Selling construction services is simple!
Price every job 10 percent lower than your competitors and you should get at least 80 percent of the jobs you bid. Or you can implement a winning selling system that beats your competition on a regular basis. Your company organizational chart is also simple. To build and grow a profitable company, you only have to do two things well: get work and then build work. The primary responsibility of the owner or president of a small- to medium-size construction company is to be the chief salesperson accountable to get enough work at the price needed to pay all job costs, overhead expenses and make a fair profit that meets your goals.
The chief salesperson must love to sell, tell people how great their company performs, and be excited about the hundred plus reasons why they’re the right choice to be awarded contracts. This energy can’t be delegated if you want your company to grow. And therefore, the owner must dedicate at least one-third of their time to sales, meeting with potential and loyal customers to generate more business for their company and building customer relationships. And to make this happen, they need a good team in place that is 100 percent responsible to estimate the work and then get it done on time and under budget.
Successful salespeople do not have to be good at selling or cold calling if they have and use a systemized plan of attack they follow on a regular basis. Top salespeople have a lengthy list of potential and repeat customers who fit within their specific target market and project type they want to go after. This list is focused on customers who award contracts based on how you want to do business: negotiate, design-build, value engineering, service work, fast-track schedule or by being the low bidder.
Make those calls every day!
Winning salespeople know sales is about numbers. The more calls you make will generate more leads, which will generate more proposals and then more contracts. When you wait for the phone to ring hoping your excellent work and quality reputation will generate enough qualified opportunities, you’ll never get enough work to make any money.
Start by making a list of 20, 50, 100 or 500 qualified targets you think might need the services you offer and are willing to pay you a fair price. Rate them by the potential to win their work and how hard it would be to get work from them. Also rate the potential to develop relationships with them, which will generate repeat business and referrals.
Improve your odds of getting a sale!
To get a high return on your sales effort investment, you’ve got to increase your odds of success. For example, a better way to get on a general contractor’s short list of bidders would be to get to know the customer first and then ask for an opportunity to propose on one of their projects. Getting to know contractors is easy if you focus on where they spend their time. General contractors and builders often attend local association meetings, chamber of commerce events and charity golf tournaments.
As a subcontractor, getting involved in these types of organizations where potential customers are involved guarantees you’ll meet decision makers. When you know potential customers, you’ll then have an edge over your competitors and increase your odds of winning some work with them. This is a much better sales investment than cold calling 100 general contractors to try to get on their bid lists.
Another simple sales strategy is to ask your current and past customers to go to lunch or attend a sporting event with you. Make it your goal to build rapport, talk about personal and business issues, and tell them you are trying to grow and expand your company. Ask them how you can do more business with them and if they know anyone they could introduce you to who could use your services. Remember, don’t ask, don’t get. When you ask for help, people will gladly help those who they trust and enjoy doing business with.
Simple sales systems that work!
- Make sales your top priority everyday.
- Make five to 10 calls per day.
- Meet with at least one customer per day.
- Look and dress like a professional.
- Present like a pro with PowerPoint or video.
- Ask questions and listen more than you speak.
- Get to know your customer’s goals.
- Sell confidence and trust.
- Tell them what you’ll do for them.
- Offer more than the minimum.
- Offer more than your competitor.
- Tell them you want their business.
- Ask for the order.
- Send a thank-you note.
- Follow-up aggressively again.
Follow-up your bids if you want the job!
The key to winning more work than your competitor is to be more aggressive, make more calls, ask for the order and persistently follow-up. Most contractors submit their bids and never follow-up or ask for the order. The purpose for your bid is not to price the work, keep your estimator busy and hope you get a contract. When you wait for a customer to call you after you bid a job, guess what? They are talking to your competitor! If you are willing to do what you know you need to do to grow your business, it will happen. Rather than being afraid to make a cold call, go out in your community, get involved in groups where you can meet people in a friendly environment, and then get to know them well enough to ask for the opportunity to work with them and get a referral.
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George Hedley is a licensed professional business coach, popular professional speaker and author of “Get Your Business to Work!” available at his online bookstore. He works with contractors to build profitable growing companies. To request your free copy of “Profit 101 For Contractors,” sign up for his free monthly e-newsletter, hire Hedley to speak, be part of his ongoing BIZCOACH program, or take a class at Hardhat BIZSCHOOL online university, visit www.hardhatpresentations.com or email gh@hardhatpresentations.com.
