The joys of bidding work

[riptides]

It's funny Brian... but in my old career, that was the ONLY way to get some initial work from a brand new client. Perhaps that's my problem: Bringing too much of the marketing practices of my old career into this new one.

Dougster

Nah, not wrong... it depends....

But....but.....but...... LC says -

Originally Posted by LoneCowboy
so, I never underbid jobs anymore, just to get work.

Which is too general. I BET if the right circumstance and customer was out there, he would underbid. There is more to the job. than just the money and the work.

-Mike Z.

 

[Dougster]

My suggestion is to break into the very competitive market by knowing what you want to do... (sounds like you do, just make sure it is defined real precisely in your mind)
Knowing what it will cost you to do it. (this is always tougher then it sounds to quantify)
Network like crazy to get the word out. Most folks won't do this part, but conciously tell one person a day about what you are doing and what services you are offering.
Set an appointment with some of the small landscapers, cold call them and see if you can work with them where there is a synergy between the two of you and the equipment and work that you are doing.
Look around for problems that you can offer the solution too, then approach the folks with the problem, and offer your solution.
Be prepared for tons of rejection. I forget the show, but the Macy guy who is in that movie "wild Hogs" did a movie about a door to door salesman and what it was like, and the amount of rejection that you face. If you get a chance, I beleive it was called door to door.
Anyway, wish you the best. Learn tire repair

Good answer on my question Alan... and solid suggestions on the new business. To date, effective networking is my single biggest need and also my single biggest failure. It is amazing how hard it is to network when you are breaking into a completely new industry.

Advertising will only get you so far... and can cost a lot. I have stopped my truck just driving along a road and seeing a need... but so far that's not been particularly effective. Most were simply waiting for their own contractor to show up. Apparently, you have to become aware of these needs before they are obvious.

Rejection is my middle name and I've been handling it well so far. Why does it seem like everyone wants a week's worth of work done in half a day and only the folks with the riskiest jobs choose to call me. Why can't reasonably normal folks call me for once with a straightforward plan in mind?

Tire repair? I do mostly smaller properties (compared to all you folks) and I'm using a metal detector before I venture out into the unknown. I realize it's coming... but I'll try to avoid tire trouble for as long as I can!

Dougster

 

[Dougster]

I BET if the right circumstance and customer was out there, he would underbid. There is more to the job. than just the money and the work. -Mike Z.

This kind of talk keeps bringing to mind a fairly large (multi-million dollar) project we were bidding years ago in my old life... and we happened to lose it to the low bidder by not a whole lot. My crazy bossman at the time started going over our bid again in great detail to see if or how we went wrong. I'll never forget his famous words: "Dang it Dougster, if only we'd have neglected to include the building's foundation, we'd have won that sucker"!!!

Dougster

 

[Dougster]

We grossly under-estimated our ability to find work...

Great story Junk... but you can't exactly say that you are entirely new to this kind of equipment or work. Unfortunately, I am.

Can you let me in on your successful marketing approach? Or did it mostly come through existing contacts? My problem is that I came from an internationally based industry (where my *network* was literally "worldwide") down to a very localized industry where the network needs to be the folks right here on my street and in my town. That is a very tough change to make unless you have been involved in local affairs right from the beginning. The landscape & backhoe folks already working here in town have 32 years on me!

The work is coming, but it is coming slow. Same with the strategic partners. The Internet helps, but only to a point... and only with Internet-savy customers. Newspaper advertising is expensive... phone book ads are even more expensive. It's been 10 months now and the savings account is quickly running out. Obviously, a near-snowless winter didn't help. I figure I can give it another 6 to 10 months before all the money is gone. Then the dream of my very own business may be finished and it will be back to an office for moi.

Speaking of local... I am old enough to remember when the local Kubota dealer repaired lawnmowers & snowblowers for a living in a tiny little shop while I was off helping to build billion dollar projects here and overseas. Now... 30 years later... he owns two gigantic Yuppie "Kubota Palaces" with sales in the multi-millions and I am dang near broke!

Where the heck did I go wrong???

