Barb Helfman
Helping Plantscapers succeed.

Archived Entry

They’re Putting it Out to Bid? Oh, No!

Posted on December 29th, 2007 in General, Competitive Advantage |

 Bet that got your attention, didn’t it? 

It is every Interiorscaper’s nightmare.  You bid the job, got the job, installed the job, and now 3 years later, they tell you that the job is going out to bid–again.  Right away alarms go off in your head.  What did we do wrong?  Are we charging too much?  I knew we should have changed out that orchid sooner.  Yep, all these thoughts and recriminations go through your mind.  But that’s not bad enough–not nearly.  Give yourself another few hours and the panic really sets in.  We’ve got to keep this job.   We’ve got to keep this job.  We’ve got to keep anyone else from taking over this job.  And, the variation, This job is my  job.  Nobody else’s.

O.K.  That’s Day 1  
After you run around screaming and shouting for the first 24 hours, you need to take a deep breath and come up with a game plan.  First, do you have any idea as to why the job is going out to bid?  Is it because a new  contact person came on board and does this as a matter of fact, or wants to show how savvy and cost conscious they are?  Or is it company policy to put all services out to bid every three years?  Or, is it that they have been mandated to cut all costs by X% across the Board?  Or, has a rival IP firm walked in and promised them lower prices, better service and a free back massage every Friday? 

The reasoning behind the action is all important.  Potentially it is the route to salvation or, if misdiagnosed, the route to ruin.  Ask why.  Yep, just go in and ask.  You may find that it is the third year and policy demands going out to bid every three years.  Or, you might learn that someone just can’t stand "corn plants".  You get the idea.  You can address the situation once you know why.  Then, if you cannot find out the reason or if it is a cost lowering situation check out the following.

For Every Action a Reaction  
First, let’s see if we are actually making money on this account.  You can’t kill yourself to keep something that is a detriment or costing you money, nor can you lower a fee if you don’t know how low you can go before cutting in to heart and lungs.  Do a really detailed analysis.  Next, analyze the job to see if and HOW it could be done so that you could lower fees and still make money.  In other words, could it be maintained every other week?  Or with fewer people?  Could the Blooming Program be adjusted?  Are there other locations you are currently not maintaining that could be added? 

Make New Friends but Keep the Old 
Each company, no matter how large or small, should have some standard reactions to potential loss of a client.  If it is a price thing, see how you can reengineer the account and lower their charge.  You also should have on hand a letter you can send.  The letter should be one side of one page, on recycled paper, and it should let the client know that you understand why they want interior plants and service.  If they have clients that visit the space, let them know you always make sure everything projects the healthy, client oriented surroundings they want to project.  If you do their Holiday, renind them all the great comments they receive from their clients about the tree etc.  Reiterate in this letter that you value them as a client and are anxious to please and if there are any concerns you would like to discuss.  If you have come up with suggestions for them about redoing some aspect of the job, ask for an appointment so you can discuss.  You get the idea.

Keep Your Wits About You   
And every so often, the contact is not the instigator and is on your side.  If the specs have yet to be written for the bid package, offer to help write them.  The more involved you are the better.  And, lastly if your relationship is really strong, ask for a "last look",  That means that if neccesary and allowed you could submit another bid after you find out what the other IP companies are bidding.  This doesn’t happen often, but it does happen.

Meanwhile, it is a New Year.  Curt and I wish everyone a Happy, Healthy, and Prosperous 2008!

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