Quote Profitably - Blog

5 Steps to Double the Success Rate of Your Quote

5 Steps to Double the Success Rate of Your Quote

 

Quote Tip #1: Who is your Target Market?

It’s important to know who your target market is because once you’ve identified this you’ll be able to better research your ideal customers. Focus on the fears, frustrations, wants, and needs of your customers because this is one of the key factors in influencing your sales quote to getting approved. Customers base their decision on whether they should buy from you or not mainly on how much you relate to them i.e.: understanding their reasons for wanting this project done, their concerns, and whether or not you speak their language.

 

Quote Tip #2: Are you Making Money?

Always ensure that the quote price is sufficient to getting the job done and that you’ll be making a profit. In order to work out if your price is profitable, work out your “job costing”. In addition, get to know your margins! You need to know the net profit you make from each client who buys your products and services. If you understand how much you actually make from each sale, you’ll be able to work out what is required to cover your costs and make a profit.

 

Quote Tip #3: Understand your Capacity.

Before you quote on a job, always ask yourself, “can I provide the products or services in the quantities and timeframe requested?” Make sure you don’t quote beyond your means to deliver either in cost and/or time. Be confident in your ability to complete the tasks required. Research and review the proposal and consider your quote carefully before you commit to it. Never quote unless you’re certain you can deliver to their satisfaction.

 

Quote Tip #4: Do you have a Sales Process?

Develop a sales process so that you can systemize your quoting efforts and win more jobs. When you take a strategic approach with your quoting, you’re less likely to lose out on jobs. Take the time to create templates for quotes so that your presentations always look professional and consistent. Have a script prepared for each phase starting from the first moment of engagement. Present testimonials of your past work, as this will display your reputation and promise to deliver. Always deliver a quote in person.

 

Quote Tip #5: Be Proactive and Follow-Up.

Too many times contractors will spend time assessing the work, providing advice and preparing the quote but shortly after the delivery they disappear just waiting for the customer to call back. Be assertive, it is your right to ask for feedback. Feedback can mean winning a job, getting a referral or just you expanding your database for future opportunities. Treat quoting like an investment, where you deserve to know what your return is on it.

 

What is the Next Step for ME in order to Quote Profitably?

It is important that you track all your jobs so that you’re always making a profit and being competitive in your quotes at the same time. To help you get started, we’re giving away our Progress to Profit Dashboard™ tool. Get all your jobs on track to profit! You can grab your copy by clicking here.

Win More Jobs

How to Win More Jobs with our 30-Point Checklist

You want to win more jobs for the coming season in order to catch up on past work, be able to pay your crews on time, and get the chance to make a bigger and better name for you and your company. Did I guess right?

Why isn’t that happening? I bet it’s because you think the only contractors that win enough jobs out there are low-balling their prices in order to get them. While that may be true in some cases, it’s not the only way to win more jobs— trust me.

Look, I know there’s fierce competition around every corner, but lowering your prices just to land a job to make measly profit, is not worth it. There are tons of other marketing and sales options to try before you reach that low point…

In fact, I’ve just completed a list of my top marketing and sales strategies that will help contractors win more jobs. It’s called The Contractor’s 30-Point Checklist to Winning More Jobs™— pretty straight forward, huh? It contains many helpful tips and suggestions that you can apply real-time.

It’s a simple checklist to help you focus on the strategies you need to be doing in order to win more jobs. This checklist stresses the importance of identifying what you currently have in place in terms of marketing and sales strategies and what areas you might not even be aware of, but should be implementing into your own business.

Stop scraping by, winning jobs, with only the method of lowering your prices; you’re only further hurting your employees, your company, and yourself. If you want to win more jobs, make more profit, and take your business to the next level, you have to think strategically.

You can print this checklist off as many times as you’d like and share it with your team to look at. This checklist will help you differentiate yourself from your competition because you’ll have extra strategies beyond just price. You’ll find these strategies have nothing to do with lowering your prices but everything to do with winning over your ideal customers.

