what percent of bids should i expect to get signed

Now that the winter is almost over i am finally getting homeowner calls again to my plumbing business. I think i went 3 months without 1 call(except waterheaters)....

I am starting to run into the same problem i had in the fall. I bid like crazy and close almost none of them. I spent 3 hours this morning doing 2 bids. i can tell neither of them will go with me. when i bid on jobs my normal contractors send to me i get 40-60% of them. when i bid on individual homeowners i think its 10% or less. i have cut down on my bidding by giving them a rough number over the phone. alot of them cut the conversation short when the find out how much a plumber charges. the 2 from today knew it would be that much. one was exactly what i quoted.

here is how i sell:

friendly rough quote over the phone
show up on time for the bid, dressed nice,truck looks like new
give them one of my professionally made fliers which talks about my service
tell them how i lay dropcloths and protect their house
tell them that i am a member of all the local builder associations
give them the bid and explain each line
smile-handshake-have a good day!

if its in a low end neighborhood i know i have 0 chance. they will not spend $5,200 for plumbing on a run down house where 100% of the plumbing inside is homeowner/handyman quality. (this was one of my bids this morning)

my mentor told me i should be able to whittle down office time to 15%. right now i charge for 25%....i think its more like 40% though. ive done 10 hours in individual homeowner bids in the past couple of weeks...not 1 sale...where can i charge to make up for this? i cant......

id like to charge a estimate fee....the magazine which comes in the mail about running a plumbing business says we should all charge it...id love to charge $150 for an estimate....i am strongly considering $25

i have changed my bidding for contractors...i bid without going to the job site. they fax/email me photo's and give me basic info. then i put together a rough bid...when i get the job then i visit the job and verify the price. there is no other way i could keep up with the level of bidding my doing lately. i have yet to sign 1 job which i have done this way. ive been doing 1-4 bids per day this way for 3 weeks now. strange not to have 1 sold out of 20

has anyone ever heard of a contractor charging for estimates?

i never have

[MicheleDB]

You forgot to ask for the sale. Just handing over a bid is enough. A simple, "do we have a deal?" or closing quesiton such as "I'm available all day on Tuesday and Friday next week. Which do you prefer?" works wonders.

Zig Ziglar is my favorite sales coach and you may find a lot of beneficial sales tactics in his recordings.

you also failed to mention whether or not you follow up and how often you do it. Really, you should follow up until they say no.

as for estimates, I've paid for them in the past, but only if the estimate fee is applied to the work if i commit to work being performed.

[ta7]

Huggy,

go here and buy this!

http://www.amazon.com/gp/offer-listi...5005846&sr=1-6

it's the best $7 you will ever spend.

Read it, highlight the parts that you find useful so you can go back later to it.

First, you need to better qualify your leads.

where are these calls coming from? Don't be bashful on the phone with these people. Ask the pointed questions, knowing that some folks will get irritated with your approach. SO WHAT!

possible questions:

How did you get my name?
How many estimates have you gotten so far?
How many estimates are you getting?
Is price the most important issue for you?

If you are getting calls from the wrong type of customer ( price shoppers only) then you might want to look at the focus of your marketing. Are you marketing price or quality.

Charging for a bid/ estimate is not a bad thing. I paid $25 two weeks ago for an estimate on a fence repair. I knew it up front. Are you getting paid for your time? of coarse not! You are increasing your potential for a close some what.

Finally, try changing your approach to these calls. If you think you are just going out to bid a job then that's all that will usually happen. On the other hand, if you are going out on sales calls and the bid is only part of your process, then things change. If you expect to get the sale, some times you will if you ask.

Ways to increase your odds ...

Don't go out on a one legger - make sure husband and wife will both be there. I know it's hard but insist on it. Why, because if only one is there they have an easy way out of the sale by saying they have to check with the spouse.

Get them to the kitchen table. Many important decisions are made there .

