|
Matt, that is right on with what I have experienced. Our prices are very fair to us and our customers. I think you can get the "in" without going bottom dollar, though, even at first. Our prices are fair to us and the customer. I can explain my numbers to any customer type to the point they fully understand what they will get, without revealing vital info. This has helped in a few instances.... One, with full understanding of what you are giving, they can compare your proposal to others. More importantly, it provides you the opportunity to show how thoroughly you have thought the project out, and may present questions for them to ask the competition.
For example, we recently priced a temporary rooftop irrigation system for our #1 commercial client. They balked at the price, and sought out other bids. When the other bids came in 3x's higher, they came to us for answers. Our price was slightly higher than our first verbal guesstimate, which had caused the initial doubt. It turns out that not only was our bid/ design more practical for the now, we considered the future uses as well. The second bidder is an irrigation specialist who over designed and inflated costs. Why, I don't know, but in my opinion they saw an opportunity to milk the profits.
This leads me to a second point...
Once you get in, don't get greedy. You will find that you can get your price. Too many guys keep sneaking in more and more to raise their profits, to see it all wash away in a flash. At times they may ask you to find ways to make your numbers leaner, but they are still coming to you for the work! Believe it or not, they will help you make it up on other projects.
A thought just popped in my head.... you might have more sucess getting an in on a lower level of the companies organization. Most project managers and other management level guys in larger G.C. companies are just too busy to deal with you. Get to know the office staff, and more importantly, the superintendents. When something comes up, most PM's call a super and ask " who can we call for...", or " who do you want to deal with for this....".
Most importantly, be persistant in your efforts.
|