Win More: Easier Estimates, Faster Billing

Sure, offering  “good, better, best”options can be helpful in construction, but not if it results in handing customers incomprehensible estimates. Transparency is great too, but do your customers really want to sort through your entire, itemized cost of doing business? When you finish a project, how long does it take you to invoice? (Hint: if there is an invoice lingering on your to-do list, you have room to improve.) Read on for pointers about making it easier for customers to do business with you. Afterall, that’s a growth strategy, right? 

Can You Make It Easier for People To Do Business With You?

How easy is it for potential customers to review your estimate and come to a conclusion? How easy is it for them to pay you based on your invoices? Tuning into these two aspects of your business could significantly improve your bottom line, as Nick Howell of T&N Asphalt Services points out: “In an industry built on timing, follow-through, and reputation, that simplicity and ease of doing business matters more than most contractors realize. After nearly 30 years in this business, I’ve seen it proven over and over again. Customers may forget the exact details of the job, but they will never forget how easy — or how difficult — you were to work with. Keep it simple. It will pay off more – and sooner — than you think.” 

Toward simplifying your business, Howell suggests re-thinking how you handle administrative costs,  “such as fuel surcharges, mobilization fees, cleaning fees, environmental fees, and credit card fees etc.,” and points out: “From the customer’s perspective, itemizing these expenses feels like death by a thousand cuts….These types of administrative expenses should be considered part of the overhead that’s included in every estimate. Roll those costs into your pricing and present one number. These expenses are simply the cost of doing business.” Howell further advises reducing the options you offer, and making sure that the way you communicate choices to customers is clear and easy to understand. Keep in mind: “The more complicated your bid, the greater the chance of frustration. And frustrated customers hesitate, delay decisions, or walk away. The goal is to ease the buying process by removing confusion.” 

While eyeing your business practices with the goal of helping more potential customers get to yes more quickly, it’s a good idea to also remove hurdles in how they pay you. If it has been a while since you really thought about your payment practices, chances are good that it’s time to update your approach. According to Howell, late invoicing and outdated payment practices may be impacting your bottom line more than you realize:

• It’s unbelievable how many contractors sit on invoices for weeks or even months. That doesn’t help you or your customer. They’re expecting a bill – and have made budgetary plans to pay it – and you need the cash flow. Prompt invoicing shortens payment cycles, reduces disputes, and keeps momentum during the busy season.

• If you accept credit cards, treat the processing fee as a cost of doing business. Is Apple Pay an option for you? What about Zelle or Venmo? PayPal? These all aren’t options for every contractor or for every job but offering them to customers does make the payment part of the transaction easier for your customer. And it makes it more likely you’re going to get paid more quickly.

Who’s Your Ideal Client and What’s Your Ideal Project?

Construction professionals also remind us that clarity on the clients and projects you really want–those you can uniquely and best serve–is also essential for growing your business. No one can chase everything, and the time spent doing so adds up. Knowing where you can truly add value enables you to stop chasing bad projects that distract from your company’s success. With a renewed focus on the clients and projects you want, you can concentrate more on business development, following these tips from Matt Verderamo at Well Built Construction Consulting:

• Develop a go/no-go: If you get your ideal client and ideal project right, then you should use that information to develop a go/no-go criteria. You will be shocked by how clarifying it is to start saying “yes” to the right projects and “no” to the wrong ones. 
• Create a culture of business development: Relationships matter for negotiating work, and most contractors don’t do nearly enough business development….Create a culture where BD is everyone’s job. You’d be amazed by the benefit of having everyone on your team consciously build relationships….Get everyone involved.
• Train estimating staff in basic selling principles: …Teach them how to use leverage, negotiate, run high-quality sales meetings and use the power of influence to get more projects awarded at your target number. You’d be shocked by how your hit rate changes just because the team starts to see the big picture — and focuses on winning, not bidding.

Ready To Get Growing?

Colonial Surety Company has programs for builders of every size. We’re national, direct, digital bond writers (with experts who answer the phone). With us behind you, you can say goodbye to painful and old-fashioned approaches to surety bonds, and get your company on a growth track—-starting now.

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Founded in 1930, Colonial Surety Company is a leading direct seller and writer of surety bonds and insurance products across the USA. Colonial is rated “A Excellent” by A.M. Best Company and U.S. Treasury listed. Let’s connect today: Colonial Surety Company.