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View Full Version : Reasons you lost a bid?


Steve
03-29-2006, 12:22 AM
What are some of the reasons you heard of why you lost a bid on a job?

tiedeman
03-29-2006, 12:26 AM
number one reason...too high of a price

I don't think that I have lost it to anything else but that

Steve
03-29-2006, 12:33 AM
What % of bids do you feel that happens with?

tiedeman
03-29-2006, 12:38 AM
I would say probably 99.9% of my bids.

I can't think of another other way that I would lose them, unless it was my presentation or lack of knowledge about something.

Steve
03-29-2006, 12:45 AM
But I mean out of all the bids you give how many would you say you don't get? What kind of percentage?

tiedeman
03-29-2006, 01:00 AM
I would say around 60% of my bids I did not get. I am just guessing though

Ned
03-29-2006, 01:04 AM
Price is also my enemy. This usually stems from a lack of education in the world of business, on the importance and the work involved in my field (design and advertising). The sad part is, I so often see people who refuse my services because of price, in the market for a new Graphic Designer a very short time afterwards. By then, they are usually too embarassed to come back, but some do. I feel it is a pity that people have to learn the hard way...

In the end though, it pays off to maintain your stand, and don't try to beat out the competition by "lowballing". Unless your position is in "cheap, no-name service" (ie, this is often a great position for printers offering graphic design services), then you will lose your footing in the market if you "cheapen yourself". For a professional high-end designer, this would be losing sight of your brand...

Steve
03-29-2006, 01:11 AM
You know this is a fascinating topic. It made me think of consmer goods. A little while back, these new fluorescent bulbs came out.
http://www.bulb-source.com/compac2.jpg

They are designed to last a lot longer than conventional light bulbs but cost more. They didn't take off as fast as designers thought because of the price. It seems consumers were more willing to buy cheaper and throw them away when they burned out, even if it costed them more in the long run.

If this is human nature and we can't fight it, is it better to try and work with it?

tiedeman
03-29-2006, 01:16 AM
Actually my whole house has CFL bulbs in it. *Believe this or not, my power bill dropped approx $15 a month when I put those suckers in. *5 year warranty on them *They are pricey though, around $4 a bulb.

You could go back to the whole price situation as why I got those too. I picked them up to save money on our power bill

Steve
03-29-2006, 01:32 AM
Troy I really think you are on to something here. I think you found a vulnerability that will allow you to exploit it.

I think you are going to be able to get many more customers this way from the larger competitors.

tiedeman
03-29-2006, 01:48 AM
Like the CFL bulbs I thought before about putting a guarantee on my work. *I will tell you a story about a customer that I was able to retain from 2005:

Back in late summer of 2005, this one customer had a horrible ant problem. *I usually always take care of ants with granular products but he had a cat that was outdoors. * I suggested perhaps a liquid application then that would dry quicker and faster, and the cat could just be locked up in the garage for the product to dry compared to the granular product that would be there for a while. *I personally did not want to do the liquid, because I never really had great results from it. *He agreed to the price of the liquid application and there would be two applications left in the year that I could do.

So I came, applied the first application, the gentleman paid me and I told him I would be back in about a month to do the second application. *

Well, I called him up the week before to tell him, that I was going to come and do the second application and for him to please be there to put the cat in the garage. *Well, his wife answered the phone, said that they didn't want another application because the first one didn't work. *She was kind of mad that they wasted $70 down the drains. *So I apologized and that was that.

But I thought that I would figure out this problem. *So I started searching around for an animal friendly granular application material. *I finally found one. *I called them back, told them that I found a granular one, and said that in 2006 I could do all granular. *They were not that pleased still and really didn't want to go with it because they were afraid of throwing money down the drains. *So I told them, "Tell you what, if you see no results after the first two applications, I will fully refund your money, that is my guarantee." *They were sold, they signed up.

Sure they could always say that the product didn't work after two applications, and I am out approx $25.00, and about 30 mins of work, but I also saved faced by giving them a guarantee.

