Have you ever heard the old adage…”the more mud you throw at the wall the more that will stick.”? If you want to be busy just from a stance of keeping crews busy and increasing your aggravation, then this is the plan for you. It’s kind of like telling your clean-up batter to just swing at any pitch that looks good or your quarterback to just find somebody that looks open and throw it to him. Of course not, as the manager or the coach (i.e. owner, project manager or estimator) you are going to look at many different factors and call the play that you believe will give you the best chance to win. In today’s commercial HVAC industry we have to be better prepared and better planned.
Here are 3 tips we believe will help you not only win more bids but even more importantly become more profitable.
1. Only bid jobs you can do well and get a price you can make money on.
We all know that is easier said than done but with a little bit of reflection about your business and where you to go this can make a big difference and because of it you will:
a)Bid fewer jobs.
b) Increase the percentage of jobs you bid.
c) Increase your profit margins.
d) Improve the inefficiencies in the work you do in the field which, again increases profitability.
e) Be in better position to absorb any losses that happen to occur through estimating on in the field.
2. Before bidding a project ask yourself the following questions…
a) Do you have the experience to perform the job?
b) Are we adequately setup in the shop, in the field and in project management to perform the work?
c) Can my mechanics do the work?
d) Will the project fit into my existing project schedule?
e) Do we have adequate cash flow, credit and operational funds to meet the projects demands?
f) Is the project reasonably located geographically?
g) Is the project too big?
h) Can you accurately estimate the project?
i) Is the project a priority?
3. Avoid bidding projects that have the following:
a) Notoriously low bidders. These are usually the Johnny-come-lately’s who are out to make a name in the industry or companies who practice the afore-mentioned “mud on the wall” business philosophy. Don’t worry they will take care of themselves.
b) Too many bidders. You can usually find out how many players are involved through suppliers and/or subs. It’s easy to get caught up in the competition but most times it’s best to turn and focus on your plan.
c) Sometimes the odds of getting a job are remote. Whether because of relationships/friendships or past experiences you should be able to discern if you have a good chance of getting a project.
d) If you know of a competitor who specializes in a particular field and has a decided advantage then most times it’s best to steer clear.
Obviously every estimating and bidding process will present its own unique challenges and opportunities, hopefully these tips and the ones to follow (we still have eight more parts to do!) will help you find and win the projects you really want.
Atlas Estimates is available to work with your company to ensure you are submitting the best bid possible.
atlasestimates.com 1921 Brigadoone Ln. Florence, SC 29505