Make sure the bid is a contract. When you complete it, turn it around , put it in front of customers and go through it. When you are done answer and questions then hand them the pen and tell them that you require 30% or 50%
down and the balance on completion. Then shut up!


Hope this helps,

A nominal bid fee isn't a bad idea, but even better, apply the bid fee to the bill if they should decide to go with you. (They pay $25 for the estimate and get a $25 discount when you're done). Give them a rough estimate over the phone, then tell them you can come out and give them a detailed estimate for a $25 "refundable bid fee".

[Kilihuladdy]

With the rising cost of gas and all driving around alone to give these estimates is a pain if you don't get the business. I am seeing everyone who delivers or contractors who service, charge more for coming to ones house. I have had service people come to the house to do work and they worked it like this. They charge for the estimate, but if you decide to work with them, you are credited back the estimate money. Therefore, the estimate was free for me (unless it was already padded into the price and I was unaware of it ) because in the end, I went with them. I know my sister-in-law had a similar experience and they put an expiration date on the offer. She went with them and within the time frame and her estimate was refunded when she had the work done. I usually try to get 2 or 3 offers estimates unless I have a real good guarantee that the service provide is very good and far with his/her charges.

Hope is helps.

Jackie

your 4 questions are PERFECT.....its all the info i need to judge where they are at. The big problem for me is how to work it in to a converstion. Its Blunt!

it would screen out alot more...along with free phone estimates and $25 for a real estimate would probably get my rate from 10% to 50%.(yes i would give them the $25 back if they signed)

also i do just walk out the door without asking them sign....i sell my company, sell how im going to do the job, but dont take the final step and actually sell the job itself.

I LIKE IT........thanks everyone....my questions are answered/solved in 8 hours

what does everyone else think of asking those 4 questions?

(i did get a signed contract in the mail today, so im 1 out of 10 just like i always am)

We have been charged for almost all estimates. But if we elect the contractor to do the job, they deduct from the price. But I don't think we have ever really gone out and just got estimates. I call one person to tell them they have a job.

The electrician charge $69.99 for the estimate. He told me the job would be $314.00. He did the job and the estimate was "not charged". If he walked away without doing the job, he would have charged me $69.99. And he told me that on the phone (and it was on his yellow book ad).

The company that is putting in the new heater charged $89.99 for the estimate. We already paid him but the $89.99 will be reflected when we get the invoice.

Charge for your time - you will see most people do.

i dont ask for money down...its part of how i do business....i dont know any plumbers who ask for money down. i tell them i dont get paid until im done and will not run off with your money.

i stopped following up because it has never gotten me 1 job. people seem annoyed...very annoyed...one of my contractors told me 'if they want you they will call, why wouldnt they? your phone call asking them why they havent signed yet wont change their mind if they dont want you'....so to me either they want me or not....with contractor jobs i always followup....has it helped?...possibly...not sure...they dont act annoyed..

the fence guy suggests a letter as a followup....i may come up with a letter

[MicheleDB]

Originally Posted by huggytree

your 4 questions are PERFECT.....its all the info i need to judge where they are at. The big problem for me is how to work it in to a converstion. Its Blunt!

huggy, those are basic qualifying questions and you need to ask them upfront, no need to work them into a conversation. Just ask. If you aren't qualifying them after the greeting, you will most likely pitch the wrong product.

Everyone's different, but I choose to stay away from yes/no questions if possible. It only leads to additional questions and the more you talk, the less information the customer can provide.

So after asking if they've had estimates, ask why they're still looking at other plumbers. Here, they may tell you that the other guy was too expensive, the didn't like him, they want to get a few more estimates first, they're not looking to actually purchase for 2 more weeks, so on and so forth. Once they're done talking tell them to continue. It's amazing the stuff people tell you on the second wind.

[MicheleDB]

Originally Posted by huggytree

i stopped following up because it has never gotten me 1 job. people seem annoyed...very annoyed.

lol, I'm old school. If a person doesn't say no, they're still a prospect.