how to be the 3rd bid instead of the 1st

[huggytree]

i find i am typically the first bid someone gets 90+% of the time...im not sure why

the neg's of the 1st bid....you deliver the price shock, it may be a month or more and they cant remember you much by the time they make their decision, the customer isnt educated yet, the project typically changes from the 1st bid to the 3rd...i could go on and on

the pos. of being the 3rd bid...your fresh in their mind, the project has evolved and your bidding exactly on what the final project is, they are educated, they know the the correct price range (no longer shocked), they have 2 other bids-many times they show you

when im the 3rd bid on a mid sized homeowner project i win 90+% of the time...when im the first bid im 50% or less....which i still think is a great %

for some reason im always the first bid...dont know if my phone book ad is that great (its small)...my reputation is that great...dunno....for some reason im always the first..and the homeowner is typically shocked at the price.

of that 50% i lose who knows what happens to them...through follow ups i find some use side job guys (1/2 price)....some possibly never do the project.

anyone else run into this? are you typically always the first bid? are you typically the 2nd or 3rd?...it should be equal 1/3,1/3,1/3 i would think...but its not for me

[Spider]

All my bidding was done to a fixed deadline - all bidders had to have their bids in by a set time and date, no late bids accepted, bids were all opened at the same time, and, unless there was an obvious error, the lowest bid got the job.

[huggytree]

typically im the first plumber they call and i always either give the estimate to them on the spot or mail it the next day...if just trying to figure out why they call me first...being first is not a good thing if they are getting 3+ estimates

i warn them about going with the low bidder.

[Spider]

If that's the case, wouldn't it be wise to also warn them about going with the highest bidder? You have often said you try to be the mid-priced bid so you want to gently eliminate the lowest and the highest, don't you?

I have never sought a plumbing bid for myself, but I have taken bids for other work on my home - roofing, siding, some interior work. In each case, some of the bids have been ridiculously high. I have been at an advantage in that much of my former career was preparing and analyzing competitive tenders for construction work, and knowing what the dollars translate into in terms of manhours and materials. The last time I asked for bids for any work, the highest price was more than double what it should have been.

[nealrm]

Huggytree - If you are the 1st person they call, you are in the drivers seat. They are talking to you before they talk to your competition, that is a great place to be. You get to set the tone and playing field. Now you just need to determine how to close the deal and stop them from going to others after you. If that is not possible, at least make sure that anyone they talk with afterward has to compete on your terms and not theirs. There is a reason they called you first - find out what it is and build on that.

[thx4yrtym]

Just because they call you first doesn't mean that you should ever give the first estimate. If you intend to quote it over the phone, fine, make an appointment to call them back within 48 hours and you will find out how you can help them. You are on another line now and will call back. Take their name and number and the best time to reach them. You know that you will lose some this way but your ahead in the long run.

If you are going to go out to give an estimate then make the appointment 3 days in the future. You still might be first but the odds are you won't be.

They will respect the fact that you are busy. If they don't, so what, they are not your type of prospect anyway.

Nothing worse that going through a great presentation and all the effort to bid a job only to be told that they are getting 4-6 other quotes and may get back to you after you spent your time educating them on what to ask your competition! We have both been there and done that.

Good luck.

[huggytree]

fredrick, when i did my roof i also got a bid which was double

when i did my roof and also built my garage i got bids in the mail after the job was complete...these guys take 3 weeks to get a bid back....i never want to be like that...im big on giving an imediate bid....it shows im organized and want their business.

i typically take 2-3 days to get an appointment for a bid..i like to wait until im in the area.

many times people dont intend to get a 2nd-6th bid...they intend to use me.....but when the bid is double what they expected there is no way they will sign on the spot.. people typically think things cost 1/2 of what they do...its rare to have someone say 'wow thats less than i thought'...it happens a few times a year, but usually they look at the price and get silent for a while....some say 'wow'....

i should warn people about the high priced guys too i suppose...because no one will pay double i figured there's no need to...if you pay double you are probably getting a better quality job...is it twice as good? no way...1/10th better...maybe

should i start asking every person why they called me 1st? i already ask how they heard about me.

[Spider]

I don't think it would hurt to ask why they called you first. It could provide useful information.

Another approach might be to ask them if they have a budget for the plumbing or for the job as a whole and what that budget is. Some may balk at telling you, thinking you will raise your price to meet that budget. However, if they so often have a budget of half of what it should be, you are not going to price under that, anyway.

The reason you need to know what their budget is, is so you can price according to their requirements. "For a job like this, Mr. Prospect, you could get a low quality job that won't last the year, or a high quality job that will not only last a long time, but will be trouble-free and will remain good-looking for years to come. I need to know your budget so that I can determine whether you want a high quality job or a low quality job or something in between. It also depends on how long you plan to stay in the house. No point in having top grade everything if you will be leaving in a couple of years."

What has this done?
1. It establishes that your price can be varied, but only if the project changes to make that possible.
2. It shows you know the difference between a good job and a poor one.
3. It demonstrates the value and benefits of a higher quality.
4. It indicates that you want to provide what is best for the prospect.
5. It tells the prospect that you will negotiate to arrive at the best solution for him.
6. And it shows the prospect that you have no desire to supply and have him pay for more than he needs.

It establishes trust and sets you up as the "go-to" guy to help him analyze other bids. And all this can best be done from the position of being the first bidder.

[Steve B]

"im big on giving an imediate bid....it shows im organized and want their business."

Well, if you keep doing this, you're pretty much guraranteed to be the first one in with the bid. You can't have it both ways - be the extremely fast to respond guy AND be the one that bids third. I'm guessing when they want a bid they might be calling all three plumbers within the same 1/2 hour. So, whether they call you first, second, or third isn't important - it's how fast you give them the bid that matters.

FWIW - I'm in the exact same position as you. I'm organized, usually answer my phone or return calls within hours, and I give quotes over the phone. None of my competitors are doing those things. I know I lose some jobs for the same reason you do, but I also gain some because they're impressed and don't feel like waiting for the other guys to call them back. I don't know if it's a net loss or not for me.

[billbenson]

All my bidding was done to a fixed deadline - all bidders had to have their bids in by a set time and date, no late bids accepted, bids were all opened at the same time, and, unless there was an obvious error, the lowest bid got the job.

I'm not sure about all bids being opened at the same time these days. I've never seen anythig to indicate that in recent years. Next time I quote a contractor I'll ask. I am part of large gov bids frequently.

Huggy, why not get in there first but with an intentional error of some sort. This allows you to rebid near the bid close date. Its kind of like the concept of trying to get in front of the customer as much as you can. It gives you an excuse to get in front of the customer again which is always good in sales.

[huggytree]

the impression i usually get from homeowners is that i am the ONLY bid they are getting until they see my $. Some are referrals and in that case id expect to be the only bid...

people typically have a budget of 1/2 of what it is...when they see my $ its a shocker...they have to get other bids to check to see if its legit.

Small job referrals = i get every one
medium/large job referrals = my ratio is much worse..maybe 50/50