Examples of LCC Proposals

We have another written example of someone looking to promote their LCC. This one's from Randolph Cole from CT, USA, so I presume that's Connecticut, and some things to look out for, once again, he talks about the risks and problems. The whole point, the whole way you establish value for the LCC, is not so much about how great life's going to be when you've got it but more about how bad life won't be if you do it. We're selling really, this is a risk mitigation thing. It's like an insurance policy. We have to establish how bad life will be if you don't do this step properly. It's a focus on risk. He uses the surgeon metaphor again, that old chestnut. There's a, "We promise," about what you're going to get, there's a process, and he talks about what's included. So without any further ado, let's go and have a look at Randolph Cole's needs and options review.

Randy calls his the vision and strategy review, so something slightly different. You can see he's got it laid out very much according to the textbook. He starts with a problem. "It's not uncommon for a healthcare organization to know it needs a building project but to be unclear on how best to start, or worse yet, to launch into design services without carefully establishing the groundwork for the project." So this is what typically happens, isn't it? "Just as you would not expect your doctor to prescribe medication to you without first diagnosing your illness, likewise, it's very risky to begin a design process without first establishing your project's unique objectives and parameters. It's for this reason that we have developed the vision and strategy review, a necessary first step for establishing the basis of your project."

Nicely done. Okay, the promise. "The vision and strategy review will enable us to fully understand the requirements, constraints, and potential roadblocks for your project. It will minimize your risk of faulty designs by allowing the proper groundwork upfront or allow you to create the proper foundation for a project, saving money in the long run." You notice a common theme between this and all the other examples that we're giving here. "It will also allow you to explore your goals. It will help you determine the working relationship, see if we're a good fit for both parties before committing to further design services." Once again, removing that risk.

The process. "The vision and strategy review is a structured process," I like it, "that will allow the following. We will meet to discuss your preliminary objectives. We will develop an outline brief. We will review site options." We will review this. We will review that, and da-la-la.

Outcome. "A vision and strategy review report that you can use to get an accurate proposal from us or any other architect is yours to keep." Now what he does is something I like here. He gives an example of how this has been used. "A hospital system in Upstate New York believed a satellite in a nearby community was desirable. Our initial engagement helped them to determine the best site, what the functions should be there, what private physician groups might also want space, and how to use a tailored development process to use third parties to own and lease the system, the building. The groundwork lead to an on-schedule, on-budget design and construction of the facility, which has now been so successful the system has initiated a second phase project only two years later."

Fantastic. So what I like about this actually is giving an example of how someone else has used the system, and it's worked really well for them, so I'm sure you've got examples or you will very soon. "The investment for this vision and strategy review is $1,250, inclusive of the initial site visit and follow-up meeting," and then he just tells them how to get started. "Yours truly, Randolph Cole. W. Randolph Cole, Founding Principal."

Now he does one other nice thing down here. Unlike the case with [Deon 00:04:02], he's got his mustache and his goatee and his glasses, so there's no need to pretty up Randy's good-looking presentation. Just a nice little overview on who he is, what he's done. It's a little bit of, shall we say it, positioning. Nice job, Randy. I think you've done a swell job, and I'm sure you'll do very well with it. Okay, that's how Randy Cole did it.

Let's have a look at a written sample, this is from Dion Gosling based in Auckland doing some good work up there. Let's see how he has written it out.

Key things to look out for here. Once again, he focuses on the risks and the problems. People tend to ... We spend more money to avoid pain or get out of pain than they will to gain pleasure. Very negative focus, which is good. He uses a surgeon metaphor, talks about the promise, what you get. He talks about the process, talks about what's included and he's got a really nice looking application form. He's done a great job on this, let's see how Dion has done it.

Okay. Needs and options review, address, client name. He starts off just a nice ... Basically using the format that I gave for creating a product. The problem, it's not uncommon for people to know they want to do a building project, but they've thought about  for quite a while, but just don't know the best place to start. Great. Or worse, launch into [inaudible 00:00:57] of design service without establishing a relationship or, worse, still not carefully establishing the groundwork for the project.

