Masonry Magazine August 1997 Page. 20
competition are:
✔ Know your clients/potential clients and their needs. Understand what is important to them and what they are willing to pay for (or otherwise). To find this out-ask them -survey them either directly with a formal survey or through informed questions.
✔ Provide a quality product/service on time and on budget at an appropriate cost.
Pricing
This is an area that the typical mason contractor controls on both an ongoing and a project-by-project basis. Overall, the pricing strategy depends on the:
Selected market segment/market niche
The contractor makes the decision as to the quality of materials he/she will use, the quality and number of the personnel, the extent to which the company will invest in new equipment and procedures, etc., and these determine the market segment on which the business focuses.
Firm's position in the market
If the contractor is well-established in the market with a strong reputation then it clearly has upside flexibility when it comes to pricing its services.
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On a project-by-project basis, the contractor has far more flexibility in terms of differentiating itself and the company's strategy will depend on:
The nature of the decision process and the expected level of competition
If it is a straight bid situation with the contract awarded to the lowest bidder then the only way the contractor can legally differentiate itself is through its willingness to reduce its costs and/or profit margins. If, on the other hand, bidding is by invitation then how it prices its services will depend on how it evaluates the possible strategies of the competitors and the probability that it will be awarded the project.
This leads to two more rules when it comes to standing out from the competition:
✔Make sure that your pricing is consistent with the product/service you are offering and with the market segment you are targeting.
Have a clear understanding of what specifically you are trying to achieve when pricing each specific project.
Promotion
This is probably the most difficult area for a mason contractor. Why? Because there are so many options... and it is so easy to throw money away on worthless activities.
For example, a contractor can spend thousands of dollars on advertising in trade publications or the Business to-Business Yellow Pages. However, the vast majority of managers do not see this as particularly cost effective unless the company had something unique to offer. High quality brochures and mailers can also be expensive - especially since they are normally "round filed" by the recipient.
So, what can the typical contractor do to stand out from its competition? Some of the best and most cost effective suggestions are the obvious and relatively simple. For example:
✔Place increased emphasis on the final stages of a project Why? Because so many contractors emphasize those stages when the bulk of the work is done and ignore the last few details (as they prepare to move on to the next project). The client, however, is primarily concerned with the final outcome, and this is where client satisfaction can be maximized. Focus on the final punch lists with the goal of leaving the client totally satisfied with your performance.
Follow-up on the project Have somebody contact the client a couple of weeks after the end of the project. Ask questions such as: Were you satisfied? Are you having any problems? And, most importantly, who might be interested in having some work done?
✔ Focus on keeping in touch with your existing customers Don't forget that it is far easier to sell yourself to existing satisfied clients than new clients so maintain regular contact with them. You don't need a high priced newsletter. A phone call or a short letter is all that is needed just to remind them that you are still available to service their needs.
✔Generate publicity ... it's free! If you do work for a company or an organization which has a newsletter, write a short piece on what was done. If the project would have wider interest, send something to the local newspaper. Anything that is published is free promotion for your business. Not only does this generate local visibility but it add to your materials when selling a new client.
This leads to the two final rules for standing out from your competition:
✔Make sure your existing clients are happy... they are your best source of both new business and referrals.
✔ Avoid, wherever possible, expensive forms of promotion. Emphasize low-cost, in-house options.
Conclusion
Standing out above the competition is not easy. It is something you have to work at and it takes time. Unfortunately, it is very easy to fall into the trap of wasting a lot of money on unproductive activities when the answer most often lies in your own organization. Put yourself in your client's shoes and ask yourself: what does the client need? And what can we do that other firms fail to do!!