get higher fees because they are worth it. They provide comprehensive services that "house designers" can't. In my experience if you can't convince a potential client of that fact then they should not be your client in the first place.

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    Gregory Ibanez FAIA
    Ibanez Architecture LLC
    Fort Worth TX
    ------------------------------



  • 6.  RE: Architecture Proposal Strategy Boosts Revenue 300%

    Posted 03-09-2017 05:30 PM
    Several of the previous responders have raised good points, which I won't repeat.  I would just like to add that in Oregon (where I practiced for 35+ years before recently retiring), state laws that define and regulate the practice of architecture stipulate that services during construction are required. Except for single family residences and very small projects, it is difficult to only provide "builder plans"  without being in violation of state law, i.e. we are "professionals"  expected to provide full and complete services.  The analogy from the medical world would be the doctor performing surgery, but not stitching the patient back together and putting on a bandage.  

    That being said, I do agree with your strategy of showing the client what better service can be provided -- with commensurate higher fees -- than just the minimum.  In blunt terms, more bang for the buck.  Good clients will understand this.  Clients who don't understand the principals that there are "no free lunches" and "you get what you pay for" probably aren't the people most of us would choose as clients anyway.  Even though in lean economic times, most of us have taken on projects and clients at less fees than we ended up expending. 

    Best wishes for excellent projects and even better clients!





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    Martha Peck Andrews FAIA
    Portland, Oregon
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