We’re Going With The Lowest Bid
I hope this finds you well. In this issue of the Executive Report, I want to share my perspective on the bidding process both as a customer and as someone who works closely with contractors.
It was probably early in your sales career when a prospect first told you they were getting multiple bids. Every salesperson handles this differently– many provide a snarky response. Fortunately, you can respond in a way that increases sales and strengthens your relationship with the customer.
Below is scripting for a customer considering multiple bids.
I can appreciate that, and I’ve often done the same thing. What most people mean when they say, “I’m getting multiple bids” is “I’m going with the low bid, or maybe the middle bid”. Over the years, I’ve learned the problem with this mindset. The reality is, I could keep getting bids forever and always find lower ones. What I really want is the best value for my money – not a low price. Making decisions based only on price has always left me disappointed.
In the contracting business, we make profit by bringing value to the customer and pricing appropriately. The companies selling at low prices are trying to earn their profit by charging differently than the value they provide. They rely on:
- Inexperienced workers and poor workmanship
- Inferior product quality
- Confusion and a lack of organization and professionalism
- No proper licensing and insurance
- Not understanding the true costs of running a lasting business
In one way or another, contractors must cut corners to sell below market prices. This puts their customers at risk of poor workmanship, low-quality products, and no service for their future needs.
We’ve all heard horror stories of homeowners who got stung by bad contractors, and I’m not blaming the homeowners, but we can agree that choosing a contractor who cuts corners usually catches up to them.
While I appreciate your desire for multiple bids, I’ve learned as a consumer to focus on the value I’m getting from the job. It’s better to pay more for a job done well than pay the lowest price and need it done again. Focus on getting the value for what you pay, not the price of service.
This script can help your customer evaluate contractors on more than just price, but on their quality of service and the value they bring. Equipping customers to evaluate contractors correctly saves them time and drives down the number of contractors they see. (In these days of COVID-19, homeowners are thrilled to limit the number of contractors they invite into their homes.) If the homeowner insists on multiple bids or has already pursued multiple bids, take the next step with them.
Because you want to get multiple bids, I’d like to share this with you to help you make it through that process and avoid a low-bid contractor who cuts corners.
Then either email or give them a document like the following.
How To Avoid A Disappointing Contractor
When comparing proposals from multiple contractors, it’s important to seek out the one who offers the most value for your investment. Contractors who try to profit on a project by cutting corners will result in disappointment. However, value-driven contractors can propose logical ways to meet your budget. These contractors will work with you rather than deliver an inferior result while promising you a top-quality project.
Here are specific things to compare between contractors:
- Quality and Warranty of Product
- Quality and Warranty of Workmanship
- Financial Stability and Sustainability
- Length of Time in Business
- Proper Licensing and Insurance
- Customer Ratings and Reviews
We strive to provide the quality products and services we want for our own homes at the best prices available. Compare us with the list above, and feel free to reach out for more information.
If you want another resource to share with your customers, check out 44 Questions to Ask Your Roofing Contractor. It gives homeowners a great list of questions to consider.
By educating your customer and being open about the bidding process, you can help them appreciate the value offered by your company. This leads to more sales and happy customers. Please contact me anytime at 1-800-543-8938, ext. 201.
Todd Miller has spent his entire career in the metal building products manufacturing industry. He is president of Isaiah Industries, an organization recognized as one of the world’s leading metal roofing manufacturers. Todd is currently Vice President of the MRA (Metal Roofing Association) and a Past Chair of MCA (Metal Construction Association). Through his website, he strives to raise the bar on standards and practices to provide property owners with the best possible products for successful roofing projects.
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