Episode 468 – How to Bid a Job the RIGHT Way
Today we’re talking about how to bid a job the RIGHT way. The fact is, if you bid it too high you feel like you’re going to lose and never grow. But if you bid too low then you don’t make any money. The reality is that if you can get this right, this one thing makes all the difference! The profitability and viability of your business rides on you doing this correctly. Biding the right way get you a massive leg up and advantage over the competition, and enables you to grow your company and make more money. Let’s dive into some common false beliefs:
False Belief: If I lose a bid over price, I should lower my prices
If you lose a bid over price, first find out if it’s the RIGHT person for YOUR Cleaning Company and check if you got their pain. A lot of times when we lose a bid it’s because we get the wrong customer, so make sure you’re bidding to the right customer and understanding their pain.
False Belief: It’s ok to do “low margin jobs”
You have a finite amount of time and money, and you just can’t waste either on the wrong customers. You could literally end up writing a check for the privilege to do the job for them! Then if you fire them your margin will go down. The reality is every customer is costing you money. If they aren’t paying you then they are taking up time and money that you could be spending on good clients.
False Belief: I should bid based on their budget
Ideally you should find customers who have the right budget to meet your business goals. If you are not for profit, do what you want. But if you’re in the business to make money, you can’t have customers that aren’t making money. You should have customers that have the budget to help YOU meet YOUR goals. What life do you want to have? What time and money freedom do you need to have that life?
False Belief: If someone comes in at half of my bid, I bid too high
You honestly have NO IDEA if they are making money or will be in business in a month or even if they will do the job they committed to! If someone significantly underbids you, the reality is we don’t know what’s going on with their business that caused them to bid so much less.
False Belief: I should bid based on my “gut”
You should bid based on hard data that is based on your profit goals. Use your data to help you find customers and jobs that will move you towards your business goals. Remember, you can have a customer that increases your revenue BUT takes you further away from you goals. Find customers that have help you reach your goals.
False Belief: You have to bid every job
ONLY invest time and money on customers that will get you closer to your goal. You have so little time you can’t invest that precious resource on people that aren’t a good fit.
False Belief: It’s all about the cheapest price
Price does have bearing, but it’s not all about the cheapest price. Customers want someone that understands them and will solve their problem. Understand their pain and communicate it back to them and then they will assume you are the one to solve their problem. It’s FAR more important to show you understand their pain and not worry about trying to give them a cheap price. They will then take the cheapest price from the person they think can solve their problems.
False Belief: You don’t want to be the cheapest, but also not the most expensive
If you can’t be the cheapest (and you can’t), be the MOST expensive!! You’re never going to be the cheapest and you don’t want to be the cheapest. So since you can’t be the cheapest, you want to be the most expensive. Once you know how much to bid, that makes all the difference in the world. Your confidence in your bids will then help you close more sales!
Customers want someone who they know understands them. They need to believe that you will solve their problem. How you communicate that understanding to them before, during and after the bid is huge! Once you know how to bid the RIGHT way, and how to present your bid in the right way, all you need is the right leads and you can grow as fast as you want.
If you enjoyed this and would like to watch this video and others like it, click here. If you are still hungry to learn more and would like to watch our free informative webinar, head over to this link and find the most suitable time for you!