Landing the wrong project can destroy a good business.
- Not all work is equal
- Different project types, sizes, locations, etc.
- Different Owners, clients, managers, financing, etc.
- Different requirements placed on the contractors
- Determine what is best for you
- Start with your vision – what types of projects support it
- How do you want your business to run
- What are the skill sets you have now and in the future
- Use the Go / No-Go process
- Create your ideal project and create a score
- Score each potential project should be scored and compared to the ideal
- Use this scoring to determine which projects / clients you should chase
- Don’t be afraid to walk away
Shift your focus to clients that care more about value than price.
- The low price market is a tough racket
- Unless you are set up for it move away
- Find a better market – look for best value clients
- Best value clients select the contractor based on more than price alone
- They look at qualifications, experience, services, reputation, etc.
- Change your sales approach
- Must contractors use an inbound marketing system
- Put listing in directories and wait for calls
- Shift to more outbound marketing
- Outbound marketing is about strategic efforts to sell your brand
- Reaching out to your targeted customers
- Market your message and educate your clients
- Tell them why they should choose you
- Qualify your leads
- Interview all your potential clients to determine what matters to them
- If they don’t fit you then tell them
- Profile your potential market and target them
- Continuously refine the process to get better leads
Dropping prices to win over a new client can be a good strategy.
- Buying a job is a common strategy
- We target a client and give them a low price in order to start a relationship
- We get in with them in hopes of future work at our normal pricing
- Does it really work?
- My successes and failures
- A developer – we did a job at their typical pricing in hopes of showing them they should pay us more – it worked
- An industrial plant – took a low price job in order to get in and later found that everything was based on lowest price regardless of value provided
- A city – took a project to get in and put the wrong team in place, didn’t provide value – never got shortlisted again
- This strategy can work but takes some careful research and understanding
- Know the customer – are they right for you?
- Know the projects – does value matter over price?
- Make sure you have value to add – if not they will never pay more for your services on the next project
- This is the key part – you must be bale to prove the values you offer in order to get the pricing you want in the future
Is that potential client really the right one for you?
- We have customers we target – are they the right ones
- Different client types have different requirements
- Home Owners differ from Commercial Owners / Government is different than Industrial
- We think we want to work for a certain client but make sure you really do
- Research your potential customers
- What are their expectations?
- What will it take to be successful working for them?
- What skill sets are required?
- Compare to your capabilities
- Do you have the right skill sets?
- Does the customer fit your culture
- The culture can be completely different from Commercial to Government Hard Bid
- Is this the right client for you?
Taking on too much work can strain our resources and hurt all of our projects.
To grow your business, you need someone dedicated to sales and business development.
Are your employees brand ambassadors of customer turn-offs?
“Partner with suppliers and manufacturers to extend your marketing exposure.”
Today we discuss partnering with suppliers to develop some added value marketing plans.
“Set yourself apart from other residential/light commercial contractors by providing your customers with lien waivers.”
Today we talk about using an important business process to help set yourself apart from your competition. Providing lien waivers to your customers when they don’t ask for them.
“Offering a free consultation is a great way to get in front of potential clients.”
Today we talk about setting a free consultation program to engage with potential customers.