Selling Construction Services is a Quantitative Process

By Matt Stevens

Selling construction services is a largely quantitative process. This is no surprise to some who have used a numbers- and sequence-based system successfully. Given the fact that many contractors have had to be the salesperson-in-chief while managing existing construction projects, it is understandable that the use of a personality-based sales process is of little value in construction contracting. Contractors like a numbers- or process-based system because it’s easy to manage in the blur of acquiring, building and tracking projects.

Most construction service buyers purchase based on fact and focus. Remember, this is one of the largest purchases most people make (if not the largest). They are careful and sober, not emotional. The sophisticated (many times, wealthy) buyer is a product of bad experiences. His or her radar seeks facts and truth, not large claims and promises.

We are in a hard business that penalizes the careless. If you over promise, that can be a financial problem in our low-margin industry. Covering up for mistakes by selling more may work for a distributor but it is impossible for a construction firm. Most, if not all, projects must make money since we are in a 4% net profit before tax, variable-cost business. There is no room for guesses or unpriced promises. The business is too lean and the liability risk is almost unlimited.

Take a minute and think through your best projects. This is a good exercise. To start, a great understanding of the technical issues of the job was known before a proposal was submitted. The estimating and pricing process covered all the dangers and windfalls involved. From there, the customer understood exactly what they were getting. There was little miscommunication as to scope, speed, price and especially, quality and safety.

Value engineering was offered for a couple of areas. The V.E. savings were projected with confidence due to experience and knowledge of the alternative materials and methods.

 Typically, the project started after a thorough study of the plans by the field management. Also, the project was executed with standard construction processes familiar to the company, including the field team.

Don’t forget, on the best projects (based on cost, time, quality and safety) the company probably was working with a repeat client who knows and trusts the contractor.

Thinking back to the selling process, it would be smart to replicate the sales process of these best projects. Stated differently, how do you make sure you have the best client, project information and business situation before you proceed?

You can be certain that the sales process should not be an emotional one – where the client is charged up for a week only to be let down by the reality of construction. No, to do so only allows the client to be disappointed.

From my research, consulting work and observations, I have concluded that there are six steps to be followed in the sales process. Different people call them different things. However, these steps perform six critical functions to landing an above average project. My next column will concern this selling process in construction.

 If you can quantify something, you can monitor performance easily. That’s something to remember when your salesperson's whereabouts or progress is uncertain.