Construction Marketing Blog Posts
The 50-25-25 Rule: The Secret Weapon for Construction Bid Success
Are you tired of putting hours into tenders, only to lose out time and time again?
You're not alone. Many UK construction contractors struggle to win tenders consistently. But what if you could change that?
In this article, we'll explore how to boost your success rate with the tenders you price. We're not talking about getting more opportunities. We're talking about winning more of the ones you already have.
The Magic Formula: Price, Relationship, and Follow-Up
Before we dive in, let's break down the winning formula:
50% Price
25% Relationship
25% Follow-Up
Surprised?
Many folks think it's all about price. But that's only half the story. Let's dig deeper.
The Price is Right (50%)
Yes, price matters. A lot. But it's not just about being the cheapest. It's about offering the best value. Here's how to nail the pricing aspect:
1. Know Your Costs Inside Out
You can't price accurately if you don't know your costs. Take time to understand every expense. This includes materials, labour, overheads, and even hidden costs.
2. Be Realistic
Don't underprice just to win. It's a recipe for disaster. Be honest about what the job will cost. Your future self will thank you.
3. Highlight Value for Money
Show how your price offers the best value. Maybe you use higher quality materials. Or perhaps your team works faster. Make it clear why you're worth every penny.
4. Consider Offering Options
Give the client choices. A basic package, a mid-range option, and a premium service. This shows flexibility and can increase your chances of hitting their budget.
5. Be Clear and Transparent
Break down your costs clearly. No one likes surprises. A detailed, easy-to-understand quote builds trust.
Building Relationships (25%)
Now, let's talk about the human side of things. Relationships matter more than you might think. Here's how to build them:
1. Get to Know Your Client
Do your homework. Learn about their business, their challenges, and their goals. Show genuine interest.
2. Be Responsive
Answer calls and emails promptly. Even if you don't have all the answers, a quick response shows you care.
3. Be a Problem Solver
Don't just sell your services. Offer solutions to their problems. Be a partner, not just a supplier.
4. Show Your Expertise
Share your knowledge freely. Offer advice and insights. Position yourself as an expert they can trust.
5. Build a Rapport
Find common ground. Whether it's a shared interest or a mutual connection, building rapport can give you an edge.
The Power of Follow-Up (25%)
Many contractors drop the ball here. But follow-up can make or break your success. Here's how to do it right:
1. Be Persistent (But Not Pushy)
Follow up regularly, but don't be a pest. Find the right balance.
2. Add Value with Each Contact
Don't just ask for updates. Provide useful information or insights with each follow-up.
3. Use Multiple Channels
Mix it up. Use email, phone calls, and even social media. Different people prefer different methods.
4. Keep Notes
Track your interactions. Remember details from previous conversations. It shows you're attentive and organised.
5. Ask for Feedback
If you don't win, ask why. Use this feedback to improve future tenders.
Tactics for Tender Success
Now that we've covered the basics, let's look at some specific tactics to boost your chances:
1. Read the Brief Carefully
It sounds obvious, but many miss crucial details. Read every word. Twice.
2. Answer Every Question
Don't leave anything blank. If a question doesn't apply, explain why.
3. Use the Client's Language
Mirror the language used in the tender documents. It shows you're on the same wavelength.
4. Provide Evidence
Back up your claims with case studies, testimonials, and data. Show, don't just tell.
5. Make it Easy to Read
Use clear headings, bullet points, and a logical structure. Don't make them work to understand your bid.
6. Highlight Your USPs
What makes you different? Shout about it. Whether it's your eco-friendly approach or your track record of on-time delivery.
7. Include Visuals
A picture is worth a thousand words. Use charts, graphs, or images to illustrate key points.
8. Proofread Thoroughly
Typos and errors look sloppy. Get someone else to check your work.
Overcoming Common Obstacles
Even with these tactics, you might face some hurdles. Here are some common obstacles and how to overcome them:
1. Lack of Experience
If you're new to a type of project, partner with a more experienced firm. Or highlight transferable skills from similar work.
2. Limited Resources
Be honest about your capacity. Explain how you'll manage the project efficiently with the resources you have.
3. Tough Competition
Focus on your unique strengths. What can you offer that others can't?
4. Tight Deadlines
Show how you've successfully managed similar timeframes in the past. Provide a detailed project plan.
5. Complex Requirements
Break down complex aspects into simple, manageable steps. Show you understand the challenges and have solutions.
Factors That Help You Win
Finally, let's look at some factors that can give you an edge:
1. Local Knowledge
If you're familiar with the area, use this to your advantage. Highlight local suppliers or your understanding of local regulations.
2. Sustainability Credentials
More clients are looking for eco-friendly options. If you have green credentials, make them known.
3. Innovation
Show how you use new technologies or innovative methods to improve efficiency or quality.
4. Health and Safety Record
A strong safety record can set you apart. Highlight your commitment to workplace safety.
5. Financial Stability
Clients want reassurance you'll be around to finish the job. Provide evidence of your financial health.
6. Flexibility
Show you can adapt to changes. This is crucial in construction, where plans often evolve.
7. Quality Assurance
Explain your quality control processes. How do you ensure top-notch work?
8. After-Sales Service
Highlight any warranties or after-project support you offer. It can be a deciding factor.
Bringing It All Together
Winning more tenders isn't about luck. It's about strategy.
Remember the magic formula:
50% price, 25% relationship, and 25% follow-up.
Get these right, and you'll see your success rate soar.
Start by reviewing your current approach. Where can you improve? Maybe your pricing needs tweaking. Or perhaps your follow-up game is weak. Identify your weak spots and work on them.
Remember, every tender is a learning opportunity. Win or lose, there's always something to take away. Use each experience to refine your approach.
And finally, don't get disheartened. Winning tenders takes time and practice. Keep at it, and you'll see results.
Ready to win more tenders?
It's time to put these strategies into action. Your next big project is just around the corner. Go get it!
Looking for help with your Construction Contractor Business or have questions, please message me, let's have a chat.
