Monthly Business Growth Tip - August 2012
6 Tips to help you improve your Quoting for jobs
The art of quoting doesn't come naturally to all business people so here are 6 tips as to how to improve your business profitability through successful quoting. Learn how to operate smarter and through the process get yourself a better performing business.You may think that some business people seem to get all the jobs they quote on but in reality it's not always the case. But when you analyse what they do do you'll find there are a few common features that you can implement in your business too.
1. Be Specific & Helpful
1. You need to use the quote to sell yourself or your products or services
2. Explain advantages of your product/service
3. Use testimonials, referrals, other industries/businesses you supply/service
4. Give a guarantee or warranty
5. Advise an approximate delivery date and time
6. Include your Terms of Trade on the back of the quote - if you're in the Building Trade this may include a reference to the Construction Contracts Act
7. Make it clear whether the prices include GST or not - if you're not registered for GST point this out
8. Make the quote valid for a certain length of time '- e.g. x number of days
So for example if you're a painter don't just put on your Quote
'Painting as requested and discussed'
Making it this vague will open you up to all sorts of potential disagreements and misunderstanding as to what should have been done and what was done.
Put in detail what you are going to do such as;
Redecoration of Walls & Windows in Master Bedroom & Ensuite Bathroom as requested.
Remove existing wallpaper and sand down existing paintwork to preparation quality.
Apply 1 undercoat to all surfaces.
Apply 3 Topcoats to Bedroom walls, scotia and skirting, using water-based Dulux paint
Apply 3 Topcoats to Ensuite walls scotia and skirting using Oil-based water repellent Dulux paint
Prepare and Hang wallpaper on bedroom walls
Strip paintwork on window frames in Bedroom and Ensuite and apply oil-based undercoat and oil-based topcoat.
Work will be completed over 3 days and we will work with you to ensure minimal disruption takes place.
All rubbish from existing wallpaper removed and floors vacuumed on our completion of work
Customer to advise colours to be chosen and we will purchase the paint and wallpaper on the customers behalf.
50% Deposit required upon acceptance of this quote and balance to be paid within 7 days of completion of job.
2. Don't be afraid of your Competition
Be honest and friendly, make helpful suggestions as to the job and provide some advice that the customer may not have thought of, show you are knowledgeable about your service or product, have a nice smile, clean & tidy appearance, make sure you've got clean teeth and a pleasant breath. Make sure your work vehicle is clean and nice and tidy and don't badmouth your opposition. Don't even mention them as people will become suspicious of you if you do.
If possible use a computer to type up your quote as this gives a very professional presentation and shows you mean business.
Often you will find the customers will actually only get 1 quote and if you get in quick and satisfy their need you'll likely get the job - so don't be afraid to charge and don't worry about what your competition may do.
Send them a gift with the quote to encourage them to choose you. A great gift to send is some sort of food item like chocolate as the old saying says 'The way to a man's heart is though his belly.'
3. Ask for Deposits
Ask for deposits - don't be afraid to do this. Write it on the quote as we have suggested above. We often find business people are afraid to do this but once you train yourself to do it, it becomes very easy. An easy way to break in the request is to have it clearly stated on your quote so people see it and when you ask for the deposit they are expecting to be asked for and aren't taken by surprise. And show your Bank account number on the quote so people can see that they can pay by Internet Banking which is becoming more and more the preferred method of paying bills.
If you accept Credit Card payments then put this on the quote as well.
And remember that if the customer can't afford the deposit then this does raise a question as to whether they can actually afford this job to be done and whether you will even get paid anything at all? In a certain sense it's a good credit check on whether or not the customer will be able to pay you.
4. Add extra value and charge more
Look for ways to be able to charge extra - if they want extra work done that is not in the quote then charge for it - point it out at the time and tell them there will be an extra charge.
And if you have submitted a detailed quote you are setting it out clearly what the customer can expect to be done. So if in the example above the customer also wants to have the doors painted in the Bedroom and Ensuite and the ceilings to be done as well after you have started you can say 'Yes we are very happy to do that but it isn't in our quote so there will be an extra charge' and mostly people are reasonable enough to accept that. Whereas if you had just said 'Painting as requested and discussed' then it leaves the door open for all sorts of misunderstandings as to what is to be included in the painting job and what isn't to be included and this is where misunderstandings and disputes can arise.
Also remember with Architects that they often change the plans of a project to what they specified at the start and so you may be able to charge more for these alterations to the job. Once again if you make sure your quote is detailed then you can point out that the extras aren't included in your quote and will cost more.
Do the job on time and as requested and you'll get your customers coming back to you for more.5. Keep your promises
6. Monitor your Quoting success
It is very important to keep a record of your quotes - know how many you win and how many you lose - use a CRM system like our PROHUB CCM. If you are only getting 5% of your quotes then something is wrong - can you drop more margins just a wee bit to win more jobs? If you're getting more than 50% of your quotes then that's good.
Keep a record of jobs done and record a future date when a customer may want to buy from you. So in the case of the painter set a reminder to contact the customer in 4 years time to contact them and see if they need more painting done. Even if you miss a job put a reminder to follow-up them up in 4 years time - they may choose you next time and they will almost certainly remember you from last time.
Most importantly learn from your mistakes and don't repeat them. As the old saying goes 'It's not how many times a horse falls down that counts, it's how many times he gets up again.'
Successful business operators are masters at getting the small details correct every time and it's up to you to become a master at this too. Be willing to change and take on new methods and you'll find you'll learn a lot and have a lot of success on the way.
All the best with your next quote.
Monthly Business Growth Tips Disclaimer
Important: We cannot be held liable should Clients act solely on the basis of the material contained in the Monthly Business Growth Tips. Items herein are general comments only and do not constitute nor convey advice per se. The Monthly Business Growth Tips are issued as helpful guides to our clients. We cannot guarantee that your business will grow if you follow the guide of the Monthly Business Growth Tips as many other factors that can lead to decline are not necessarily influenced by making one change to the way your business operates.