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Old 11-25-2012, 08:43 PM   #1
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Default Great article on selling yourself, not your price.

Also on managing the process of remodeling. You can insert painting and decorating there, and it applies to anyone here.


Quote:
Competitive bidding is not good for business. Besides the time spent doing an estimate for a job you may not get, there is an additional element that most homeowners are not aware of. The following quote helps explain this:

“Competitive bids” are just that! If I shave the labor or materials to get your job, is that the house you really want? There are hundreds of ways to lower the price of a building which often lower the quality and workmanship also. The best drawings and specifications don’t protect you from poor trade practices.” The Well Built House by James Locke, Pg. 23
http://davidlupberger.com/i-dont-do-competitive-bids/
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Old 11-25-2012, 08:53 PM   #2
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Or you can just ask to see the lowest bid from the competition and then offer to beat it. Great way to save yourself the time of bidding it yourself.
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Old 11-25-2012, 08:56 PM   #3
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Or that, and then sub it out.
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Old 11-25-2012, 09:11 PM   #4
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Good article!
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Old 11-25-2012, 09:33 PM   #5
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Yup good reminders. Especially going into winter when painters typically start slashing their prices to the bone.
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Old 11-25-2012, 09:34 PM   #6
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That is all well and good, but most homeowners still are working on a budget or a set amount they expect to pay. The customers that author is talking about are dream customers but are very few and far between.

Another problem lies in the fact that the GC will sell the customer on the great services and such, but still demand a cheap price from subs. If you added up all the "fair prices" from top notch subs it would be way out of the realm of a customers budget.

Last edited by MikeCalifornia; 11-25-2012 at 09:37 PM..
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Old 11-25-2012, 09:44 PM   #7
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I suppose there is a market for everyone then Mike. I don't think dream customers are very few, you just have to market your services to them more effectively. I get a lot of sticker shock from a lot of my clients.

That is when I start explaining to them what the process is, and why it makes me a better contractor than the others. My service and ability to manage the customer make my worth greater than the other bids on that table.

If all they want is a cheap price then they aren't for me anyway. Its pretty much why I don't do much new construction anymore. Most of the time its a square foot price game where you are a commodity.
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Old 11-25-2012, 10:22 PM   #8
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Quote:
Originally Posted by MikeCalifornia View Post
That is all well and good, but most homeowners still are working on a budget or a set amount they expect to pay.
Most people have no idea what things cost. The idea of building dream customers starts with good marketing. (ie those that can afford to pay for their desires)
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