More often than not, you will be going against multiple competitors, all trying to deliver the lowest quote they can. To make matters worse, sometimes a newer business willing to lose money on a job to get a foot in the door will be bidding. But if you think differently than your competition, one strategy will almost always guarantee a win every time.
Go Beyond Price
In most bidding situations, your competitors will only focus on price. By focusing on added services or products -– in addition to price -- you can offer your customer more value, and thus a better alternative.
- Add extra services. Say you run a business that cleans carpets and are bidding for a five-year contract on all the rooms in a hotel chain. Once your have figured out your best price, while still making a reasonable profit, consider a bonus. If the contract calls for a full carpet cleaning twice a year, offer one free touch-up per room, based on availability. This is a free added value for your customer. The chain now knows that if a guest spills coffee in a room, you will take care of it at no charge. You put the "based on availability" into the bid so that you can schedule these touch-ups when you are in the area on other jobs or when your crew has downtime, minimizing the impact on your bottom line.
- Build in a surplus to your bid. For example, If your customer is asking for 12 dozen silk screen T-shirts to be sold at an upcoming event, throw in an extra dozen for free.This is particularly powerful because the cost to produce extra product as a manufacturer is minimal, but it will translate into a much higher profit for your customer.
- Focus on time. Can you deliver a project or product in a shorter time than your competitors? If you are more efficient or have the flexibility to prioritize one customer's project over others, use those advantages in your bid.
- Emphasize quality. Can you do better quality work or products than your competition for the same price?
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