# Selling RRP Projects



## Dean CRCNA (Feb 4, 2010)

As lead safe certified contractors, we all realize how hard it is to sell a RRP project. The main problem is the additional cost of compliance, which makes our estimates/bids higher. While there is no cure all to this, there are certain things we can do and understand to increase our ratio of closing RRP jobs.

After personal experience from trying to sell RRP projects and listening & talking with numerous contractors across the country … here is what has helped me.

STEP 1, LEARN THE LAW

Go to http://ecfr.gpoaccess.gov/cgi/t/tex...&node=40:30.0.1.1.13&idno=40#40:30.0.1.1.13.3 and http://toxics.supportportal.com/ics/support/default.asp?deptID=23019 and learn what the actual law says you have to do and don’t have to do.

In talking with contractors after they’ve taken their 8 hours renovator course, I hear a variety of different teachings. As an example:

Some instructors say to wear disposable mask. Other instructors say that it should be ½ faced respirators. Even a few instructors have mentioned full face respirators are required. However, the actual law doesn’t even mention any requirements on this subject.

You may be doing a lot of additional work, when you don’t have to. Additional work equals higher cost. By learning the law itself, you may find that your compliance cost can drop. Lower compliance cost means a lower estimate/bid. Quite often a lower or more competitive bid can make the sale yours.

If a non-certified contractor has a bid of $3,250 and your bid is $3,325 … it may very well be that the client will want to go with you … a contractor who is operating legally, ethically and will take precautions. 

We are hearing that Home Depot, Lowe’s and many major window companies have learned to cut compliance cost down so low, that they simply do precautions, don’t mention RRP to the customer and only give them the Renovate Right at contract signing.

Many contractors with many projects can simply not mention RRP, because they have learned to get the compliance cost low enough where it is not that big of deal overall. In some cases, by learning the law, you may find that RRP doesn’t even apply.

Naturally, not all projects would fall under this. Examples would be exterior painting, siding & window replacement and so forth. If this is you, go to the next step.

THE GOLDEN CUSTOMER

This actually falls into Step 1 (not even mentioning RRP). The golden customer is the client who is not looking for competitive bids. This could be the repeat customer, the referral or simply a new client who is not getting competitive bids. 

In these cases, your best bet may be to simply not go into much detail (if any) about the additional cost of RRP. If you start rambling on about the higher cost of compliance, you may send up a flare saying high prices.

If they’re not getting competitive bids, simply give them your best price … get the contract signed and only then give them the Renovate Right pamphlet.

STEP 2, ADD A PARAGRAPH TO YOUR ESTIMATE/BID

It amazes me how many contractors feel the need to blab about the RRP to prospective clients. This usually results in shocked and disbelief looks from the client. Instead of spending time wooing them with your friendliness, skills and professionalism … you shoot yourself in the foot.

Plus, with home improvements projects, homeowners want to talk about dreams, design and how good the finish product will look. They don’t want to talk about being poisoned or how the government is interfering with our personal lives.

Give your normal everyday competitive price, don’t mention RRP, but include a paragraph notifying the homeowner about unknown or unseen additional cost. To be fair, make sure the homeowner sees this, so they’re not surprised at contract signing. 

Explain to them in the paragraph, that federal law now requires all contractors to take certain precautions on homes built before 1978 and that these precautions have additional cost associated with them. Until you (the contractor) know if or which components have lead based paint an exact price to cover these additional precautions cannot be given.

Most likely, you already have an unknown or unseen paragraph in your estimate/bid. Simply add to it.

We’ve all experienced the glazed look and turn off in homeowner’s eyes when we bring up RRP. Going this route can help eliminate this.

You can also verbally let them know that they aren’t required to have testing done and you can simply take precautions on all components. If they choose to have testing, you can do it (certified renovator) or you can contact a lead inspector (for larger projects).

I will repeat that this is not something to sneak by the homeowner. Pointed it out.


TESTING

Many contractors are hesitant to offer testing. I was once that way, but have changed.

Originally, I hesitated to test, because if lead based paint is found, the homeowner may become upset for fear that their home’s value will fall when this is disclosed at the time of selling their home.

One day, I thought … “why not simply ask the homeowner if they do or don’t want to test”. Let them have a choice. I’ve found out that many homeowners choose to have their home tested if it could possibly save them additional cost on compliance.

This is especially true for contractors and homeowners who live towards the South, Southwest and West. Many of these homes don’t have lead based paint on them. In my area, it is good odds that 1940 and newer interiors don’t have lead based paint. 1950 and newer homes have a 75% of not having lead based paint on the exteriors.

We are losing a lot of jobs, because of the high cost of compliance, when the home doesn’t even have lead based paint.

To see what it’s like in your area, go to this link http://www.jchs.harvard.edu/publications/remodeling/remodeling2011/2011_remodeling_color.pdf, go to the very end, Appendix Table A-9 and look under “medium age of housing stock”. The higher the rank number, the less chance that lead based paint exists. 

STEP 3, CUSTOMERS WHO HAVE A NEED

When you point out the added paragraph in Step 2, many times a conversation will begin about what types of additional cost or what type of additional precautions.

An advantage to this is that you aren’t bringing up the bad subject of RRP, but merely answering questions. How I answer these questions, depend on which type of customer I think I may have.

THE HEALTHY CUSTOMER

We all have customers who are into health. You may notice exercise equipment, a juicer on the kitchen counter or a health magazine on the coffee table. These folks are usually very health minded.

As a lead safe certified firm, they actually have a “need” for your services … to keep them healthy!