Dougster

 

[riptides]

This kind of talk keeps bringing to mind a fairly large (multi-million dollar) project we were bidding years ago in my old life... and we happened to lose it to the low bidder by not a whole lot. My crazy bossman at the time started going over our bid again in great detail to see if or how we went wrong. I'll never forget his famous words: "Dang it Dougster, if only we'd have neglected to include the building's foundation, we'd have won that sucker"!!!

Dougster

Now now Doug, think positive. When I wrote that, I realized it could go many ways. My bad.

Your crazy bossman? pretty savvy to me.

Time and circumstance *may* dictate my price point, if the *risk* is low or the *gold* is reachable. Tough call.

-Mike Z.

 

[Farmwithjunk]

Great story Junk... but you can't exactly say that you are entirely new to this kind of equipment or work. Unfortunately, I am.

Can you let me in on your successful marketing approach? Or did it mostly come through existing contacts? My problem is that I came from an internationally based industry (where my *network* was literally "worldwide") down to a very localized industry where the network needs to be the folks right here on my street and in my town. That is a very tough change to make unless you have been involved in local affairs right from the beginning. The landscape & backhoe folks already working here in town have 32 years on me!

The work is coming, but it is coming slow. Same with the strategic partners. The Internet helps, but only to a point... and only with Internet-savy customers. Newspaper advertising is expensive... phone book ads are even more expensive. It's been 10 months now and the savings account is quickly running out. Obviously, a near-snowless winter didn't help. I figure I can give it another 6 to 10 months before all the money is gone. Then the dream of my very own business may be finished and it will be back to an office for moi.

Speaking of local... I am old enough to remember when the local Kubota dealer repaired lawnmowers & snowblowers for a living in a tiny little shop while I was off helping to build billion dollar projects here and overseas. Now... 30 years later... he owns two gigantic Yuppie "Kubota Palaces" with sales in the multi-millions and I am dang near broke!

Where the heck did I go wrong???

Dougster

I picked up the lead on the biggest of my clients through my attorney. He represents several of the property owners involved with the managment company. From there on out, it was word of mouth and knocking on a few doors.

Don't be shy. Ask EVERYONE who has the clout to help you. Just like asking the prettiest girl in class for a kiss. Every once in a while they say yes!

 

[GrowingRocks]

If it was a trailer park neighborhood, the guy had a big beer gut, 3 day growth of beard, a passle of kids running around, a pregnant wife sitting on what's left of a front porch and a major appliance or 2 in his front yard, would it have been OK for him to try and knock the price down? If so, why? Just curious.

Hmmm... it sounds like you have met my brother-in-law???

 

[EquipmentJunkie]

I've been quickly scanning this entire topic for the first time this afternoon and I am going to bring up a point that I don't believe has been made yet:

Say LoneCowboy had decided to take the next door neighbor up on his $400 offer. What happens if $500 neighbor (neighbor A) talks to $400 neighbor (neighbor B) about their recent mowing jobs? Over the course of conversation, the price that each paid is discovered. Neighbor A would have been upset! He would likely be thinking: "Why the $100 difference?" or "Maybe I should get somebody else to mow the lot the next time." A satisfied customer thinks that he has been shafted.

I would have done what Brian did. I'd be thinking, "The tractor's at the site and off the trailer, no additional costs in labor, hauling, & fuel...OK, I'll do it for $450. Load up, go home, come back later, and unload...$500." Brian made a wise business decision...the costs should play a large part in pricing. I am sure Brian knows where his break-even point is located.

 

[RedRocker]

Nearly every day, something reminds me of my departed father. He was a wise man. He started with nothing and built a good life for his family. No matter what the situation, he'd always have some "old saying" that fit the bill. I'm reminded of one now.

"A wise man never argues with a fool, lest the casual observer may not be able to distinguish which one is which"

Your Pop was a wise man indeed.

 

[MossRoad]

... deal I made with my next customer, should not really be your concern....

The heck it wouldn't. If I find out I'm paying your travel time and my neighbor is getting a better deal on my dime, I'm not going to use you ever again. And I'll badmouth you to all my friends, family and neighbors, too.