Masonry Magazine December 2010 Page. 36
BUSINESS BUILDING
Adam Ward Agency Dreamstime.com
By George Hedley
Sell More Than Price
Have you ever been low bidder and not gotten the job? It doesn't seem right. How did it happen? What can you do to avoid that in the future? Follow these proven suggestions to win more profitable work.
Bidding more and more jobs will not guarantee a steady flow of profitable work in today's tough, competitive economy. Successful building contractors and subcontractors have learned that bidding is only one step in the sales cycle. Pro-active customer relationships and an organized and consistent pro-active marketing and sales program are required now, more than ever.
Look at your suppliers. They know how to market. They have dedicated, full-time sales people assigned to your account. These sales people call on you on a regular basis, take you to lunch, and assure you are getting what you want. They spend at least 5 percent to 10 percent of their sales volume to insure they keep a continuous flow of orders coming their way.
Look at your financial dedication to sales, marketing and taking care of your customers. When the business was plentiful, all you had to do was bid enough jobs. That doesn't cut it today. Now, it takes a commitment to sales and marketing, and a thorough understanding of what your customer wants on every job. That costs more money. But without spending money to make money, you will have nothing to offer except lower and lower prices.
At my commercial construction company, we bid several 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, and never ask to 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 a low price. Or they don't think meeting with us will make a difference. They are wrong. Face-to-face sales builds relationships, trust and a desire to work together.
Customer Service
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Look at your financial dedication to sales, marketing and taking care of your customers.
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 can only evaluate your bid based on low price. Your written bid looks very unconvincing when stacked up against five or 10 other bidders. The only differentiating factors are the prices, inclusions and exclusions. Is that the only factor you want your company to be judged on? Don't you think you could do better if you had a strong enough relationship to get a meeting with your potential customers and discuss how you can make the job go better or faster?
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