Only contractors can understand what it’s like to deal with some types of challenges. There’s the bidding process. Then, getting customers to understand that paying a little more for your service is worth it, while also managing their expectations. You have to pull all the bits and pieces together and still manage to make a profit, plus all the other work you do. It’s not easy! But we have good news. HFS Financial is here to help make your job a bit easier. Here are 3 of the top pain points for contractors — and how to get relief.
The Bidding Process
If your bidding process is unorganized, you’ll probably see some obvious problems, such as losing out on profit because you missed items or miscalculated your bid. A weak bidding process trickles out and causes problems elsewhere, too. For instance, you could end up with a gap between jobs because leads aren’t getting generated or followed up on consistently.
So what’s the solution? Organization and consistency. Many contractors find the best solution to streamlining their bidding process is through technology. There really is an app for everything, and that includes managing your contractor bids! Some of the best bidding software comes with estimating calculators, invoicing tools, receipt trackers, punch lists, and more. Here are a few reputable ones to check out:
- SmartBid™ Mobile by ConstructConnect
- STACK® Takeoff & Estimating
Low-Ball Bids by Competitors
We know the frustration when you’re competing against low-ball bids by competitors who either a) won’t provide anywhere near the same service level you will, or b) have no idea what they’re doing and have no hope of making a profit at that price. If only the customers understood that, right?
Well, the good news is that many customers are savvy enough to look past a low-ball bid, especially if you show that the job you’ll do is worth the money. The biggest way you can do that is by managing your reputation. That means your name will carry weight in your area and customers will associate your brand with trust. But how do you manage your reputation? One easy and impactful way is by soliciting customer reviews. Also, managing your online presence is key. That means your website and social media platforms should be current and active.
Losing Interested Customers to Friction
Sounds complicated, but friction is one of the common pain points for contractors. Friction is a fancy word for any barrier that stands between a customer and your business. Some friction barriers are inevitable. However, you never want to be the cause of friction, if you can help it. Not following up promptly to a customer’s inquiry is an example of friction. While they’re waiting on your call, they may very well move on to the next contractor on their list. But you can limit that friction point with swift follow-up.
Financing is another big friction barrier for customers. According to a study by Discover®, only 25% of homeowners have the cash saved to pay for their home improvement project. That means up to 75% of your customers will need some type of financing. By offering a financing option, you can remove that friction barrier between yourself and the potential client. With HFS as your partner, customers can get financing quickly, so you get to move ahead with your next project quickly!
Read more on strategy to make your contracting business thrive. You Dream It, We Finance It — for whatever type of projects you handle. Are you ready to let HFS Financial work for you? Click here.