How to land more quotes

Wasting time and money on lost quotes is frustrating. Here are some winning tips…

When you lose out on a job you’ve quoted for, it can reinforce the (mistaken) opinion that best price wins. It’s a mistaken opinion because the results of BRANZ’s 2012 New Home Owner’s Satisfaction Survey showed that only 13% of respondents said lowest price was important when choosing a builder! Perhaps unsurprisingly, those who stated that the lowest price was an important feature had the lowest satisfaction scores in the majority of aspects. Over 75% of respondents selected quality/reputation as the most important feature when choosing a builder.

So, here are five ways to improve quoting success.

1. Deal with the decision-maker

“This looks really good. Thank you very much. I’ll just need to run it past my business partner/husband/wife/lawyer/uncle etc…. We’ll get back to you.” 

You’d probably be rich if you got a dollar every time you heard this. It’s frustrating (and rightly so), because you wasted hours preparing and presenting to the wrong people.

You need to negotiate with the actual decision-maker(s) for an opportunity to explain the details and negotiate last-minute changes. At the very least, you are saved the wait of hoping they will call.

Stories from builders suggest that the builder who is with the client when they are making their decision is most likely to win the job.

So, in your very first meeting, explain your quote process and identify who will be making the final decision. Set a close-off date for all other quotes and gain agreement to be with them when they are making their final decision (to ensure they are comparing apples with apples). Do this every time and you will improve your chances of securing the job.

2. Find the emotion

Maybe you’ve been trumped by a second-rate builder with a less than adequate quote. It happens! Your client may talk about better price, but the truth is they decided on emotion. People make a lot of decisions on emotion!

“You need to negotiate with the actual decision-maker(s) for an opportunity to explain the details and negotiate last minute changes

You don’t believe me? How hard did you have to persuade yourself to buy that 51” TV? Did you need it? No. Did you want it? Yes. Could you afford it? Maybe not. But did it feel good? Totally. Do you love watching sport on it? Absolutely. 

It’s no different for your client. They rarely buy a house or decide upon a renovation based on simple logic. They buy the feeling that comes from owning or modifying a home; the security (“I can stay as long as I like”); and the enjoyment (“I can have a home that really works for me”). It’s feelings that influence the buying decision and the builder who connects with these is more likely to get the job.

Focus on finding the emotion behind the logic and make sure you address it; then you’ll be dealing with the real buyer.

3. Be absolutely clear

How often do customers end up disappointed because of cost ‘blow outs’, especially with renovations. An estimate of $180k ends up at $250k and you get a bad name, when it was their house that was the problem; they had no idea about what was lurking behind the facade.

Teach your clients how a build (especially a renovation) works. Give as much detail as possible. Do a drive-by of previous jobs, so they have something to compare with. If possible, give a detailed quote for everything that can be quoted and, based on your experience, provide an estimate of the finished price. Be clear that this is an estimate only, based on what you can see.

Finally, establish a clear and detailed variation process, where you gain approval prior to starting. Ensure they know precisely what ‘extras’ they are paying for before you incur the cost.

4. Give options

Imagine if your local car dealer had just one car in the yard. Would you buy from him? Likely not. You’d go to a place where there was more choice.

So, in the early stages, give your customer options and ask questions about what they like. Provide good information so they can make an informed choice.

“If possible, give a detailed quote for everything that can be quoted and based on your experience, provide an estimate of the finished price

Eventually, as you get to more technical questions, they will ask for your opinion. This is highly important, as it means they are no longer treating you as just another builder but as a trusted advisor – one whose quote can be trusted because it covers all the bases.

5. Be eminently professional

It is not the better builder, but the person the client THINKS is the better builder, that wins the quote. 

Unless you have a show home, your client can’t sample before they purchase. They make their decision on what they see during the sales process.So let them see professionalism.

Get a nice presentation case for your documents. Use a nice pen and dress as your clients would expect someone to dress who is advising them on investing several hundred thousand dollars. 

Present your quotes in smart, new folders, or even get them printed and bound. Use your best promotional materials that answer the presale questions, ‘Who are you?’ and ‘Can I trust you?’ Gather together a sample of testimonials that match your client’s profile, so they can see you really do know what you’re doing.

Following the above tips should greatly improve your chances of landing more quotes.

About the Successful Builder

Graeme Owen, based in Auckland, is a builders’ business coach. Since 2006, he has helped builders get off the tools, make decent money, and free up time for family, fishing, and enjoying sports. Get his free ebook: 3 Reasons Builders Lose Money and How to Fix Them for High Profits at
http://TheSuccessfulBuilder.com.