The promise, a surgeon wouldn't operate without proper diagnosis. He's using that old chestnut, which is probably my favorite for this type of situation. The needs and options review works the same way. It'll allow you to start an exploration, designed to precisely understand your requirements and potential roadblocks. Two keys, and then gives you findings and recommendations, a plan to move forward and a timeline and rough order of cost.

The process. We developed this process while doing our sports projects. These typically involve a large number of groups and a diverse range of people. We saw an issue in these projects of people starting design and construction before they'd fully done their research and homework, before they had critiqued their ideas. Do you recognize that from anywhere? That's come straight from the incoming call script.

We think this applies across the construction industry. It also happens in residential projects too, which people are trying to run before they have their walk mastered. Pun intended. The consequence of inadequate, upfront research and needs and options is like building a house on bad foundations. Once again, another good metaphor. People love metaphors, because we understand them. The foundations, the most important part of the whole house, everything is built on top. It's very expensive to change the foundations once you have started to build upwards. It's very easy to change them if the lines are simply on a plan.

Right, straight out of the incoming call script. He's adapted the bits he likes for himself. Great job. We spend a little more time on ... And most other firms who rush their clients into design phase. Once again, great. There are five important steps to building, the needs and options review, which is the first step, the design phase, construction and documentation phase, building and contract management, completion phase.

On the next page, we've outlined the first step, what the needs and options review is. [inaudible 00:02:58] so this might look familiar. He goes through choosing an architect isn't easy. You need the right architect that has specific skills and character for your home project. The right fit between you and your architect is key. This may or may not be me, so really we're saying that the key objective of this phase is to get you your information, but also find out if we're a good fit. In our experience, the best way of finding out if we're a good fit is to fully understand what you're looking for. This is achieved through the initial consultation and our needs and options review.

If, for some reason, we discover we're not an ideal fit, then you're free to take the review report to another designer for them to continue the process. Here's a good image of Dion. It's always good to have an image of yourself. Don't forget they're buying you, so they're going into relationship with you for the next one or two years. It would be nice to see who they're dealing with. If you're a good looking guy like Dion, all the better. Brilliant. If, for some reason, we discover that we're not an ideal fit, then you're free to take the report to another designer for them to continue the process. Great. Details down here.

Then, he goes through what the needs and options review covers. These are the things that Dion is happy to include in his needs and options review. He finishes going back to the old chestnut, a surgeon wouldn't operate without proper diagnosis. Our initial needs and options review starts the same way. It starts a strategy designed to precisely understand you, your requirements and give findings and recommendations, a plan to move forward with a timeline and a rough order of costs to assist your budget.

What do you get? Phase one, an outline brief for your project, $600. Meet onsite, clarify issues [inaudible 00:04:43] whatever it is you want to cover. What I like about here is it's nice and simple. He's given them two options, which is always a good idea, and they can just tick the one they want. That's not all. They can also go down ... By the way, just by giving people two options, it gives them an opportunity ... People always want to feel they have a choice. If they don't have a choice with you, because you just give them one option, what they'll do is maybe get another quote.

You find that if you give them two or three options, now they feel they've got choices. The beauty of it is they're all with you. It is always a good idea to give them a couple of options. We noticed down here that Dion then gives us a chance to fill out their details and enter the date. Brilliant. Postal address, all the basic details so they're good to go now. They've chosen their option. Using the incoming call script, I think, is a pretty strong influence in his offer for the LCC. He's done a really good job.

Now, one of the reasons I used Dion as an example because, one, he's done a really good job here too. Secondly, he's sold one of his LCCs for 10,000 New Zealand dollars, which is actually about 7,000 US dollars or about 10,000 Australian dollars. Their exchange rate is about the same as ours at the moment. That's a pretty good effort for one LCC. Now, I don't think he used to do this. Now, he's got a process. He's got a product. It's a lot easier to start charging for a nice service. Great. Good job, Dion. Well done.

