Altering the Way You Present Residential Bids Can Make Your Business More Profitable

In a booming economy, most established contractors are having no problems finding projects. In fact, in many parts of the United States, phones are ringing off the hook with homeowners inquiring about the installation of new lawn sprinkler systems.

But just because the economy is good doesn't mean that customers have stopped shopping around. Most homeowners are still getting 3-4 bids for a new irrigation system. Everyday, contractors are challenged to find ways to make their homeowner presentations more effective and make their bids – and their companies – stand out from the rest of the pack.

A Good Presentation Is a Hands-on Job

How do you get the customer more interested in your presentation? Answer: spend more time with the prospective client, one-on-one, explaining the project.

"I like to let my customers handle the items they are planning to buy," said Tenney Doble of CT Doble Irrigation in Duxbury, Massachusetts. "I explain the features of each of the heads, the valves and the controller."

A successful "hands on" salesman is careful to point out features that the customer cares about (e.g., spring retraction sprinklers that disappear from view when not in use, timers that have simple operating features that are easy to understand). A hands-on presentation is also a time to offer uprgrading options that can deliver more dollars to your bottom line.

"I let them feel both the standard PGP and the I-20 with the upgraded stainless riser, then ask for their impressions – their perceived differences – of both," explained Doble. "Of course, they always tell me how the I-20 feels 'beefier' and 'heavier.' I explain to them how it is a commercial-grade product with a better guarantee and before too long they are sold on this product."

Doble said that his goal during the bidding presentation is to involve the customer as much as he can in the system's design processwithout confusing them, of course. "We educate them so they have a better understanding of what's going on. That way they can feel they are playing a vital role in the installation, rather than just coming along for the ride. This gives them more confidence to make a decision to upgrade products, rather than simply buying off on what we recommend."

Differentiation Lets You Stand Out from the Pack

Walz Irrigation of North Platte, Nebraska has adopted a philosophy of offering top-of-the line products as a way to set their company apart from others in the market.

"Instead of presenting the homeowner with a bid that has a standard rotor, we go right to the I-20 Ultra," said owner Dave Walz. "The I-20 Ultra costs us only a little more per head, but we can market it as a superior sprinkler with heavy-duty features and a longer warranty. We use a similar strategy in selecting the ICC controller which provides advanced programming capabilities and ease of use for the homeowner."

Walz said that his firm almost always comes in as the high bid, but he noted they are also the only bid that the customer can consider to be a "value added" bid.

It Pays to Accessorize

"Selling up" is one way to make your bid more profitable. "Adding on" is another.

"We install a good deal of SRC controllers with our residential customers," said Cary Glase of Tree Top Irrigation in Wichita, Kansas. "Its list of great features for an economical price makes it an easy sell. And since we don't have to spend our time convincing the homeowner what a smart buy the controller is, we can focus our sales pitch on getting them to upgrade their system with time- and effort-saving accessories like the SRR remote control."

Glase noted he explains to customers the benefits of how paying just a little bit more for a remote control can be of value to them. "System checks become quicker as trips back and forth to the controller are eliminated. Customers can start a zone or run a program manually without accessing the controller. And when the customer is away, a contractor can winterize their system without entering the home or garage. When all is said and done, they have no qualms about spending a few dollars more."

In many parts of the country, contractors have long sold the add-on opportunity of the Mini-Clik rain sensor, which turns off the homeowner's system in rainy weather, saving water. These professionals report that the Mini-Clik, when offered as an additional-cost upgrade with a standard estimate, can often yield a 10% increase in job profits with only a few extra minutes of installation time.

The "Hollywood" Touch

It's the newest way to increase your company's good reputation with every installation. Each time you install a new system, make sure the homeowner gets a copy of your personalized video tape Maintaining Hunter Sprinkler Systems. This helpful "video owners manual" can include adjustment and maintenance information on the specific mix of Hunter products you install on your projects.

"It's a valuable upgrade that we offer that our competition can't match," said Dana Sweet of Advance Lawn Sprinklers in Ashland, Virginia. "The customer gets a video with our company's name on it that walks through every aspect of their system – how to adjust the heads and how to program the timer. It makes the customer more confident in using the system. Best of all, because the customer gets their questions answered by the tape, it has actually cut down on our service callbacks for new installations."

Videos are just the latest example of how contractors successfully maximize their profits on each and every job (see the story in this newsletter that details how to order these tapes for your company). But, however you choose to sell up, add on or offer your customers "something different," you'll find that the road to increased profitability is paved with a winning residential bidding strategy.