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November 23rd, 2009, 06:09 PM
Don't Compete On Price!
By: Tim Nagle
I hear so many contractors and remodeling business owners say that they do not want to compete on price. My question is, “Why are you?”
Why is it so many contractors invest more time in running bids, instead of in presenting proposals? I was working with a client of mine Paul Klassen, owner of Pinnacle Renovations. Paul is perfecting a very professional process for the first meeting with his ideal client. It starts with a meeting in his showroom. This is a great way to bring your ideal customer to you and focus on their needs, build a relationship and get away from bidding. I never did like the word “bid.” What is a bid? Is this when a homeowner wants you to join a long list of competitors and just line up and deliver your best price and they chose the one they want based on price? I offer detailed proposals for your home investment, and if you are looking for a “bid,” my professional remodeling company may not be the right fit for you.
If you cannot separate yourself from your competition, your customers will do it for you. And how will they do that? They will do so by price and price alone. A good friend of mine, John Jantsch, author of Duct Tape Marketing, always says, “If you compete on price, someone else is always willing to go out of business before you are.” That’s what bidding does. Bidding gets you in a price competition and not where you want to be. Instead of competing on price, separate yourself from your competition and be unique. Many contractors don't realize they are in sales and need to continue to educate themselves and improve their skills in this area.
Read the full Article here at Remodeling Online: http://www.remodeling.hw.net/blogs/postdetails.aspx?BlogId=timnagle&PostId=90511
By: Tim Nagle
I hear so many contractors and remodeling business owners say that they do not want to compete on price. My question is, “Why are you?”
Why is it so many contractors invest more time in running bids, instead of in presenting proposals? I was working with a client of mine Paul Klassen, owner of Pinnacle Renovations. Paul is perfecting a very professional process for the first meeting with his ideal client. It starts with a meeting in his showroom. This is a great way to bring your ideal customer to you and focus on their needs, build a relationship and get away from bidding. I never did like the word “bid.” What is a bid? Is this when a homeowner wants you to join a long list of competitors and just line up and deliver your best price and they chose the one they want based on price? I offer detailed proposals for your home investment, and if you are looking for a “bid,” my professional remodeling company may not be the right fit for you.
If you cannot separate yourself from your competition, your customers will do it for you. And how will they do that? They will do so by price and price alone. A good friend of mine, John Jantsch, author of Duct Tape Marketing, always says, “If you compete on price, someone else is always willing to go out of business before you are.” That’s what bidding does. Bidding gets you in a price competition and not where you want to be. Instead of competing on price, separate yourself from your competition and be unique. Many contractors don't realize they are in sales and need to continue to educate themselves and improve their skills in this area.
Read the full Article here at Remodeling Online: http://www.remodeling.hw.net/blogs/postdetails.aspx?BlogId=timnagle&PostId=90511