As you know, I am away this week on business for Fivecat Studio and I will not be publishing a podcast episode. If you need your weekly fix of the Entrepreneur Architect Podcast, I recommend that you search the archives and find an older episode that interests you. There are more than 30 to choose from.
As a bonus this week, in lieu of the podcast, I am sharing an additional blog article. The following was actually a comment left by my friend Greg La Vardera after he listened to the most recent podcast episode. I thought his words were so valuable for others to read, I asked him if I could share them here as an article.
Turning Work Away is Not Good for You or the Profession
I listened to your recent podcast titled How To Raise Your Fees and I agree that it’s a great message. However I have to take exception to the overall strategy of rejecting small projects. I completely understand why you would do this and why it is good for your practice. I would counter however that it’s not so good for the profession.
Taking a tip from your past post, 7 Reasons Why Small Firm Architects Should NOT Abandon the AIA, I’d like to suggest 7 Reasons Why Architects Should not Abandon Small Projects.
1. Turning away a potential client that comes to you for help is never a PR move, even if you refer them to a colleague who does a great job. It leaves people with the impression that their project is not big enough or important enough, except maybe for an architect with a struggling practice or low skills. Imagine your doctor turning you away because your cold or allergy is not serious enough? Practically unheard of.
2. It reinforces the impressions of architects as elitists or only serving the well-to-do client. If we want to expand the domain of architects into more of the housing market, then we have to be prepared to serve people that come to you with small scale projects.
3. Small projects are a challenge. Doing a small project profitably is not an easy task. A single phone call can push you from profit to loosing money on a tiny job, but if you get good at delivering value to clients in these situations, you’ll learn lessons that you can apply to make you more profitable all across your practice.
4. Small projects are potentially very profitable. The consumer understands that small quantities are often more expensive, on a unit basis, than large quantities. Anybody that has shopped at a buyers club and taken home jumbo sized packaging understands this, and is likely to tolerate a higher rate of charges for a small scope of work. If you can do that work efficiently, it can be a very profitable project.
5. Some of these prospects once turned away may not work with an architect at all. They may work with the builder to design the project, or an unlicensed designer. Once they get their project done this way there is likely no way to recover the karma lost on that opportunity. The story that person will tell forever more is “No, we did not need an architect to do this and you don’t either”. We as a profession cannot afford to give that story legs.
6. Some prospects will come to you, not with a small project, but with an expectation of a very low cost for your services. “I’d like you to design a house for me for 5,000 dollars”. Impossible. Yes, impossible for custom design services, but every architect should be prepared with what I call a Five Thousand Dollar Solution for a prospect like this. Whether it is a group of reusable house designs, your own catalog of offerings, or a standardized detail package that only requires floor plans, you should be able to offer that prospect a solution at much less cost than a custom design. And here’s the kicker – that solution should also be potentially much more profitable for you. A modification of an existing plan or some other scope of work is easy for you to achieve because it uses a body of already complete work.
7. I don’t really have 7 reasons. I just used that number because Mark used it on his post about the AIA, but you get the gist. Limiting your practice may be good for you on the surface, or it may be good for the friend to whom you refer your small projects, but it could be better for you, as well as for the profession, to take on that work being mindful of expanding the domain of architectural services for everybody.
What are YOUR thoughts? Should architects serve EVERY market?
Greg La Vardera is an architect practicing in Merchantville, NJ outside of Philadelphia. Aside from his local practice, his work has included off-site building techniques, design and marketing of house plan products and the development of energy efficient wall systems based on Swedish precedents. Greg is also is a founding partner of ByggHouse LLC, a construction technology consultancy focused on scandinavian building technology.
Photo Copyright: levkr / 123RF Stock Photo
Excellent!
I listened to the podcast yesterday and had the same thoughts. Thanks Greg! now I don’t have to write anything down other than this response thus saving time. An architecture practice is very related to it’s locations. In Mark’s neck of the woods there are many more high end projects with high end price tags. In my neck of the woods, a 500k project comes along only every several years. I often do projects that may entail only a few hours of consulting. It’s a great way to get my name and reputation out there. It’s like advertising where they pay you which is even better than free. Consulting often leads to larger jobs and is a great way to try out the relationship. I do a $250 consult service where people hire me for just a few hours of on-site brainstorming. This only adds up to a few thousand dollars per year but really showcases what an architect can do for someone who might not otherwise have considered hiring an architect. The $250 consult cards around town are also much more effective advertising than simple business cards.
Bob, can you tell me more about this service? I love the concept! How do you let it be known that you offer this service, do you have a standard contract? Does it have limited hours/services?
I see you leave consult cards around town. What do they say?
you can see my card here: http://swinburnearchitect.com/wordpress/?page_id=1184 (scroll down a bit)
There is no contract. I show up, we discuss the clients ideas and goals and I offer suggestions. There may be some sketching. They pay me $250 It rarely goes beyond 2 hours.
This sprung from doing initial (free) meetings that went on way too long and I felt like I was giving away too much design assistance. It can be pretty intense in a fun way as I am on the spot with the expectation that I will be brilliant and engaging. In this way it is excellent practice at interacting with all clients. And for the client, it provides a window into what it is like to work with me. Often these lead to a signed contract to continue the conversation/project. Often the good karma comes back to me down the road with recommendations.
Often, people call me at the recommendation of a previous client or a builder or, most often, from having discovered my blog. I can gauge from that conversation whether they are interested in moving into a regular intro meeting after which I write up a proposal for full services or if they would benefit from a few hours of help getting their minds around all the possibilities.
