The Grey Area Of The Const. Business?

Tom M

There is always the question of doing the right job for the right money. There is always the question of generating sales by quality work, affordable prices or just plain gravy referrals.
So are you good at navigating the grey area? The old saying is its not what you know but who you know, isnt it? It is certainly true that a referral from a reputable source like a community leader or architect is worth far more than random calls.

When sales through contacts are made from these sources do you "kick back"? A source providing you with quality leads in low competition bids is like money in the bank. This is a grey area.

How many people care about your work quality? Dont they just go to the bottom line of your estimates first? They dont really know what they're looking at as long as it works and its affordable. Do you price per plan? or do you price what you think should have been in those plans? Is it less ethical to deliberately omit costs on a job for the sake of a competetive bidding against less proffessionals only to come back with extras once you have the job? They were not on the plans right? Again the grey area.

Honesty the best policy? Is just pricing the job the way you feel it should be done using the proper materials and techniques from only satisfied referred leads really keeping you from growing? Standing alone by these policys can have your bids always high. While it may be the business we all want to enforce isnt navigating the grey area how we really survive.
"If ******x says your the best you must be", how much and when do we start".
A couple of leads came across my desk that present a few special opportunities that can change my business and exposure. All it really took was the right connection to be in the position.

TigerFan

I lost many a job doing bids that way. Only to find out later that the "connected" company was bidding low as could be, but bidding strictly to the spec knowing they would CO the crap out of the job.

I've pretty much quit bidding those jobs - I'm not the best at forcing change orders. I bring it up in the sales presentation - basically a "this is the way it ought to be and you're gonna want it that way" type pitch.

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neolitic

I can....
A) Sleep at night
B) Not sleep at night

Pretty much all of my choices in life
are based on these two options.

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(Sorry....it seems there really are dumb questions)

Susan Betz

It depends on who we're dealing with. An individual homeowner or landowner, we'll talk straight about better quality. It's not just the price, but they're not in the construction business and generally need to be shown why we're more expensive.

A commercial job gets bid to spec, as long as no code is broken and fundamental quality isn't sacrificed (we won't put up garbage, even to hit a bid). If a GC or development company can't sort out the wheat from the chaff, that's their problem.

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Tom M

Not many people are good at change orders they can cause confusion and problems. Thats the way I would pitch it myself but how often does it help?

Tom M

I agree with your approach but would dissect what an architect puts out? Some people think your a contractor looking for more money.

woodmagman

Basing all the information that you have given is how a tradesman sells his work. There is no salemanship at all. Its just as you said "pricing a job" quality has nothing to do with it if it is not on the specification sheet, it is all about the price.
If you are about quality then sell the quality, if the customer does not agree then who ever refered them has misinformed them to who you are....quality comes at a price. Intelligent people know this.

Susan Betz

I'd dissect it for a homeowner. I wouldn't bother for a developer.

But given that we do fences that are rarely on the plans anyhow, it's generally a moot point.

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http://www.fencesofdistinction.com

HomeSealed

I try my best to make sure that I dont omit anything. Nobody would argue that the best leads are referrals, and it is easier to make a customer happy when they pay the original price they are quoted, no more. If that means my price isn't the lowest then so be it. Any customer who would pick me solely based on being the cheapest I could take or leave....That being said, my business is all retail. I don't deal with commercial or developers so that may be a different situation.

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