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Builders told to work smart to remain competitive
Too many builders across the UK are producing too many quotes which are yielding little return.
There’s no doubting the importance to be busy, however running around quoting for every potential piece of business can not only be counter productive but uses up an inordinate amount of time.
There is also evidence that many builders are lowering their prices to try and win the work, but means margins that are already tight are being squeezed even more.
It’s something Anthony Botibol, marketing manager at HBXL is fully aware of and believes many builders should assess how they go about quoting and winning new work.
He said: “By lowering their prices means builders are going to make a smaller profit. By under cutting themselves means making little or no profit, or perhaps even having to go back with revisions half way through the job. I’m not saying that getting more quotes out there is a bad idea however the quality of the quotes is vital.
“That’s why we advocate using our EstimatorXpress software which not only produces a professionally laid out quote but can do it very quickly. And because it lists precisely where all the money is going means users can explain to their customers exactly why a job costs what it does and do not have to lower their prices.
“One of our users told me that on one job he was £20,000 more expensive than his competitors and although he knew this he still didn’t lower his price because he knew he would be making a loss. But because he could justify the cost he still won the contract.
“By quoting higher ensures builders make a decent profit on one job over a 10 week period rather than making the same amount of profit on three jobs over 30 weeks!”
For builder and EstimatorXpress user Nick Orchard, the policy of producing quality estimates is exactly how he approaches quoting for new business across the greater Bristol area. Having launched his business, England’s Finest, in June 2008, he offers primarily kitchen and bathroom installation services but also general build to his clients.
And proof that Nick’s philosophy works can be found in numerous cases when he has quoted for a new piece of work knowing that the price he has given is more than some of the other quotes presented to the customer. But because of the quality and detail of his estimate meant he won the contract.
The reason for Nick’s success is the way he uses EstimatorXpress which allows him to prepare a detailed quote in less than an hour. Once complete he prints out the estimate which details precisely every single item for the job.
Nick said: “It’s pointless spending huge amounts of time preparing and producing estimates in the hope that they will bring in the business. The only way to become more competitive is to use this sort of estimating software.
“It not only speeds up the whole process but enables me to produce quality quotes, which, more often than not, wins the work. Being able to demonstrate to the customer exactly where their money is being spent goes a long way to securing their trust and ultimately their business.
“Because of the software I can also produce more quotes, more quickly and when you combine that speed with the quality makes for a very competitive package.”
The result for Nick means he now has two full time employees and is just about to take on an apprentice and considering he launched his business in the depths of recession is a great achievement.
Anthony added: “Nick is an excellent example of someone who uses his time well. Not only can he turn out a quote very quickly, but because he uses EstimatorXpress means it is totally accurate.
“It’s this use of IT that has made Nick highly competitive in his area and is why he’s doing so well and able to take on more staff – we wish him well.”
For further information on any HBXL product please call T: 0845 1234 065 or visit the web site www.hbxl.co.uk