Low-ball bids might win you a few jobs, but they’re not great for your bottom line and underbidding isn’t a viable long-term strategy. For sustainable growth, invest in the more profitable approaches to bidding on a construction project.
Lay a Solid Foundation
Specialized expertise helps you stand out in a crowded market and attract your ideal customers. Your specialty might be high-end custom homes, eco-friendly materials, reliable design-build services or any other in-demand area of knowledge. Decide what your firm does best and build your reputation around it.
Stay up to date with developments in the construction industry. This includes both equipment and materials, as well as business management technology. You’ll be better able to compete with other firms and show your clients you can adapt and grow in order to deliver the best product possible.
Once you’re clear on your firm’s specialty and capabilities, take some time to create a marketing plan. Set specific goals for sales and profits, and define your market areas and the methods you’ll use to reach them.
Refine Your Focus
Much of your chance of success when bidding on a construction project depends on your reputation in the industry and with your prospective client. To strengthen your position while staying within your budget, focus on proven marketing techniques.
- Get involved in industry associations and community organizations such as the Chamber of Commerce, development programs, and social enterprises. Aim to connect with potential clients in person every week.
- Ask your current loyal clients to refer work to you. Provide a referral form that allows the client to fill you in on details beyond the referral’s name and number.
- Maintain a mailing list of your repeat clients and referral partners and mail something at least bi-monthly.
- Polish your presentation skills to come across better in your project interviews. Learn how to present the information your clients want in a clear and engaging manner. That includes knowing how to organize information, use visuals, and incorporate persuasive stories.
To get more tips for successfully bidding on a construction project, contact us at Construction Monitor.