How To Respond to A Prospect Who Rejects Your Cleaning Proposal
A cleaning business owner asked the following question.
Question: I'm interested in your feedback regarding the best way to handle bid denials and the feedback regarding the bid.
I recently bid on a fairly large production facility and though I feel the price was more than appropriate, I was told that the price was much more than they were currently paying.
What is the best reaction to such feedback? Do you try to lower your price some to get in? Do you just accept the "no" and move on? Should you fish for more information?
I asked the company if our bid was significantly higher and they said yes. I asked if the services included in the contract were the same and they said yes. I asked if there was a budget they were attempting to meet that we could possibly attempt to meet if possible and they said that they wanted the service cheaper than their current provider (however, they did not disclose that information). I did highlight our commitment to excellence, provided several excellent references form our best customers, and assured them they would be extremely pleased with our service and they still were focused on a "price beat" mentality.
What are your thoughts, feelings, practices, etc.?
Dick Ollek, cleaning industry consultant and author of Selling Contract Cleaning Services 101 offered this advice:
I'm not sure there is a lot you can do on this one but I have a suggestion for the future. They will always tell you they were comparing apples to apples even if they weren't.
One thing you can always try. "Your business is extremely important to us and I want to learn from my unsuccessful attempt this time. Please tell me how far I missed on price and what else I could have improved on in my proposal and presentation. I want to eliminate those mistakes in the future so I am asking for your help. I respect your opinion and I want to improve my processes".
My approach has always been that we provide proposals rather than "bids". When you approach it in this manner you can go to the prospect and indicate that you would like to develop a program that meets the budget they are wanting to meet. Then you ask for a budget dollar they have in mind so you have something to work with. Some obviously won't give it to you.
If they still want a "bid" we ask for the current specifications and ask for an appointment to deliver our proposal to discuss our professional approach to their needs. Then we will produce an alternate proposal along with the original that they requested. When delivering the proposal you present both sets of specifications and investment amounts. You show them exactly what the differences are.
I then would give them a "ballpark" number of both alternatives and ask, if they didn't give me their budget, if we have addressed their budget concerns. I remind them that it is only a "ballpark" number and if they will tell us what they are looking for in dollars we can tell them in a hurry whether we can reach that number or not. If they say no again to giving us their budget, we tell them that their business is VERY IMPORTANT to us and we want to do everything we can to meet their needs and now will they give us a budget number. If they still won't, you have to decide whether to walk away. If you say "we'll match any price" you have cheapened the service you have to offer and you then become a commodity.
Even if you don't get the business, you will leave them with the impression that you are a very professional company and I would venture to say you will be their preferred provider next time.
In approching your prospects as a professional company wanting to offer proposals rather than give "bids" you may not close them all (in fact, you won't close them all) the first time but your follow up close rate the next time will be far greater than if you are just another "bidder" next time.
Now having said all that, my comments are based on the fact that you have something to offer a prospect other than price, such as as one of a kind training program, a 24/7 way for them to reach you, a distinctive screening process for new employees etc. and that you are selling those features during your presentation. Anyone can sell price on a "bid" process.
One additional thing. Write a letter to the prospect thanking them for the opportunity to present a proposal and ask them to please consider you again next time they are reviewing their needs and budgets.
Dick Ollek, CBSE has been in the Building Service Contracting industry for nearly 45 years, 34 of them owning and managing his own company. He currently serves as owner and Senior Consulting Partner for Consultants In Cleaning, LLC, Camdenton, Missouri. He is also author of Selling Contract Cleaning Services 101. He can be reached at 602.684.8877 or at [email protected] or www.consultantsincleaning.com
Copyright TheJanitorialStore.com. All Rights Reserved