Today’s the day you stop lowering your prices and start winning more jobs!

Pssst: this checklist is free! Simply click HERE to start your instant download.

This tool has helped dozens of Canadian contractors nationwide and it can help you too!

Remember, if you have any questions or comments, shoot us an email at support@profitforcontractors.com.

What strategies are you going to test out? Leave us a comment on our Facebook page!

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Job Costing, Accurate Estimates, Field, Status, Profits

Job Costing

Attention Builders, this one’s for you!

 

Job costing allows for accurate estimates to be provided to your clients, and in turn, protects you from getting short-handed.  You do not want to start a project with a cash discrepancy; the best way to protect yourself is by using previous data to calculate costs on labour, material, subs, equipment rental and any other variable costs that may affect your profits. The historical data will also let you know where the losses and gains were on the previous project. When you are estimating on labour rates and hours, make sure you consider the level of difficulty the project will be for the crew, and how much time is required to look after them on-site. You also want to keep in mind any indirect costs such as taxes and benefits. Take your time to provide accurate estimates on labour and material costs, so that you can stay profitable!

 

Job Costing lets you know the status. One of the main purposes of job costing is to create a better schedule so that you can manage the crew more effectively— knowing exactly what the crew is doing on the project. This process eliminates waste in labour cost because you will be allocating your crew time properly, while it indicates where you are within your budget. You don’t want to go over budget and run into problems that cause you to go into a deficit. A schedule and job cost calculation will also indicate where you are at with the progress of the project and if you are on track.  Make sure you are tracking the status of the project by creating reports and setting up red flag alerts in the system to spot potential issues, ex: if you are behind schedule and coming close to going over budget.

 

Job Costing lets you get more details from the field. Job Costing is about creating actual cost categories. Once you have the categories setup and communicated to your crew, the information coming from the field will be more relevant. The time cards will not just include the time coming in and out, but also what tasks they worked on each day. In addition, those that have access to the budget in the field will also include actual-cost-to-date information in their invoices, inventory receipt, and time card. Getting this extra information from the field will provide you with a better measurement of the actual cost associated to the categories you created for your project. The information will also help prevent overspending. Initially, the details and paperwork will be a lot, but once it is done, habits will be formed and your staff will get used to it, then the amount of work on your part will be reduced.

 

Job Costing will make you profits. It is in the details with job costing where it will save you money and lets you stay on track with the profits you wish to make on the project. Job costing is especially useful when you are tight on cash because you will be gathering actual costs associated with your project, therefore you will always be aware of how much cash flow you have on hand and know when you need to bill your clients so that cash doesn’t run out. Since you will be billing accurately, you will ensure that expenses never get ahead of income for a project.  The ability to predict cash flow and know where money is being taken out from can make all the difference on how successful and profitable a project will be to your business.

 

Conclusion— Job costing allows you to manage your jobs more thoroughly because it takes in account the complete picture on cost. The system demands you to look into every detail from labour costs per task, to costs per cost category on a job. The biggest benefit of job costing is that it will protect your cash flow because you will have a better understanding of scheduling and  cost. Too many times when contractors run into financial problems, it is because they are not profitable on jobs and run out of cash flow.

 

If you’re a builder looking to improve on this area in your business, sign up for a free Business Growth Strategy Session with Contractor Specialist Andrew Houston to discuss which areas you need to improve upon in order to maximize profits and scale your business. Click here for more details.

Client Testimonial - June Webinar

How Scott Saved 2-4% on his Bottom Line by Leading Effective Team Meetings

 

Scott used to dread running team meetings.

Prior to this month, Scott, a contractor in the Greater Toronto Area, used to dread running team meetings.

The stress he felt leading up to them impacted how he handled specific topics discussed during the meetings, and he often found himself being extremely reactive as opposed to proactive.

It wasn’t until his interactions with Profit For Contractors did he realize his lack of structure and focus was the reason the team meetings were not successful. Scott didn’t know how to properly lead his team in this scenario and therefore communication was often skewed or lost in team meetings.

