Ever been low bid and didn’t get the job?
Follow these proven suggestions to win more profitable work.
Bidding lots of jobs will not guarantee a steady flow of profitable work in today’s fast paced construction business climate. Successful general contractors and subcontractors have learned that bidding is only one step in the sales cycle. Pro-active customer relationships and an organized and consistent marketing and sales program combined with a thorough understanding of what your customer wants on every job, will deliver an ongoing supply of great work.
At Hedley Construction & Management, general contractor, we bid several commercial construction jobs every month. For every job we bid, we usually receive about 100 subcontractor bids for the 30 sub-trades involved. What amazes me is that subcontractors rarely ever call to discuss the project requirements prior to bidding, or meet with us to present or review their bids. I know their experience can help us win the work and improve their odds when they offer us advice and ideas. When we don’t hear from our subcontractors, we can only assume they are too busy to help and don’t have anything valuable to offer, except price.
Do you sell more than price?
Customers demand and expect more than a cheap price today. And, most contractors and subcontractors are proud of their quality work, reputation, expertise and customer service. But, if your potential customer isn’t aware of the added value you offer, he or she can only evaluate your bid based on low price.
As a professional speaker to the construction industry, I see thousands of different construction companies in all parts of the country. Take a look at what the top 10% most profitable construction companies use to sell more than price:
1. Written marketing and sales plans
2. Marketing budgets from $10,000 minimum to $40,000 or higher
3. Pro-active customer relationship follow-up programs
4. Consistent monthly mailings to their target markets
5. Constant customer reminders of project niche expertise and specialties
6. Sales training for all estimators, project managers & sales people
7. A systematic referral networking system in place
8. Key managers are very active in their industry and community
9. They never bid a job without meeting the decision maker first
10. They always ask what is the most important factor in awarding the job
If you want to sell more than price while improving your profit margins, consider these marketing and sales ideas. Make your bid only one small part of your complete selling process.
George Hedley owns a $75 million construction and development company and Hardhat Presentations. He speaks to companies on building profitable businesses, leadership, and loyal customers. He holds 3-day in-depth “Profit-Builder Circles” open to construction company owners in an interactive roundtable format every 3 months. His “Profit-Builder System” includes proven tools to always make a profit, build equity, create wealth, win profitable jobs, motivate your people, and enjoy the benefits of owning a profitable company.