Contracting is back. You’ve got more work than you can handle so you stop quoting new jobs in order to catch up. But what happens when you’re all caught up and you don’t have any jobs in the pipeline?
It’s not new news, yet contractors everywhere need to be reminded: as the housing market gets back in action and the retrofitting industry sees increased demand, there’s a serious need for contractors throughout the nation. At the same time, the industry is still subject to a lingering labor shortage that’s making it tough for contractors to take on all the work they’d like while providing the top-quality service they promise.
There’s the challenge. A challenge — boiled down to an increased demand for services and a lack of supply in workers — that creates a problematic situation. One where many contractors stop quoting (“We don’t need the work right now!”) or deprioritize quote turnaround (“It can wait, we have other priorities.”)
When the quotes stop or slow, it will eventually lead to an even bigger issue: a dried-up sales pipeline that takes months to rebuild, if the opportunity to rebuild is even there. Don’t think this applies to you? Read on.
What happens when you stop quoting
When the schedule is full and resources feel scarce, it’s normal to resort to a halt in quoting. We’re here to tell you this: putting a stop to quoting means taking the easy way out. An “easy way” that’ll cause your contracting business a whirlwind of angst in the future when your current funnel dries up and you need those sales.
In order to understand the true impact of what happens when you stop quoting, back up. Take a look at the big picture. Right now, you’re swamped. Your focus is on putting all of your resources toward fulfilling current projects, ignoring the leads knocking on your door. Short-term focus tells you that it’s the best method in order to satisfy current customers and get ahead.
But when you back up and take the long-term view, you’ll see the fault in this method. Sure, you’ll satisfy current customers. In fact, if you do it right, you’ll likely increase retention and referral rates.
Look forward to a few months later, though, and you’ll find yourself panicking when it comes to generating new business to keep the revenues on the up and up.
When that happens, you’ll turn to marketing and sales to turn up new leads and close them. This means money and resources unnecessarily spent on increased marketing, and a likelihood of accepting projects that aren’t ideal for your business in the simple attempt to build the pipeline back up. The worst part? Qualified leads that were on your doorstep and in your inbox mere months ago were squandered.
This isn’t rocket science. It’s something we see each and every day in the contracting industry, amongst our peers and our clients. Luckily, we have a solution.
Don’t stop quoting; do this instead
As you could probably guess by now, the solution to having more work than you feel you can handle is not to put a temporary end to quoting.
The answer: dial down the lead sources.
Here’s what we see in the industry: contractors focusing resources on generating leads from a plethora of sources, but not quoting those leads when they come through. Leads aren’t the issue — the demand is there. The issue lies in the quality of the leads. It’s easy to pass up leads and let the pipeline dry up when the leads don’t make you want to lay out the red carpet.
Now, what if each and every lead generated was highly qualified? We’re talking ideal clients; repeat customers; top-notch referrals. You’d find yourself with less leads, sure — but leads that are more likely to convert, and stick around for the long haul.
Skirting the “we can’t do it now” issue
Dialing down the lead sources is just the first step in keeping the sales pipeline full when you already have your hands full.
The second step is knowing what to do when those high-quality leads come through.
First: continue to turn quotes around quickly. Equip and empower your sales team to provide on-the-spot quotes. Creating a mobile sales team gives your customers instant gratification when it comes to quoting, a differentiated (and exponentially better) client experience, and a professional, personalized estimate tailored to their company. (That’s what we here at JobFLEX specialize in – we’re passionate about helping you create the best possible experience for your clients from day one.)
Second: when delivering the professional quote either on the spot or on the same day, be transparent. Tell your potential customers you can’t do the work for 90 days, or whatever your timeline might be. If you’ve handled the communication and quoting process right from day one, you’ve already shown them your caliber of service. As a highly-qualified lead, you know they want to work with you. Be honest, and at least half the time, those customers will sign the deal and wait patiently because they can trust you. Honesty is always the best policy. (Just like your mother always told you.)
What happens when you don’t quote
Maybe it goes without saying, but if you don’t quote the work, you give up the chance to have qualified customers waiting patiently in your pipeline. The percentage of business you earn when you don’t quote? A big fat zero.
Don’t take the easy way out. Conquer the labor shortage; take advantage of an increasingly healthy building and retrofitting market; build a pipeline that keeps your business booming for months and years to come. It starts by keeping the door open no matter how full your plate is, and delighting customers from day one.
