Image by Usonian via FlickrI hear so many contractors and remodeling business owners say that they do not want to compete on price. My question is, “Why are you?”
Why is it so many contractors invest more time in running bids, instead of in presenting proposals? I was working with a client of mine Paul Klassen, owner of Pinnacle Renovations. Paul is perfecting a very professional process for the first meeting with his ideal client. It starts with a meeting in his showroom. This is a great way to bring your ideal customer to you and focus on their needs, build a relationship and get away from bidding. I never did like the word “bid.” What is a bid? Is this when a homeowner wants you to join a long list of competitors and just line up and deliver your best price and they chose the one they want based on price? I offer detailed proposals for your home investment, and if you are looking for a “bid,” my professional remodeling company may not be the right fit for you.
If you cannot separate yourself from your competition, your customers will do it for you. And how will they do that? They will do so by price and price alone. A good friend of mine, John Jantsch, author of Duct Tape Marketing, always says, “If you compete on price, someone else is always willing to go out of business before you are.” That’s what bidding does. Bidding gets you in a price competition and not where you want to be. Instead of competing on price, separate yourself from your competition and be unique. Many contractors don't realize they are in sales and need to continue to educate themselves and improve their skills in this area.
Always meet a potential client to review the final proposal. Do not mail or e-mail a proposal. If you “mail it in,” you will never see their reaction, answer their questions, and in return, may never see or hear from them again. In addition, it shows they are a bid and not important. It doesn’t speak to being special at ALL! Always ask for all the decision makers to be present. Don’t you value your time? Don’t you want them to value your time? “When can we meet to review our proposal for your home investment? I would like to request that I meet with both of you, so this way I can address any questions and thoroughly discuss this investment with both you. Would you expect any less? I owe that to you.” Take the time make the homeowners feel confident by presenting your company’s process for the entire relationship.
Do you pride yourself on communication? If you do, it starts here. After all, didn’t you just invest quite a bit of time on this? Don’t you owe it to yourself to have the best opportunity to get the project? Being successful is about doing all the little things properly. Don’t compete on price. Try to be unique and make your customer feel the difference between you and your competition. It will pay dividends, literally.