Steve
03-29-2006, 01:56 AM
That is a great story! Would there be a way for you to see the ant problem before the application and then after? Is there a way you can physically judge to see if it is working besides taking the home owners word for it or not?

Because if you could, that would be another great weapon to add to your arsenal. A guarantee like that would be a great seller!

tiedeman
03-29-2006, 02:00 AM
Probably when I apply the second application, I can kind of tell.

Instead of doing a guarantee on the customers word of whether they think it did a good job or not, I could do a guarantee on the actually results shown. It really comes down to measuring the results properly though

Steve
03-29-2006, 02:02 AM
It is really an interesting idea. Sure some people will scam you if they get the chance. But who could say no to a company offering the best price WITH a guarantee?

Does any other company offer guarantees like this?

tiedeman
03-29-2006, 02:04 AM
Not in the lawn application business that I know of. I could be wrong though.

Steve
03-29-2006, 02:04 AM
That would give you an advantage then http://www.gophergraphics.com/forum/iB_html/non-cgi/emoticons/smile.gif

tiedeman
03-29-2006, 02:07 AM
I never thought about that. See, I talked about this with my wife before after I landed that ant job and she told me in a nutshell, "Yes, its a guarantee, but also how much money will you lose is that guarantee when the product doesn't work properly. You are then out of all that money and time."

Steve
03-29-2006, 02:11 AM
You know this could really make your company stand out.

If you find it works, how the heck could the other larger national franchise act to compete with you on this? They would be slow to react.

It's a great selling point.

I would pick a company who offered a guarantee even if they charged a little more. Which would give you an extra advantage.

Meet or beat the price AND a guarantee.

This is HUGE!

tiedeman
03-29-2006, 02:13 AM
Would you do both, or just one?
1. Beat the price and guarantee
2. Guarantee
3. Beat the price

Steve
03-29-2006, 02:25 AM
I could say be conservative and try one at a time.

But hearing what I have about your competitor, I think I would do both. It would be so over the top! Which is what I think you have been looking for.

I just think it's an awesome combination.

In fact, I can envision you creating two banners, one on each side of your trailer to promote this.

tiedeman
03-29-2006, 02:28 AM
But do you feel that doing something like this would be too over the top?

Something that actually might drive customers away because it would be a too good to be true thing.

Steve
03-29-2006, 02:35 AM
As a consumer it would not drive me away. I want a sure thing.

For instance, I would rather buy a TV at Bestbuy than at a local small TV store. Why? Because I know it will be guaranteed to work for a year and if it doesn't I can bring it back to be fixed for free with no hassles. I also know their price is going to be great.

Why shouldn't I as a consumer expect the same thing from my lawn applicator? If I have an ant problem and you say your application will resolve it and then you guarantee it. How could I go with someone else! You are telling me you will do what I am paying for.

I think that it is also killer word of mouth advertising potential. A neighbor will tell another about a company that will guarantee such work! You can't beat that!

tiedeman
03-29-2006, 02:39 AM
Ok, my next question is; Isn't a guarantee for a product, different than one for a service? Wouldn't it be harder to track and wouldn't you lose more money with a service guarantee compared to a product?

Steve
03-29-2006, 03:06 AM
Sure the potential is always there. That is why many companies won't do it. It opens a path to fraud.

But the flip side to it is this. Most people are going to want your good service over and over again. They won't mess with you like this.

A smaller group of others will and you might just be better off getting rid of them anyway. It's an easy out.

Think of how many customers you have now who are such a pain, you wish they would just say you aren't doing a good enough job and demand a refund on the last application. If you could easily wipe your hands of them you would probably be better off.

This could really weed out the bad apples in the customer base.

You won't know for sure how it will work until you experimented with it. But I have a feeling it would land more bids then hurt you.

tiedeman
03-29-2006, 03:16 AM
But would it put a strain on cash flow if numerous people demanded their money back.

Or instead of a money back guarantee, what about a free appliation guarantee?

Steve
03-29-2006, 08:54 AM
Let me start another post on this.