To Say Yes or to Say No?
The topic of Bidding Better is certainly one we’ve covered in the past. Check out here for our last post that discusses just this. We believe this issue is quite important and should be top of mind for anyone in the construction industry. I will preface that companies, do in fact, bid and win projects all the time. That is how this industry works of course. What I lay out below are some common issues vendors face in the bidding phase, and solutions to improve the process.
The story goes like this: Someone called you about a new building project and they would like you to bid. The scope of work is right in your wheelhouse, so you are interested. You decide to go out for a site visit to ‘put your eyes on it.’ The building representative greets you politely, and they walk you around so you can assess the project’s requirements. You take copious notes, take lots of pictures, and have a nice chat with the building team.
As your visit ends, you tell the property manager that they can expect a proposal next week. Then the moment you leave, you get a sinking feeling that you just wasted your whole morning. There is not a real reason as to why you feel this way, it is only your gut and the numerous other meetings that have ended this exact same way. You are right to assume; you are not going to win this project.
Ah… the fun of bidding on projects you will not win. And yet we keep on doing it. But why? There are many answers out there and I would imagined you heard them before. Perhaps, you did not qualify the project properly at the initial conversation, or you were not communicating effectively are some examples. But I would suggest another area to reflect and that is to look in the mirror. Yourself. It is human nature. You have spent countless hours trying to find new clients, making phone calls, and sending out email campaigns. Then finally a potential job falls in your lap. It is hard to say no after all the energy you put into building your business. So here are a couple of reasons you will not win this project, but also helpful ideas to improve your chances.
- You do not have a well-established relationship with the client.
Solution– Even though this is a competitive bidding scenario, relationships our everything, especially in the construction industry. It may take some time, but you need to build a rapport with these new potential project owners. Perhaps pick up the phone and re-introduce yourself. Also, what works for me, is sending interesting market data of where their building is located (i.e., current rental rates). Give them something useful as opposed to a sales pitch. You’ll get a lot further.
2.You have not properly qualified the project for your success
Solution- As I mentioned above, this can mean the difference between winning the project or wasting your time on another fruitless bid. Some of the questions to ask are: Is the project budgeted for this time? How many other bidders are there, and is there an incumbent? Evaluate their responses carefully and make an educated decision. It’s ok to say no if the project does not line up with your goals. There will be other opportunities, but in the meantime, try to stay connected with these new customers. You want to make sure they know you are still interested in working with their company.
In closing, here are a couple of ways to better analyze your future bidding opportunities. It may take some time but enhancing your relationships with clients is vital to your success. Couple this strategy with asking thoughtful sales questions when asked to bid, can certainly improve your chances of winning a bid. Or at the very least, this will save you a heck of amount of time by politely saying no.