Bidding in your Sweet Spot

Do you know your estimating sweet spot? It’s where you find advantage for profitable negotiations, where you know your strengths and weaknesses, and where you gain insight for best profit on any job.

As important and valuable as that information is, there are contractors who continue to leave questions unanswered and money on the table. Think on it … after spending time and effort to takeoff plans, collect quotes, produce an estimate, and submit a bid on time, are you ever left scratching your head? Do you find yourself wondering, “Did I miss something in that estimate that will cost me later?” or “Do I even have a shot at winning this bid?” or “Is there enough profit in there that will keep me out of trouble?”

By answering one question, “Do I know my estimating sweet spot?” you can better answer many questions that will help determine your short- and long-term success because you will know:

• What type of work you perform best (where you are most profitable)
• Which parts of a build are a perfect fit (i.e., expertise in labor or kind of build, such as hospital or plant)
• Which bids are won and which are lost – and why, whether on price, who competed, owner preferences
• Type of owner/client (pays on time, good relationship with vendors, positive track record with finances and safety, etc.)
• That owner/client understands your type of work, handles meeting coordination well and is easy to do business with

There are other “knowns” that can make up a sweet spot, but insight into just one of those elements can reveal critically important clues about better ways to manage business, including when and where to bid and find more profit.