What Is Holding You Back From Winning More Bids? It Might Be Your Pricing
5 MIN. READ
You have the team, the skills and the strategy, but the bid wins are not falling your way. You may begin to second guess your proposals and your entire methodology since you are not getting the amount of work that you require to stay competitive. It may be time to reassess your strategy and retool your approach. More specifically, you may need to retool your pricing. Discover how pricing can be the difference-maker and why having a specific purchase requisitioner can contribute to your success.
Understand who your competition is
Before you embark on the proposal process, it is imperative to understand and evaluate your competitors in the field. You may already know some, but strive to understand all of your competition.
Getting insight into their pricing strategies and other services is crucial to gaining the upper hand in the RFP process. Do certain HVAC contractors keep winning bids? Try to glean their formula and use this intel to your advantage.
Networking is a great way to gain knowledge about your opponents too, so head to events, attend seminars and be active on social media. You never know when information and clues will present themselves.
Ask relevant questions
It may seem difficult to know how your competitors are pricing their proposals, but if you do not ask questions, you will never get the information you need. So, be sure to follow up after you lose out on a bid.
General contractors and even some clients will be transparent with you, telling you exactly why they awarded a bid to your competitor. It may be due to familiarity, bandwidth or pricing. Use this information to get ahead of your competitors on the next round of RFPs.
Some proposals get awarded to the lowest bidder, so getting your proposal tight and tweaked to ensure that the pricing is the most competitive will be to your advantage. Raiven (formerly Qmerit) has a select suite of tools that will do exactly that - find the best possible pricing on supplies that you will need for your HVAC project.
Discuss with your clients that Raiven's software gives you the upper hand on pricing. It works seamlessly by aggregating and comparing supply prices from multiple suppliers to ensure you get the best deals.
Proper and persistent negotiation can separate you from the pack. It sharpens your skills and allows you to be more precise when pricing out projects. Suppliers understand this and are usually willing to make concessions on pricing. They are playing the long game and are hoping on your return business for years to come, so they have the leeway to get this done.
Your purchase requisitioner can cut costs from suppliers, and you are able to pass these savings on to your clients. This could be the difference between losing and winning project or construction bids.
Research first- Research common supplies before starting any negotiations. Know exactly what the pricing is even before starting any conversations with suppliers. Having this data gives you a baseline, allowing you to make smarter offers.
Do not be afraid to counter offer suppliers. They may be willing to come down on some items. Certain HVAC supplies may have little or no wiggle room on pricing, so you can then negotiate other terms, such as free shipping, bulk discounts and free returns.
Utilize resources - The Raiven browser extension is the key to getting the lowest pricing. It works in the background and will offer better pricing for materials wherever you are searching for them. Have your purchase requisitioner embark on pricing research to get the best deals.
Look at bulk pricing - You may find success negotiating for bulk pricing deals. For instance, you may get a better rate if you buy several dozen cases of thermostats and pallets of wire spool as opposed to just a few.
Step up negotiations and press for these terms. Tell suppliers that they will be a preferred vendor and the main source for your purchase requisitioner to lean on.
Value beyond price
Sometimes it does not come down to the lowest bidder. Clients understand that contractors have more to offer than just low pricing. They know that the inherent value in other provided services is as important as cost savings.
Sell them on your reputation, experience and expertise in the industry. Show them referrals or recent jobs that you have completed and let your integrity shine through. Remember to show them the benefits that your Raiven platform has to offer too.
Raiven's software suite is loaded with extra benefits. Utilize the reporting function to highlight the discounts your purchase requisitioner receives from select suppliers.
Show this to your potential clients. Let them know that this is where you can pass the savings on to them.
Raiven's robust systems have benefits for all parties, a win-win.
Your purchase requisitioner and your bids will benefit from Raiven
By researching your competition, enlisting feedback and encouraging negotiations, all while utilizing Raiven's advanced software suite, you can demonstrate that you are the best equipped to provide an excellent value proposition to potential clients. In this way, you can beat out your competition and win more HVAC contracts.
Reach out to Raiven for more information and start winning bids today.