 

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“We know poor communication can unleash an array of issues when it comes to running a business”  Tweet This

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Scott discovered the simple Profit For Contractors tool that helped him change everything: “The Top 5 Money-Making Meetings Guide”.

With this tool he was able to:

  • Learn how to prepare for meetings ahead of time so that he is more proactive
  • Be a better leader to his team
  • Communicate effortlessly
  • Set agendas for meetings
  • Stick to a specific timeline so meetings were short, but effective and precise
  • Save 2-4% on their bottom line profits
  • Hire a new manager to take over the task of running meetings

 

The relief Scott now feels from knowing he or his manager are leading effective team meetings is life changing. Profit For Contractors offers simple tools to help you work smarter, not harder and in turn teaches you how to use these very tools on quarterly webinars.

 

If you are looking to change the way you lead your team meetings, and ultimately, make more profits, then join Profit For Contractors on our next education webinar June 27, 2017, at 11:00am EST.

 

If you have any questions concerning this topic, feel free to contact Profit for Contractors at 613-604-4531 or support@profitforcontractors.com

Technology-Worker-Tablet

Technology-based Systems— a new road to profitability

Technology has come a long way over the decades. It provides many options to allow contractors to better master their business. Almost every aspect of a contracting company can be systemized using technology of some sort.

Back in the day, there were far fewer tools to help you do daily work tasks. It was a lot more grit, brain power, and hands-on work to get the job done. It required working long days including evenings and weekends, immense stress due to keeping it all in your own head, and a tired body from always being on the go.

It doesn’t have to be that way anymore. Let’s compare:

THEN: picture the contractor who used a dull pencil and wrinkled papers crammed into an overstuffed folder to organize their day, keep their team accountable, hire new employees, and track their profits. Chaotic, right?

VS.

NOW: picture the contractor who uses a smartphone and tablet to systemize many aspects of their business; no mess, just a piece of technology tucked into their work pants, ready to tackle the day at the click of a button. Easy, right?

While there’s nothing wrong with using ‘old school’ methods to run and systemize a contracting business, it can create a bit of chaos if not done properly. Let’s face it, working solely on paper and in your own head can be tough— and lead to missed opportunities, and chaos in the office and job site.

Instead of sorting through dozens of papers scattered all throughout the company van, why not use a digital app to keep you organized and the company systemized?

 

“Almost every aspect of a contracting company can be systemized using technology of some sort.”

 

There are many examples of what technology can do for us:

Organizing our time: now we have Google Calendar, Self Control – one example of a free apps that can block distracting websites from you during the workday, and the ability to set reminders on our phone. After all, why keep all your daily tasks in your own head when you can see them in front of so that you never miss a beat?

Keeping our team accountable: now we have digital checklists connected to mobile apps for employees to use such as the free online tool Trello. We also have software that can track your teams’ work hours such as ExakTime. Why just assume your team is working efficiently without you being there— know for sure so that you’re paying your crew for the time and effort they truly put in.

Hiring new employees: now we have the Internet and plenty of sites to help us find the perfect candidates for a job opening. Kijiji, Craigslist, Indeed, Monster, and Workopolis to name a few. Why just post the print ad on your office window and hope people will drop by— post it everywhere so you get more opportunities to work with only the best.

Tracking profits: Now we can hire employees to use QuickBooks or put together easy-to-read spreadsheets in order to stay on top of our financials. Why just hope for profits when we can plan for them?

 

At Profit For Contractors, we understand the struggle of keeping it all in your own head and not having the time to look for technological tools to help you better organize and systemize your business. It’s why we’d like to help you.

On our upcoming FREE webinar: “Systems & Procedures to Help you get CONTROL of your Business” we’re discussing the top systems contractors are using to maximize profits, get control of their teams, and get time back. It’s happening Tuesday, April 25th, 11:00am EST. Save your spot today by clicking here.

 

If you have any questions contact us at support@profitforcontractors.com or give us a call at 1-613-604-4531.