Dion's looking so good just before we finish here, but let's have a talk about photos and image. There's a couple of things he could be doing here to improve his image here. First thing is give himself just a little fine mustache and, I think, a little goatee, which a red goatee of all things as well. Just a little goatee, nice fat one. A little, I think, a little bow tie because you don't see too many architects wearing a bow tie. If you're going to differentiate yourself, this would certainly do it.

Just something to think about Dion before you go on, particularly while you're thinking about your branding and your position, consider that. In fact, that's the last thing here. We need your John Lennon glasses. There we go. That is how you make it better. Thanks Dion, thanks for letting us use your example. Hopefully that little tip there will bring a lot of pleasure to a lot of people.

Okay, let's have a look at an email sample for selling your LCC. This one's coming from Ian in Melbourne, not Ian Melbourne, but Ian in Melbourne. And you notice, what I like about this is all he did was send an email and he came back and got a rather nice surprise. So that the subject of the email that he sent to me was "Richard I had a surprise". Richard, I've been catching up on my emails after being out for a few days and discovered one from a prospect I might have mentioned to you. It's a job, it's a bit messy, and I was not that keen on doing it. But just before going to Sydney I sent him an email explaining the needs and options review, which is the LCC. Before going any further I told him it cost $2,000. I've just opened an email that they sent yesterday, and they said, "Fine, how soon can you get it done?" It would seem it's working, thanks for pick and the bar. Ian.

Brilliant, okay, so let's have a look at the email that he sent them because it uses a lot of the language, I suppose, and some of the tools and strategies that we've talked about for selling an LCC. So let's go and have a look at his $2,000 email. So some key things I want you to focus on as we're going through his email. The fact that he's largely focused around the risk, okay? Largely focused on the risk which increases the need for doing some more analysis. He asks some strip naked questions, some questions that they don't have answers to, which is going to make them feel uncertain. He talks about potential problems, not with info, but by not having the information that's required. He outlines what they get if he does his advise service, and he outlines the fact there's no commitment to me, or no commitment to him.

So Ian says, "Good morning, from our discussion so far, it seems you've got several main concerns regarding your project. There's a limit on how much you are comfortably willing to spend on your renovation, and understandably you want to stretch this as far as possible, but at the same time, you don't feel you know what's actually feasible." Okay, which is brilliant, because this is playing straight to the hands of needing to do, provide some advice. Here we've got some rapport going on here. He's really getting good rapport. "Must be difficult for you, feeling that at this point you have to make difficult commitment to someone to design your renovations while not having all the answers to some very basic questions. Including," and then he goes through the basic questions.

He's really saying, "Unless you've got these questions answered, you're at risk. When a design is started without the answers to these questions, it almost always means significant design changes later on, with time and cost overruns during construction." Which is true, isn't it? You know, it is true, but how many people say that? "Perhaps it's better at this stage to pause and to thoroughly explore your options before proceeding with your project any further." So a big stop sign, really. Quite right. "Thinking about how I can be of most benefit to you and what I can offer, is to prepare a design appraisal report that will answer the questions above." So if they agree that these questions up here are actually likely to lead to these type of problems, then the next logical thing to do is get, you know he's now offering to sort that out for them.

"Investment for this design appraisal report to thoroughly explore all your options is $2,000. Your design appraisal will include the following items:" So then he lists down what he's actually going to show them and give to them, which all seems quite useful. "The valuable insights that you gain from this design appraisal report can be used working with any design professional." So what's he doing? He's taking away the risk. You know, you're not committed to me, but whoever gets to ultimately end up doing the design work is going to be better off because they've got all of this stuff here.

"With this information, you will then know your requirements in detail. What you can and cannot do in terms of various building and planning regulations, and what options you have in terms of design layout." So all good things, right? "You will also have much better sense of what you can reasonably expect to achieve within your budget, which is usually the number one question, [inaudible 00:04:26] , more residential, I suppose, and commercial, everyone has is how much is it going to cost. Your design appraisal report will take two weeks to prepare. Regards, Ian." Bang. Nice and simple.