From our “Keys to a Successful Bid Strategy” blog post in April, you read about the different types of questions to answer about your company and your crew in order to begin crafting an effective bid strategy. Now that you have completed the assessment, you can apply the information and start winning more bids.
Please keep in mind, the keys to success are having a plan and tracking your progress. You may need to reassess your company and crew as often as monthly or quarterly and then adjust your strategy accordingly.
For example, if you want to start working on more industrial projects, then you could hire an electrician with a specialty in industrial controls. Start tracking the results from the industrial projects you place bids on and the outcomes of completing the projects. From there, you can make an educated decision about which projects your company proves to be most profitable completing.
Let’s get started on creating your strategy:
Bid/Hit Ratio: You’ve nailed down the number of projects you bid on compared to the number of projects you win. Below are more specific lists you need to be keeping track of as well:
Keep record of your bid/hit ratio for:
- All bids proposed
- Each customer separately
- Jobs that are similar: in size, type, location, and even by specs
Take a good look over the data you compiled and ask yourself, “What are the trends?”
Trend Assessment
1) Our company is most successful with “X” # of jobs per year/ per month.
2) The types of jobs we should focus on bidding:
3) Whose bid lists do we need to be on?
4) Each type of bid vs. contract quantity (your ratios)
Also, take note of square footage costs, competition, and current market conditions that affect your bidding outcomes.
By: Liz Zofka