If you want to grow your small contracting company into a successful, large firm, you need the tools to generate big profits. Learning how to increase the number of construction bids you acquire, using the best software to estimate project costs, and delivering an attractive bid are some ways to get ahead.
Boost Your Bid-Hit Ratio
This is the rate at which you bid or propose to do projects compared to the number of times you’re awarded the construction bid. Set a goal you want to reach and keep track of your progress.
To figure out how many jobs you want to bid on, what kinds of jobs to pursue, and which customers give you the highest percentage of your work, you will need to calculate your bid-hit ratio for those categories.
When you study your bid-hit ratio trends, you will discover certain customers hire you for more work than others do and also you perform better with specific types of jobs.
All this data will help you decide what jobs and customers you want to send bids to and when you should eliminate a customer or project type to increase the chances of project profit.
Use Estimating Software
In order to turn in a successful construction bid, you need to use the best software for construction estimating. Also consider hiring estimating firms for help.
Estimating software can decrease the speculation created when writing a construction bid. Another benefit is if you change anything in the job, it’s easy to alter a column rather than having to recreate the whole bid.
When calculating the raw cost, consider HVAC needs, subcontractors’ fees, costs of labor and materials, preventative care, and equipment.
Study the Market
Research what’s going on in the economy, government trends, and customers’ spending habits. Learn about the customers you’re trying to win and keep.
Before you increase your overhead costs, try out the marketplace you want to work in to ensure you can sell your services at the higher prices you will need to make a profit.
Customer Satisfaction Is Crucial
Ask your customers for feedback and try to resolve complaints from clients so you don’t lose business.
To keep customers happy, develop a relationship and pay attention to details. Ask them about their families and personal hobbies. Send handwritten thank-you notes.
When turning in a construction bid, present it in person. This way you can walk the potential customer through the itemized list and reduce the chance of miscommunication.
Build a Great Team
Find people with the right skills and personalities to help your company succeed. Provide the training they need before they start a job.
Communicate effectively and frequently with your team. Praise good work to increase your team’s motivation.
By doing your homework, using the smartest technology, and reaching out for help from the best in the business you can thrive as a contractor. EstimatorLocator.com can provide you with the tools, resources, and connections you need to boost your profits.