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Discussion Starter · #1 ·
I'm wondering, how do you guys approach the whole bidding process for jobs? How do you handle customers who "shop" your bids around? What general challenges do you have at the sale point, and how do you solve for them?

THANK YOU.
-Gabriel
 

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Kowboy
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Your problem is you're bidding, not selling. I've never understood how guys who bid can make any money as your price is set by your competition. I set my prices and sell my services. Your competitors may be going broke and don't know it. If you're under them, you're following down the hole.
 

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Provide the best and most complete price possible and provide a detailed scope of work. Then sell your company as to why they should use you instead of the competition. There will always be someone willing to do it cheaper and that is OK. Sell quality and attributes of the project and sell yourself and show them you know more about the project and process than the competition.
 

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The Ultimate Wire Hider
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To add to what's already been said, your appearance in both clothing and attitude makes a difference. You have to understand that the HO is watching you from the time you pull into the driveway. So if you sit there for 15 minutes prior to coming in, they take notice. If you walk up to the door with your head held down while dragging your feet, they will take notice. If you have your head buried in your phone at any point between the car and the front door, they will take notice.. and worst of all, they will take notice of how FAKE you are when you appear to be upbeat and excited for as long as you are in their presence.
 

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This space for lease
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People either eventually figure out that the lowest price often isn't the best deal, or they don't. You don't want the later for customers so it all works out.
 

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Custom
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Although it's counter-intuitive, it doesn't matter what the competition is charging...

If you have two different guys in the same industry, they have different levels of overhead... one may be happy making $30K/year, but the other wants to make $75K/yr.... right off the bat, your hourly rate is going to be much higher just to compensate for salary. One may not carry insurance and you do, same thing... you may have a shop, the other may work out of his garage, you may have employees (which have loaded costs) and he doesn't, etc...

There are way too many variables for you to base your pricing off someone else...

Charge what YOU need to charge... if you go into it trying to be the "cheapest and fastest", all you will find is you will fastest to lose money...

There is ALWAYS someone more expensive and cheaper in every market... instead ask yourself how the guy who charges more than you is doing it and are you leaving money on the table...
 

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Your problem is you're bidding, not selling. I've never understood how guys who bid can make any money as your price is set by your competition. I set my prices and sell my services. Your competitors may be going broke and don't know it. If you're under them, you're following down the hole.
Good advice.I always make sure the customer is comparing apples to apples and that I use quality materials Not what most buy at the big box store.Always bring samples where appropriate .
You have to educate the customer on techniques and materials sometimes if they are truly interested .If not,move on.
 

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if your bidding on price alone your in trouble

most of my jobs are referrals.....if my price is in the ball park i win the job..typically i am not bidding against anyone

when i DO bid against others i typically lose....im not the cheapest, nor do i want to be

i believe that 50%+ will always choose who they hire based on price alone...they dont see any differences(or dont want to see)...no matter how you explain things they never change...so i dont bother bidding

you need to screen out the bottom 50%......you can do it by your advertising or even your company name (example -- Platinum construction or Affordable construction----one name will discourage cheap customers and one attracts them)

i changed my phone book ad to say 'we do it right the first time'....my calls dropped to almost nothing, but the few who called became customers

when i went into business i used to win 1 out of 10 bids....i ran all over the place.....now my website pretty much screens out everyone...i win 50% + of cold calls and 95% of referrals....i rarely drive to someone's house to bid anymore,i try to have flat rate prices as much as possible....a cold caller calls to shop me and i can throw them a price in 2 minutes.....instead of taking 1 hour to drive their to bid

remember---cheap customers always expect the most....they are the worst customers and will leave you as soon as they find someone cheaper.......i stick with the upper middle class for my customer base.....their time is valuable....do it right and you will have a customer for life.

everything i do is about Quality.....Price is what it is.......i dont think anyone shops for Service, they expect it though....and when its delivered they become repeat customers.....i put Quality 1st, Service 2nd and Price 3rd......if Price is 1st for you= business with be a bumpy road for you with little reward
 
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