I hope this helps.
Yes, thank you Bob. Would you consider sharing (off line) what your contract for this service looks like?
most of my contract – the standard parts are on the blog page referenced above. the 250 consult involves nothing more than showing up at the appointed time and place, consulting, receiving a check for $250 and leaving. I don’t even write up a bill.
This is a fantastic discussion for which I respect Greg’s comments tremendously. I can’t say I’m in 100% agreement today, but over the course of the past 11 years, I have agreed with these point at some time in owning my own practice. It’s an important discussion. I think we should be having this conversation but I think we need not feel we must have consensus in order to have the conversation. Great job Greg.
Great and important topic. You’re right in everything. We don’t have to turn away the small projects, sometimes these projects lead to larger projects. It’s Ad for you that can lead to bigger projects by same client. Thank you
I beg to differ on the doctor analogy. Here in Australia doctors (GP and Specialist) do close their books and do not take on new clients if their work load is full and yes you often get referred to a college, either in the same practice or nearby. I don’t think this makes the doctor elitist, just very popular, often for good reason. In fact this will encourage me to try my darnedest to become this client/ patient if possible.
I do like the idea of having a catalogue of a stock designs, this will work with the green field sites and maybe a knock-down rebuild.
I should also add, small renovations are my bread and butter. In between the larger projects. I can’t see myself giving these away to quickly.
I made that mistake, to refuse small projects while we were engaged in large ones and later it came against us.
The crisis started and I just lost my niche of low-cost house projects and 5 years later I still struggle to ocupy my leading position on that market. The niche is now very concurential.
The silver lining of the 2008 downturn for us came via small projects,efficiency and the ability to standardize our method of delivery. Luckily as the economy recovers we have been able to employ these means to other projects….seems that those desperate times so daunting at moment forced us to improve.
Excellent! As much as you hear our profession complain about the public thinking architects are too expensive and/or elitist, the more we work with small projects the more opportunity we have to change public opinion. We just wrapped up a $150K second floor addition, and the client is referring us to everyone he knows. So much that we’re now working on the house next door. We were able to show him the value and in turn, that’s starting to pay off.
Good input. I think it is more about the type of client, than the size of the project. I will take a small job for a client that understand the value of my work and is willing to pay for it. I have learned to weed out clients that want to pay the minimum they can and then demand a lot. I got hired for a very small project: roof patio and pergola. I threw in a couple of ideas for “future” renovations. A couple of weeks into it, the client decided to do a full $300k renovation. I revised my proposal, she didn’t even blink at it. It was the right decision, the house is transformed, looks great. Thanks Greg, and thanks Mark for your contributions.
Adriana, I think you hit the nail on the head here. If I have someone with deep pockets and don’t get the value of design, they still don’t make a good client. A small project for someone that really values your work is far more valuable to your business in the long run. In fact I have taken on very small projects for a client that didn’t blink at a fee that ended up about at 30-40% because they understood the value I offered get the planning approvals. This was more consulting work then design or technical work, but the result is they achieved the end that would not have happened otherwise.
Thank you for affirming feedback, and grateful that there are lots of other architects out there willing to reach out and prove our worth in all situations!
First, Reason #7 – I need the money! 🙂
An architect should serve every market they are interested in. Don’t take jobs that are not profitable, unless you really, really ,really like the person and want to help them. Don’t take projects from client who are shady or a pain in the ass, reqardless of fee or size. If I was interested in a specific type of architecture, size would not be a deterrent for me.
I have done a twenty run dog kennel off of a master bedroom (scotty owners) and I have done churches, apartments, houses, offices, and shopping centers. I measure and do as-built drawings. Love it all, man this is a great profession!
I can agree with these comments for the most part. Item 4 has some issues as I see it. I find that most small project clients are not likely to understand a higher cost related to smaller quantity. Greg hits on this in item 6, which I feel is a more appropriate response. There is a limit to allowable services on small projects. I do not think a business model that loses money just to cater to small projects is a viable one. I do not necessarily turn away small projects, but your small client must be willing to pay for your services. Scaled services are a definite way to handle this instance. If an agreement or arrangement like mentioned within item 6 can be worked out, then it does the profession a great service as a whole. Most of the issues on small projects deal with setting levels of expectations, scope, deliverables, and fees up front so neither side gets surprised in the process. I find this to be true of residential or commercial small project clients. (Really all clients)
Thanks for the perspective Greg.
As the economy improves, I hope to be heading back to increased project scope and budgets. Until then, I’ll still consider taking on a small project, if I can find a challenge in it. There is a big difference in someone coming to you with a small project and someone coming to you looking for a small fee. The small projects they usually come with a unique challenge and can be turned quickly. They can also provide an opportunity to explore a design concept that can then be expanded on in a larger project. I’ve learned to walk away from those seeking a small fee. They don’t seem to value the work and are not worth the headache that accompanies the check!
I don’t turn down small projects for several reasons. The first reason relates to number 5. I feel that if someone knows enough to call us over a contractor, then I want to try to give them the benefit of our service. The second is you never know where it will lead. More often than not we have received more work from this client down the road because we were willing to work with them on their small project. And third, a good referral is a good referral no matter what size the project.
A lot of my work comes from contractors and may involve only a quick second opinion or sizing a beam or they just want to run some ideas by me. $50 or $100 here and there. I try to be invaluable. but get a few dollars in the process. I try to keep my relationships with contractors strong.