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Why Hurry Up and Wait ?
Make the bidding process work for you
Do you ever feel like the bidding process is nothing more than a “hurry up and wait” game? It rarely happens that our first meeting witha prospective client results in a signed contract or work order, especially when a sizable project and large investment is at stake. More often, you are invited to bid on a project and then asked to turn in the bid at a later date. Many times, your bid is turned in two, three or four weeks later, and sometimes even longer. This is a result of the natural process of obtaining trade contractor sub bids and material bids. You then must compile these, add them up and formulate your proposal for submission.
In the meantime, other bidders come along and tend to “muddy the waters”. They may give info rmation contrary to what you have given to your prospective client. The other bidders may make claims or promises that sound better than yours. At the very least, their presence is the most recent in the mind of the prospect. How can you manage the bidding process so that you maintain an ongoing presence with the prospect? Here are several ways to build the relationship with the prospect while their bid proposal is being prepared.
Draft Copy
The final set of contract specifications is rarely the first set presented to a prospective client. While the final drafts are being prepared, what would happen if you sent a “rough draft copy” to the prospect? Offering a set of preliminary specifications in advance of the final set can have many advantages. The client begins to discern that you are very interested in providing an accurate set of specifications. By presenting a “rough draft copy” of specifications, you begin to educate your prospect about the way that your company does business. It prepares the client for what they can look forward to in the final copy of specifications. A dialogue with the prospect is now opened as they study the “rough draft copy”. This dialogue can be extremely valuable. The prospect may reveal additional info rmation that would be critical to the price. They may have certain expectations of you, the contractor, that otherwise would not have been mentioned. You begin to learn more about the way your prospective client does business and also what past experiences they have had with other projects. All of these bits and pieces of info rmation begin to add up to something of value. You may get an edge with your pricing. You may find out what their budget is for the project or how they intend to finance the project. An atmosphere of trust begins to develop as the relationship grows. The prospect begins to reason that you are dealing with them as a true professional and the value of your service is worth the investment they will make.
Offer Options
The time you spend with your prospect in advance of your final bid submission can create additional profit opportunities. Often, a prospective client will disclose additional info rmation about upgrades or change orders that they would be willing to consider. You may offer additional services that the prospect had not originally thought about. You may come up with other creative ways to perform the actual project. You certainly can offer alternative estimates for a variety of projects related to the original bid. The fact that you even present these options to your prospect indicates that you, too, are value and cost conscious.
Here is a point about offering cost options. The options need to be set in front of a potential client to emphasize the value of what you will do for your customer. Options should be presented in a way that add greater value to your original proposal. After reviewing the options you have presented, your prospective client will have no other alternative than to award you the contract.
Your knowledge of the options alone will sometimes endorse you as the expert. These strategies will continue to build the value of your service in the mind of your prospect. Offering options to the original bid request may pique the interest of your prospect enough to allow you to extend the bid submission date in order to provide more accurate bid info rmation or better products. These are not delay tactics, rather they are value building strategies. The competition is fierce and you need something to set you apart. Why not take a little extra time and be more thorough than your competition? When pricing is very close, these concepts can be the difference in having a contract awarded or not.
Other Benefits
Using the interim time period during the bidding process wisely can benefit you in other ways. It affords you the opportunity to “multi-task”. That is, you can work on several bids simultaneously. Your pricing of the final specifications is more precise and there is less chance for error. Once the prospective client accepts the proposal, the time it takes to mobilize your trade contractors and vendors is greatly reduced. This will generate even better customer service.
Another very important aspect of this strategy is that it allows you to get to know your prospective customer better. A serious buyer will welcome any and all pre-bid communication. They want a successful project and will usually take the time in advance of the project to work out the questions and anxieties they may be experiencing.
The bottom line of these strategies is that it builds the relationship with the prospect and it gives you an ongoing presence with them. When the prospect feels that their relationship with you has been built due to your diligence and interest in the project, it may mean that you are awarded the contract without hesitation. It also means that the bidding process is working for you and that you don’t have to “hurry up and wait”.
Paul Montelongo is the author of 101 Power Strategies; Tools to Promote Yourself as the Contractor of Choice. Paul is a nationally recognized speaker and consultant to the construction industry. Register for a free E-mail newsletter to receive tips, strategies and concepts to help you grow your business and increase your profits. Paul has owned and operated his own multi-million dollar construction company for over 23 years.
