You Didn’t Lose Your Last Bid Because of Price – Part 4: The Proof

If you’ve been reading our series “You Didn’t Lose Your Last Bid Because of Price” maybe you’re thinking that what we’ve discussed about proposals, presentations, and debriefs is nice, but only in a utopian society. Well, we have proof that we’re not crazy and, that you’re not the only one thinking this concept is too good to be true.

In a recent article in ABC’s Construction Magazine, a friend and fellow SMPS member, Sylvia Montgomery of Hinge Marketing, cites that 58% of the 500 A/E/C (Architecture/Engineering/Construction) firms polled believe cost is the most important selection criterion for their buyers. However, buyers cite reputation as their top priority (42%) with price listed as a distance second at only 28%.

The article states that most A/E/C firms say word-of-mouth is their primary method for obtaining new clients, validating the buyers’ priority on reputation. Another distinguishing characteristics of winning firms, besides reputation, is educating prospects and clients on the nuts and bolts behind the costs. Buyers want an expert and, if you present yourself like one, cost will not be the bottom line. In contrast, a similarity in the runner up firms was a low priority on education.

You need to align your priorities with your clients and prospective customers priorities. In today’s market that means reputation and education, not just price. If you are not distinguishing your firm as an expert and differentiating your firm from your competition then your prospective customers can only use price as a determining factor.

Once again, the brand triumphs over low price.