5 Tips to Winning the Landscaping Bid

When times are tough, bidding low on a landscaping job may seem like the only way to acquire business. But with the right strategy, landscaping contractors can justify a competitive and profitable price to homeowners.

“We’re not going to cut corners,” says Kevin Fontaine, co-owner of Fontaine Landscaping, Inc. in Cary, N.C. “It’s important not to compromise your company’s vision and values just so you can earn a quick buck.”

To win a bid, you’ll have to justify your price by demonstrating the quality of your work and service surpasses your competition.

Scope out the right bids
Before you submit a bid, decide whether pursuing the job is worth your time.

Scott McAdam, president of McAdam Landscaping in Forest Park, Ill., recommends determining how a customer found your company. If he or she was referred to your company then there is a good chance of you actually getting the job. If the customer already has a landscaping plan, they probably are searching for the lowest bid and you may be bidding against many people.

“If this is the case, the customer may just be a price customer, so it may be a waste of time,” he says.

On the other hand, if you’re working with a client to design a landscape plan, or if the potential client says he’s familiar with your work, the odds you’ll win the bid increase, McAdam says.

“If a customer is a relationship customer, then you will have a good chance on getting your price, but you must deliver the quality and service they expect,” he says.

Bid accurately
Fontaine says he uses landscape bidding software that measures every facet of a job to bid carefully and accurately. He first takes measurements manually, and then enters the information into an elaborate spreadsheet. The software calculates the time it takes to complete a specific task—like mowing 80,000 square feet of grass—given his measurements,t he efficiency of the equipment he is using and average employee labor rates. He says contractors should “measure twice and cut once,” so you can carefully determine your numbers and then cut the costs more accurately if necessary.

McAdam also stresses the importance of careful bidding.

“Be wary about how you’re bidding it, know your costs and bid for profit,” McAdam says.

McAdam adds that you can’t price a job unless you know the amount of your direct, indirect and overhead costs. So if you’re not aware of the costs and potential profits of a project, you need to hire someone, like a consultant or a CPA, to help you develop a budget, he says.

“You simply cannot deliver a quality project and expect to be around if you do not know if you are making money,” McAdam says.

Provide evidence of high quality and service
Offering credentials will help justify your services and your price. Fontaine says he stresses his reputation, longevity, experience, capabilities, licensing and insurance to differentiate himself from the competition.

“[Those are] basically all the hoops a company has to go through to become truly qualified for landscape contracting,” Fontaine says.

Provide potential clients with pictures of past projects, proof of certification, testimonials from your clients and a list of references specific to the project, Fontaine says. If you’re bidding on a project to build a patio, for example, provide the contact information of people who are satisfied with the patio you built for them and are willing to put in a good word for you.

Fontaine often directs potential clients to his Web site, which identifies jobs the company has completed and features client reviews and photos of those projects. Tailoring these resources to the task will emphasize your experience and ability to do the job well, he says.

Fontaine also emphasizes his company’s vision and passion for landscaping, the environment, customer service, community service and commitment to sustainability.

“Convey that the staff and the customer are going to be proud of the work,” he says.

Present yourself as a professional
Presenting a positive image is vital to winning the respect and trust of a client, which can ultimately win you a bid. So make sure you, your staff and your vehicles look professional, McAdam says.

“The buyer today is so much more sophisticated than 10 years ago,” McAdam says. “If your truck is falling apart, if you’re not clean, if you’re late, you’re not going to get the bid.”

Focus on the client’s needs                     
A potential client is more likely to accept your bid if they’re comfortable with you, so it’s important to respond to their needs and concerns.

“If they get a good feeling with you, though your price is little higher than the competition, you may still get the bid,” McAdam says.

Responding quickly to the customer’s concerns and performing warranty work is key to retaining a good customer, he says.

To keep bids coming, Fontaine provides seasonal discounts and rewards clients who refer his company to others with $50 to $100 in “Fontaine Bucks.” The money can be used toward the client’s current or new project.

“The best advertising is word of mouth from a happy customer,” Fontaine says.