Wednesday, July 8, 2009

Bidding

Bidding projects is one of those things that occasionally drive me crazy.  Really, you can’t get away from it.  Every newspaper article you read says “Always get three bids!”  It’s understandable that you, as the client, want to get the best value for the money you spend.  I’ll offer a few thoughts, though….. 

When you tell me you are going to get a few prices, I am going to ask you a few questions; the first of which will be “How many?”  In a three bid situation, I have a 33% chance of being awarded the job, all else being equal.  Not great odds, but acceptable.  If you are getting more than three prices, my odds decrease…….right along with my interest. 

Getting more than three prices tells me that, despite your protestations to the contrary, your primary concern is price.  That’s fine, and totally understandable.  The thing is though, that the lowest price is not at the top of the list of benefits that I offer my clients.  I focus on the service I provide, the knowledge I bring to the table, and the professionalism with which I run my company.  These things cost money and often mean that I am not the lowest price out there.  I’m OK with that. 

Now, in any bidding situation, SOMEONE has to be the lowest price, right?  Of course, and in a competition among equals (i.e. professional companies, licensed & insured, certified, etc.), I may well be the lowest price, as easily as not.  Remember though, that I said competition among equals. 

So, another question I am going to ask you, when you tell me you are competitively bidding, is WHO I am bidding against?  If I am bidding against my peers, that’s fine.  If I am to be bidding against some unlicensed handyman or “a friend of yours”, my interest goes away.  This is not competition among equals, it’s a race to the bottom……and I’ll pass on it. 

The final question is “What do you want?”.  There’s an old saying that goes: “price, quality and speed……pick any two”.  So again, what do you want?  I’d suggest that, however your situation plugs into that old saying, you’ll be better off choosing from companies that fit that bill.  

If you’re looking to do a major remodel, costing hundreds of thousands of dollars, and lasting for many months, you want someone who has their act together………who’ll be there a few years from now, to service the project.  That’s not a guy with a pickup truck and a nailbag, that’s a professional contractor.  Likewise, if you need a bunch of odd jobs taken care of, or a small, uncomplicated project done, maybe that IS a guy with a pickup truck and a nailbag……maybe. 

Just be honest with yourself………and honest with me.

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