Let them know you will take precautions to keep them that way. I also mention the latest report from Journal of American Heart Association that just 3.6 mcg/dl can give a 25% increase of dying of cancer … 55% increase of cardio vascular disease … 89% of having a heart attack and 250% increase of having a stroke.

THE LEGAL CUSTOMER

There are some customers (usually older) who simply want to do things legal. They have a “need” to work with legal and ethical contractors. With these folks, I stress IT’S THE LAW. I don’t go into all the boring law stuff … I just mention that LEGALLY no firm can perform renovations on a home built before 1978, unless they are a Lead Safe Certified Firm.

I also make a copy of this and put it with the literature I leave.

THE CUSTOMER WITH CHILDREN

Many parents wouldn’t consider taking precautions for themselves, but when it comes to protecting their children … they will do most anything. I talk with them, tell them the statistics, new research and then let them decide if they want to protect their children or not.

Many times they do.

THE FORGET ABOUT IT CUSTOMER

As we all know, there will be a lot of customers, who will be basically scoffing at this whole RRP thing. 

I’ve found that my chances are extremely low in convincing these folks, so once I feel they are this type of person … I wrap it up pleasantly and stop wasting time. I’ve learned not to argue or disagree with their feelings. Many of you feel the same way.

If they say this is a bunch of bull. I usually say, “I know what you mean” and then simply say that early on when this law came out, I had to decide if I wanted to work unethically and illegally. Did I want to be dishonest and secretive or open and honest? I ultimately chose to work ethically, legally and honestly.

On bargain hunters, lower bids usually wins out, but I’ve found that I do get a small percentage when using this approach. Enough of a percent that it is worth the 30 seconds to say it.

Note: While I won’t argue or disagree with them, when they say it’s a bunch of bull … I never agree with them. I don’t start bad mouthing RRP or start telling them how many jobs I’ve lost because of this bull. Hopefully, I leave them thinking and with a little hesitation about using an illegal company.

If you have things you’ve learned, I would like to hear them. I’m always learning and changing my presentation. Hopefully, you will share.

Hopes this helps even a little.


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## aaron61 (Apr 29, 2007)

Any home built before 78.I assume lead and work accordingly.It's just easier.I'm not comfortable not including this in the original proposal.Once scraping & or sanding and priming is complete.The lead is out of the equation and we continue painting under normal job requirements.
I do not make a big deal about it during presentation but do mention it being a factor.If the HO accepts our proposal then I walk them through our steps.Again leaving out any scary stuff.
How do you categorize this as "unseen" if it's a pre 78 home Dean??
If it's pre 78 talk about it.if it's not,don't!


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## Dean CRCNA (Feb 4, 2010)

aaron61 said:


> Any home built before 78.I assume lead and work accordingly.It's just easier.I'm not comfortable not including this in the original proposal.Once scraping & or sanding and priming is complete.The lead is out of the equation and we continue painting under normal job requirements.
> I do not make a big deal about it during presentation but do mention it being a factor.If the HO accepts our proposal then I walk them through our steps.Again leaving out any scary stuff.
> How do you categorize this as "unseen" if it's a pre 78 home Dean??
> If it's pre 78 talk about it.if it's not,don't!


Fantastic if you can do it that way. You're just a great salesman.

With many of the painting contractors I work with and deal with, exterior painting comes with high compliance cost. It may add $800 to $1200 to a smaller size home.

Since it seems my folks aren't as good at selling the higher cost, they lose the jobs. Using a combination of what I mention, seems to help them a bunch. Especially in the area of testing. A lot of homeowners like the idea of saving $650 to $1050 if there home doesn't even have lead based paint.

On the "unseen" part. That may be more for remodel where you are replacing siding and don't know the condition under it. I've pulled a lot of siding off and found rotted 2 x 4s


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## aaron61 (Apr 29, 2007)

I understand "unforseen" I just feel that,given the circumstances,(knowing a homes age) makes it "foreseen"
The only way a home would absolutely qualify as "no lead" is if you test EVERY part & side or hire an independent to test it all for you. The cost for that would far out way assuming.IMHO. I don't think it's that I'm a better salesman,I know I have lost many homes because of it. I found that on a basic scrape & paint,no sanding,it will add at a minimum $500


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## Dean CRCNA (Feb 4, 2010)

aaron61 said:


> I understand "unforseen" I just feel that,given the circumstances,(knowing a homes age) makes it "foreseen"
> The only way a home would absolutely qualify as "no lead" is if you test EVERY part & side or hire an independent to test it all for you. The cost for that would far out way assuming.IMHO. I don't think it's that I'm a better salesman,I know I have lost many homes because of it. I found that on a basic scrape & paint,no sanding,it will add at a minimum $500


Maybe we should stick with unknown 

In my area, a pre-1978 is not a foreseen. 1950 to 1977 have only a 20% to 25% chance of having lead based paint on the exterior. Other areas would be different. As I mentioned, I charge $150 to inspect an exterior with my XRF, so for many in my neck of the woods ... it is worth it to check.

Just hand washing a home could cost $500 over here 

I know a guy in St. Louis that charges around the same, using his XRF. However, in St. Louis the odds are a lot higher of finding LBP. Even so, it may only be found only on the eaves.

Checking with LeadCheck would not make sense on exteriors. To many components to check and as you suggest ... not worth it compared to just assuming. Plus, LeadCheck may show the house is hot, while a XRF will show that it's not hot. Some liability issues there for the CR.

Seems you have a good system that works for you, so I sure wouldn't change anything.

The OP was written trying to cover all types of work from siding replacement to kitchen remodeling to ...


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## aaron61 (Apr 29, 2007)

Oh heck! That's all it would cost?? $150!!


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