[uniscaper]

Why is it so hard to get into the market with general contractors? Has anyone figured out a way to reach new contractors and maintain a relationship with them and not have to completely go broke to do it.

So far our experience has been that we are bidding against the guy with a pick-up truck and a rake and they will undercut the snot out of us. So, we have had almost no luck with generals.

And the big time contractors seem to have their favorite company and don't even look at, or even ask for, different bids.

So, how do we do it?

Any thoughts?

[Dot Pecson]

Building trust takes a number of approaches.

First, you need to understand and address their concerns. Why do they prefer working with Cheapies-and-a-Rake? How does your company's service rise above those cheapies? What do they get that they need from you that they don't from cheapies?

Second, you need to prove to them that you deliver what you say you deliver. This can be like testimonials, photos, credentials, awards, etc. The more you can prove this to their satisfaction, the more trust you'll engender.

Third, you need a track record. Similar to #2, you have to demonstrate your superiority. Spell it out to them in words they respond to.

Fourth, you need to measure up to their expectations. When you do get a contract, over-deliver. Give them more than they bargained for.

Hope this helps,
Dot

[Pelican]

A word of caution on dealing with general contractors, you should demand all of Dot's recommendations from any prospective client as well. In my area general contractors are notorious for short changing their subs.

[prapoza]

Stay away from the guys that use the low ballers. Introduce yourself to the guys that do quality work and pay their subs. Check up on them, ask around, make sure they pay their bills and are fair to deal with first then send them a letter saying you'd love the opportunity to bid on some upcoming work and would love to show them what you can do "prove yourself" with some smaller jobs that the established (with them) contractors don't or won't do. Then go out and under promise and over deliver. If your good they'll consider you for the bigger stuff too.
Consider their point of view: if they are working with a good contractor already that is taking care of them why would they want to go anywhere else? You want to be that guy though so how do you do it? Take care of them. Under promise and over deliver.
I have found that most guys in the trades are terrible business people. They don't return phone calls promptly. They don't do what they said they's do. Ex: verbal price was this but we ran into some problems so surprise, Whamo! We'll be there next tuesday, two weeks later they show up without even a call to let people know. Start the job one day and leave the next to start another job and come back next week and put in a couple of days then off again. I could go on and on. If you are doing this stuff you'll never be the go to guy for anybody and never make any real money. If you have your act together you'll get the chance if you ask for it. I did great work for a long time and figured the world would beat a path to my door, it never happened. I had to go out and get it. Make some phone calls, go visit some job sites, offer to take some prospects to lunch/dinner. Talk in terms of how you can benefit your prospects/clients. Figure out what they want and then figure out how to deliver it and then let them know you know what they want and can deliver if given the opportunity, then show'em.
It's simple it just isn't easy!

[PaverDrew]

I have spent the last year wooing some of the big boys in the area, and have just made some headway. We joined our local AGC branch, and made a point to attend every event possible to network. We searched the plans room and called on everyone we had met when their company showed intent to bid on a project. Even if we had no intent to bid, we wanted them to know we were watching what was going on.
You might be surprised at the support your dealers and or product rep's can provide. Ours are always in contact with these same people to get their stuff spec'ed. It may take trust in you from others for them to consider you.

[NCSULandscaper]

i got into the builder scene by fixing a builders house here that was taken over by crabgrass and very thin.......the landscaper he was using was doing this place, he wasnt satisfied and i came in and did the work and get the results as promised, he sold this house and i did the isntall for the new house and also do the installs on all of the houses he builds

[Matt Kulp]

I was told by a large builder in my area that most builders have 3 subs they work with on regular basis, and if you are not one of the three you are there to just be seen. Meaning, they will use you to get numbers, and then pass the work to someone they are familiar with. He told me that the best way to get in with a good company is to find a common contact. Meaning, if your suppliers deal with them, try and set up a lunch, golf outing, etc... to get in front of them in a comfortable atmosphere. After you introduce yourself start off slow just by getting them some information on your company, and then, start smooshing.... You may have to offer your first project with them at a rock bottom price to show what you have to offer. But once you get the first job, knock there socks off with service and quality and you will get in. Once you get in, all you have to do is keep working to get to the #1 spot on the bid list by keeping the smooshing going. Once you start, you have to keep the relationship strong, or someone will come in and blindside you. You can't stop the process, or someone else will look more attractive.

[PaverDrew]

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.

[Matt Kulp]

PaverDrew,

I agree with what you say and I did not intend to come off as advising to lower your price for them all the time. I meant you may need to on the first job to show your value to the organization. It sounds like with your situation you stated above that you already had a relationship established with the GC, so I completely agree with charging what you need to do the project. But, if someone is trying to get in on the action, they may need to make a couple of sacrifices, maybe not. It all depends on the situation and the reputation your company has. I would not advise going into a bid with a rock bottom price to get the project, this may scare the GC. I would advise to negotiate, if necessary, to make sure you get the initial job offered to you. JMO

[PaverDrew]

Matt,
I did not take your comments that way at all. Overall, what I am trying to relay, is if you can afford to go a liitle longer and schmooze a liitle more, you may be able to avoid offering a rock bottom price for the first job.
On another note, I was contacted by anothr GC who I had submitted numbers to. In his questioning, "Who have you worked for in the last 12 months?" came up. I answered, and he knew one of the guys well from college, and that alone led to our consideration for the project. Be persistant and you will find your way in.

[Matt Kulp]

Originally Posted by PaverDrew

Matt,
Overall, what I am trying to relay, is if you can afford to go a liitle longer and schmooze a liitle more, you may be able to avoid offering a rock bottom price for the first job.

Good point.

[peteg]

This forum is the best one I have seen. I get answers without asking the questions.
You are a big help to small but growing guys like me. Thanks