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Discussion Starter · #1 ·
Instead of paying for leads, what if you were able to pay to see the estimates. Now don't jump to any conclusions here, think about it for a moment. A client calls you then ask to submit an estimate for a service that is needed.. You or your employees (for those that still have one) drive to the location, but on the way stop and pay for the gas. Then you arrive and spend the next hour or so going over all the details at hand. Once you explain the superior services that you offer (That no one else does) then you submit your quote. They look at it and say thank you for your time and they will be in touch. The next week goes by then two, now you call again to see if they have decided to move forward. They then proceed to let you know they moved forward with another contractor that was able to offer the same service at a lesser price.

So where are the HOLES here? First you were outbid and had no idea, second; not all consumers take into fact that you carry a better Insurance or that you have been in Business 100 years, third; they do not take the time to call back the service providers to let them know that the job has been awarded, (why is that) because estimates are free so they have no value, fourth; If they do let you know where you stand, usually this happens when you are a little high on the quote but they like you, so you come back with the line the seldom works (I do not think it is possible to do the job the way you want it done for that price) or what ever line to keep face due to the fact it is very hard to lower your price once you have committed...

This brings me back to the question, what would you pay to see the estimates? Think about your time, your gas, your payroll, and your overhead. You see the price is 70% of the game, when was the last time the highest quote was awarded. With government bids it's always the lowest bid that wins.. 100% of the time. Residential not always they may pay a little more for better service, its tuff though in today's market.

What if the roles were reversed, once you realize you are providing an estimate along with others ask the client to post the project online. There is a website that allows all bids to be posted online and viewed by the service providers. If you are out bid then you have the option to lower your bid. Only your lowest bid is shown and they still have the option to award to whom ever they choose. Now you are able to monitor your bids more effectively.

Some will say this may drive price down, this may not be all true. With Government procurement bids they openly display all bids once the project has been awarded. There were more times than not when we left thousands on the table but won the job.. Now we refer all clients and have increased our profits in a downward market. How is this, our profile page is in their face the entire time they are deciding whom to award the project too, and we are able to keep our margins up with the ability to know where we stand before it’s to late. It is by far the best $5 you can ever invest.

“If you always do what you’ve always done, you’ll always have what you already had”

John Brown,
BenHur Construction
 

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You lost me. I wouldn't pay a dime to see anybody else's bids, I could careless what they bid, what does it matter? Because everybody else is bidding $50,000 on a $60,000 job, I would do what? Bid $49,000? :no:


It sounds like this is something you have experience at using.

Explain to me how this system won you a job at a higher profit please. Thanks.
 

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DavidC
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John, I eventually figured out in your last thread that you deal mostly with government and commercial bidding where, apparently the main consideration is the bottom line price. On the other hand my business is involved almost exclusively in the residential remodeling market. Apples and oranges.

Are you implying that this plan would work in the residential market?

Good Luck
Dave
 

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When I was competitively bidding I encouraged clients to write a spec sheet & scope of work so everybody was bidding "apples". With out a spec sheet it's a crap shoot & I elected not to bid. Someone has a line on her of "I never lost money on a job I didn't get". Very True.:thumbsup:
 

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Discussion Starter · #6 ·
John, I eventually figured out in your last thread that you deal mostly with government and commercial bidding where, apparently the main consideration is the bottom line price. On the other hand my business is involved almost exclusively in the residential remodeling market. Apples and oranges.

Are you implying that this plan would work in the residential market?

Good Luck
Dave
I believe it would, first you have to do your homework. If it is a referral by a previous client then no, but if it is a lead that you will be competing for their business then why not put the ball in your court.
 

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John, I eventually figured out in your last thread that you deal mostly with government and commercial bidding where, apparently the main consideration is the bottom line price. On the other hand my business is involved almost exclusively in the residential remodeling market. Apples and oranges.

Are you implying that this plan would work in the residential market?

Good Luck
Dave
I wasn't going to comment at first until I assumed he is referring to residential remodeling since he mentioned 'consumers' and 'free estimates' in this posting. But its obvious from what he wrote he has a lot of commercial, governement and munipality work experience influencing his residetial side of the business outlook.
 

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Discussion Starter · #8 ·
You lost me. I wouldn't pay a dime to see anybody else's bids, I could careless what they bid, what does it matter? Because everybody else is bidding $50,000 on a $60,000 job, I would do what? Bid $49,000? :no:


It sounds like this is something you have experience at using.

Explain to me how this system won you a job at a higher profit please. Thanks.
We do use the website often, An (Example) would be an Airport that we just won, we went up against 4 other companies and new where we wanted to be before we submitted our first bid. We were willing to take on the project for 3.2 million. The bids came in high at 4.7 million and dropped to 3.65 million. Our last bid was $3,653,000 so being that we were willing to go as low as 3.2 million and more than likely would have, we increased our profits by more than $450,000.. :notworthy
 

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That's great, however as said, you seemed to be referring to residential remodeling with use of the terms 'consumers' and free estimates, both associated with homeowners/residential. But now your example is about a commercial project.

If this subject is about commercial bidding, then I'll keep my mouth shut cause its not my area of expertese.
 

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Welcome to the wonderful world of contracting! :thumbsup:
 

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DavidC
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I believe it would, first you have to do your homework. If it is a referral by a previous client then no, but if it is a lead that you will be competing for their business then why not put the ball in your court.
Well your example of an airport would be a rare residential job that I would not expect to "bid" normally. My best guess is that John Travolta already has a favorite contractor.

We compete with other contractors for business on a regular basis. Many of our sales will have the client accepting by saying, "you were a little higher but...." I see no use for a website that would erode the gains we have made in this area.

You can counteract the urge to compete on price by first doing your homework. Lowest price is seldom the deciding factor in a home improvement sale. Fair pricing is very important to both parties. Bidding to be the lowest price is not selling, it is buying damaged goods.

Your website thing may be a good avenue for commercial and gov't. work, but as Mike said, it's not my area. In fact, I won't even consider quoting grant work anymore.

Good Luck
Dave
 

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If lowest price is the only reason people buy we would all be driving econo-box cars.
Sell myself and a good job and be professional. If they can not afford me then maybe I do not want them for a customer.
I built a house a couple of years ago that I knew would be a PITA and that I knew I would probably loose money on. Guess what I was right!!!! Lol

There are however other reasons I built this house.
 
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