Making the Bidding Process Easier
Bidding on new projects can be time consuming and frustrating. You don’t want to underbid and lose money, and you certainly don’t want to overbid and lose the project.
Bidding doesn’t have to be so difficult, though. How can you make the bidding process easier, and what tools will help the most? Keep reading to learn how to answer that question.
Get to know the job
The more details you have the more accurate your bid will be.
Don’t be afraid to ask plenty of questions if you have them — the specificity will only help you craft a stronger bid. You can also use this time to determine whether the customer will be easy or difficult to work with. Asking questions is a great way to vet the project and the people you’ll be working with.
Use construction bid software
Construction bid software is generally affordable and can make bidding on projects infinitely easier. Many versions come pre-loaded with a database of construction costs that are updated regularly, and you can also maintain your own database for job costing.
If you’ve never used this type of software before, here are some of the top options available.
How much should I mark up my bid?
You need to make a profit, so you’ll want to add more money to the final cost of your bid. If you aren’t making any money off of the project it’s not worth your time.
One builder suggests a 15-25% markup after the job’s raw cost. According to Construction Programs and Results Inc., “The typical remodeling contractor will have overhead expenses ranging from 25% to 54% of their revenue–that means every $15,000 job could have overhead expenses of $3,750 to $8,100.”
Simply put, don’t undervalue yourself and what you can deliver.
Consider delivering your bid in person
You can email or mail your bid, but if you have the opportunity to present your bid in person, take it.
This gives you time to walk the customer through each item while developing a rapport right off the bat. They can ask questions, voice concerns, and you can explain why certain items are priced the way they are. If you do send your bid via email or mail offer to meet in person to go over the paperwork.
Get the tools you need to make running your business simpler
If you’re still doing business surrounded by piles of paperwork, it’s time to clean things up a bit. New apps, software, and other technology can make running your business much easier, and that includes the bidding process.
Here are some mobile apps you can download to help run your business, and those are just the beginning. Google Drive deserves a special mention, because using it makes managing all of your documents much, much easier. You’ll be able to access your bids on the go as long as you have access to data.
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