Bidding/negotiating help wanted

[CalebNH]

Hello fellow travelers,

I am looking for bidding/estimating resources (books/videos/seminars/software) to help me improve profitability. I am a finish carpenter and I am a lot better at the actual carpentry than I am at the business of carpentry. When I bid I typically underbid and/or miss opportunities to maximize profitability (such as offering customers options, etc). I would love it if someone could share their bidding/negotiating secrets with me or any resources you've used that improves thinking along these lines.

Thanx C

[RTF]

For a start RS Means cost estimating manuals. You may want to check out estimating software as well.

[RTF]

Another one that will help is Walker's Building Estimator Reference Book.

[CalebNH]

Thank you for the responses. I am rolling up my sleeves and getting a lot more scientific and focused on running a business. I found a book on Amazon that's helping with my thinking. Markup and Profit, a book for Contractors..

thanks again...

[gtp1003]

Caleb drop me an email drag70buickgs@att.net i will be more than happy to help you free of charge. oh leave a number so i can help you alot easier so i dont have to play email tag.

[cementcreek]

Thank you for the responses. I am rolling up my sleeves and getting a lot more scientific and focused on running a business. I found a book on Amazon that's helping with my thinking. Markup and Profit, a book for Contractors..

thanks again...

What's the book you found?

[Rich]

"Markup and Profit"

[gtp1003]

Ok look at this video for estimating if interested its bounced from my site front page of the site. also on the site i help salesmen with selling. and with that my selling stuff is completely free. please fill out the sales for found in sales button fill it out in complete. and i will get back with you within a day. Here is the link: since it staes i have to have alot more well email me for the site for the link sorry, and it is above the drag one. hope i can help.

[gtp1003]

Check out estimation pro look up their website it can be customized for your needs period. Hope that can help you

[cementcreek]

For negotiating I would say look at something from Dan Kennedy or another sales person. Most of it is being willing to ask and believe you are worth what you ask. My dentist is a great example. He's the good, tells you right out front, "I'm not the cheapest, go someplace else if you want that", and he doesn't take insurance either. But he is good at sales and has a system down. 6 months before I can get in.

[gtp1003]

well there is a little negoiating but very little you have to know your bottom line. Sales help i can do but i dont know what the problem is hence i can not fix what i dont know is broken. go over to roofing.com under the business section. look for my name and that should give you proof i know what i am doing. Other than that dont know whatelse to say.

[gtp1003]

Oh i did not learn from a book, books are theory. not real world, every sales contact is different and that where a book gets all f'ed up. every person is different and every time you sell is different to a point. I learned this way, every winter i would think out side the box on things and in the first month i would try the new stuff and if it was not doing well i could shift back and go after them again.

This is answers to objections. Hope this can help you make more money. Here is a trick I learned. Ok regardless if you get ink on paper or not. As you are packing up have 5 business cards in your pocket with the number $100.00 on it. This can be used 2 ways. Scenario 1. You were too high or whatever they did not like you and you know this before you leave, Say Mr. Jones im sorry we were not the company for your project but as we believe in xyz roofing (your company name) that we strive for our best. I am going to give you a chance to make 500 dollars off of us. Why they ask. Well since we were not the company for you, maybe someone that you may know will be a fit for us. 500 is a lot of money. Pause wait for response. Now you continue They will agree. So they will take the cards and say to neighbors whomever, and they give the card that you gave them, now naturally the 100 is put into the referred lead. Hence you don’t pay for the 100 bucks. 80% of the time you will get at least 2 or 3 new leads out of it unless they hate you. Now you explain to them it must be a sold job that they referred us to. So they will try and sell your product while buying someone else’s.

Scenario 2. You have called back and they said they went with another company. Say im sorry to hear that, but as a gesture of allowing us to bid on your project im going to send you five business cards with $100.00 on them not money just the numbers. Let him know same as above. This works rather well. The one above you have to know you have lost the job before hand or you screw yourself. You can be safe and use number 2. You will get some business out of just business cards. You just have to remember to write them a check so you can write it off at the end of the year as advertising, and since you have already recouped the 100 bucks from the other leads you have just now doubled your money!

If you need anything just let me know. If you like the stuff I have sent or this email please let me know. Just don’t put everything out on the table for everyone to download at nrg, to many people we don’t know on there if you get my point the never post.

You owe me nothing This is my way of saying thank you. I would request if you could a posting on nrg if you feel its right, if not that’s fine no harm no foul.

Now if you lose, 5 business cards again with a 25 dollar gift for dinner on you with the same thing. TAX DEDUCTION

[Mike Pearson]

You'd be surprised at the markup you actually need to use in order to make a profit. Of course, it varies by industry, but usually, the method goes like this:

List and esimtate the hard costs for materials.
List out the labor hours (i.e. cost for labor)

Mark up your materials 40%
Mark up your labor 120%