Business Building: Sell More Than Low Price To Win More!

Words: George Hedley

Have you ever been the low bidder on a construction project and didn’t get the job? It doesn’t seem fair. Why did it happen? What can you do to avoid this happening again in the future? Bidding more and more jobs against too many low-priced competitors won’t guarantee a steady flow of profitable work in today’s tough economy. Successful contractors and subcontractors have learned that bidding is only one step in the sales cycle. Pro-active customer relationships and an organized and consistent steady marketing and sales program is required now more than ever. Look at your suppliers. They know how to market. They have up to date websites, brochures, and sales booths at trade shows. They have dedicated full-time professional salespeople assigned to your account. These salespeople call on you on a regular basis, take you to lunch, and make sure you’re getting what you want. They spend at least five to ten percent of their sales volume to ensure they keep a continuous flow of orders coming their way from customers.

Look at your company’s financial dedication to sales, marketing, and taking care of customers. When the construction business was booming, all you had to do was bid on enough jobs to grow and profit. That doesn’t cut it today as competition has increased with more qualified professional contractors in your area. Now it takes a commitment to business development and a thorough understanding of what your customer wants in every project. A marketing and sales program costs a small amount of money to implement. But without spending some money to make more money, you’ll have nothing to offer except lower and lower prices to win less contracts.

Most general contractors bid on several construction jobs monthly. For every project they bid on, they usually receive about 100 subcontractor bids for the 30 subcontractor trades involved. What amazes me is how most subcontractors rarely ever call to discuss the project requirements prior to bidding. And then never ask to meet with the decision maker to present their bids. How can only turning in prices give you a competitive advantage and improve your bid odds? When general contractors don’t hear from subcontractors before, during and after the bid date, they can only assume they’re too busy to follow-up, don’t really need or want the job, or don’t have anything valuable to offer except their price. Don’t you think meeting with customers will make a big difference? Face to face meetings will give you an opportunity to offer valuable alternatives, negotiate, build relationships, develop trust, and improve the desire to work together.

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 can offer, they can only evaluate your proposal based on your price clarified by your inclusions and exclusions. Your written bid looks very unconvincing stacked up against five or ten other bidders. The only differentiating factor is your price. Is that the only factor you want your company to be judged on? What about additional inclusions you can include, value-engineering, experience, certifications, manpower, supervision, equipment, schedule, quality, guarantee, training, and safety program. Don’t you think you could increase your chances of winning a contract if you had a meeting with your potential customers to discuss how you can make the job go better, faster, easier, or safer?

As a construction business coach, I have seen thousands of different construction companies in all parts of the country and have learned many ways to improve your bid odds. To get a copy of ‘Winning Ways To Win More Work!’ email GH@HardhatBizcoach.com. Take a look at what the top 10% best in class and profitable companies use to sell more than low price and win more work:

Pre-qualify the bid opportunity:
Never bid a job without meeting or knowing the decision maker first.
Qualify the customer and project before saying ‘yes.’
Always ask what’s the most important factor in awarding this contract.
Ask if this job is a bid or negotiated; when will the job start; who awards the contract; is the project funded yet; who else is bidding; etc.
Decide if this is a good fit for your company, do we have a chance of winning the contract, and is it worth the effort.

Standardized bid process to build rapport with customer:
Contact customer’s estimator or decision maker before working on bid to discuss scope and critical job requirements.
Call mid-bid to discuss issues, inclusions, exclusions, and conflicts in plans and specifications.
Submit bid.

Aggressive proactive bid follow-up program - show customer you want this job!
Determine who will be awarding contracts and when.
Get a face-to-face meeting with the decision maker.
In the meeting, offer ideas to improve your bid, do more, add more value, help customer, perform work faster, address conflicts on plans, offer value-engineering, adjust inclusions, increase or reduce scope, or adjust pricing.

Ask what it will take to be awarded the contract right now.
Get wet ink! - Ask for the contract and get it signed!
Ask again for the contract!

If you want to sell more than price and improve your profit margins, you’ve got to offer more than a low price on a piece of paper. You must do something to convince customers your company is the best choice. This must be done with a pro-active systematic approach to selling. Make it your priority to meet with your customers if you want to win their support and contracts. Waiting for the results is not a proactive way to win more work. Your bid is only the first step to winning a signed contract for the jobs you want.

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ABOUT THE AUTHOR
George Hedley CPBC is a certified professional construction business BIZCOACH, consultant, and popular speaker. He helps contractors build better businesses, grow, profit, develop leaders, improve estimating, field production, and get their companies to work. He is the best-selling author of “Get Your Construction Business To Always Make A Profit!” available on Amazon.com. To schedule a free introductory coaching session, get his monthly Hardhat Hedlines BIZ-TIPS e-newsletter, download his templates and tools, or watch his webinars or online video courses at Hardhat BIZSCHOOL online university for contractors, Visit www.HardhatBizcoach.com or e-mail GH@HardhatBizcoach.com.

George Hedley CPBC

HARDHAT BIZCOACH
Email: GH@HardhatBizcoach.com
website: www.hardhatbizcoach.com

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