Work Smart to remain competitive
20/05/2011 17:08:56
Article appeared in Master Builder May 2011
Too many quotes yielding too little return?
In the present economic climate it seems in order to keep their businesses going, builders are getting as many estimates out as possible hoping that the law of averages will pull in a steady number of new jobs.
But running around quoting for every potential piece of business can not only be counter-productive but used up an inordinate amount of time. There is also evidence that many builders are lowering their prices to try and win the work, so margins that are already tight are being squeezed even more.
It's something Anthony Botibol, Marketing Manager at HBXL is fully aware and believes that builders should assess how they go about quoting and winning new work.
He said: “By lowering their prices builders are going to make a similar profit or even little or no profit, they may also have to go back with revisions half way through the job. I'm not saying that getting more quotes out there is a bad idea however the quality of the quote is vital.
"That's why we advocate using our EstimatorXpress software which not only produces a professionally laid out quote but can do it very quickly. And because it lists precisely where all the money is going, users can explain to their customers exactly why a job costs what it does and do not have to reduce their prices.
"One of our users told me that on one job he was £20,000 more expensive than his competitors, and although he didn't lower his price because he knew if he did, he would be making a loss. But because he could justify the cost he still won the contract.
"Quoting a proper price ensures builders make a decent profit on one job rather than making the same amount of profit on three jobs!"
ENGLAND FINEST
For FMB member and EstimatorXpress user, Nick Orchard, the policy of producing quality estimates is exactly how he approaches quoting for new business. Nick launched his business, England's Finest, in June 2008 and proof that his philosophy works is demonstrated in numerous cases when he has quoted for a job knowing that the price he has given is more than some of the other quotes presented to the customer. But because of the quality of his estimate meant he won the contract.
Nick said: "It's pointless spending huge amounts of time preparing and producing estimates in the hope that they will bring in the business. The only way to become more competitive is to use this sort of estimating software. "It not only speeds up the whole process but enables me to produce quality quotes, which, more often than not, wins the work. Being able to demonstrate to the customer exactly where their money is being spent goes a long way to securing their trust and ultimately their business.
"Because of the software I can also produce more quotes more quickly and when you combine that speed with the quality makes for a very competitive package."
Anthony added: "Nick is an excellent example of someone who used his time well. Not only can he turn out a quote very quickly, but because he uses EstimatorXpress meant it is completely accurate.
"If this use of IT that has made Nick highly competitive in his area and is why he's doing so well and able to take on more staff - we wish him well."
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