Every contractor, subcontractor, builder, service company or engineer I’ve ever met boasts how their quality and service is superior to the competition. But after you present your proposal and the excitement settles down, what really matters? PRICE! Thinking you’re better is one thing, but getting paid more than your competition for better quality is another. Ask yourself this question: Will customers pay our company more than competitors for the same work?
To get paid more, you must offer more. Most companies want to sell quality over price, but really don’t offer any more service than their competitors. Getting awarded a construction contract is normally based on bidding lump sum for the minimum required per the project specifications, plans and customer’s project requirements. When preparing a proposal, estimate or bid, most companies never consider including more than the minimum required.
Imagine living in a world where customers, clients, project owners, developers, builders and homeowners actually pay more for quality work and excellent service. I took a survey while speaking at a Construction Owners Association of America (COAA) convention. During my presentation, I asked attendees to tell me how much quality and service matters when selecting architects, engineers, contractors, subcontractors, suppliers or maintenance companies.
Ninety-five percent of these project owners surveyed stated quality and service matters when selecting their service providers, suppliers, and contractors and 89 percent said they will pay more for better quality and service!
Do you sell more than price?
Most general contractors, subcontractors and suppliers are proud of their quality of work, reputation and personal service. But today’s financial demands, project complexities and tight schedules require project owners and developers to often look for more than low bid. However, if they aren’t aware of the added value or extra quality you offer, the buyer has no choice but to evaluate and select based on price. To sell quality over price, you must determine specifically what your customer wants on every project you propose on. Focus on the important issues that make a difference by asking before you bid, and then address it in full detail in your proposal.
Get in Front of Your Customer!
If your company is perceived as a good professional company, which provides exceptional quality and on-time work, it will easily get on lots of bid lists. And when you are the lowest bidder, you should get lots of work to build. Success is determined by your reputation and then more importantly price.
But most business is people business. Companies that sell trusted relationships versus sticks and stones, make lots of money. To sell quality and service instead of low price, you must develop trust with customers. The only way to create trusted loyal relationships is to spend face-to-face time with customers. Get to know customers personally by taking them to a meal, industry meetings, or ballgames on a regular basis. Like with friends, building trust takes lots of quality time.
Offer More Than Low Price!
As a builder, we bid and price out several jobs every month. For each project, we receive about 100 subcontractor bids for the 30 sub-trades usually required. On average, less than 10 percent of these bidders ever call us to present their bid, review their proposal, discuss their bid or even to meet with us for any reason. When we don’t hear from subcontractors or suppliers, we assume they don’t have more to offer than a low price based on the minimum required per plans and specifications.
Every project has different needs. Sometimes price is the only differentiating factor, but how will you know what really matters to your customer without asking before you bid? On most projects price is not the only determining factor. On many projects, contractors are weighed heavily based on specific factors like: schedule, quality, safety, professionalism, technical skills, cleanliness, financial capacity, manpower or responsiveness. But when all we get is a faxed or handwritten bid proposal, we don’t know if they intend to help us meet our project goals.
Include solutions to these questions in your proposal and presentation. Always try to deliver your bid in person, and present it in a visual and convincing way so your customer will see and believe your company has the answers to their problems. Use photos of the project site and similar projects you have worked on that depict the similar challenges and concerns. Also use bar charts, samples, a proposed schedule, material brochures, flip charts with lists or project photos. The better you look, the better you’ll look.
Be a Squeaky Wheel!
Estimators are more than price givers. They are in the sales business and need to spend lots of time with customers. Be in the right place at the right time by being in your customer’s office or home every week during the bidding process to show you want the job more than your competitor does. Stop by, ask lots of questions, offer ideas on how to make the project better, provide alternative suggestions, and look for ways to help your customers. After the bid presentation, follow up aggressively in person. Estimating and preparing the bid is only half the work. To sell more than low price, you must do more than fax in your bid. Bids don’t sell, people do.
George Hedley works with contractors to build profitable growing companies. He is a professional business coach, popular speaker and bestselling author of “Get Your Business To Work!,” available online at www.hardhatpresentations. com. To sign-up for his free e-newsletter, join his next webinar, be part of a BIZCOACH program, or get a discount coupon for online classes at www.hardhatbizschool.com, e-mail GH@hardhatpresentations.com.
