Many factors determine a dealer’s bid win rate but tracking them in real-time is a major challenge. Your ERP system only provides data on the bids you won, not your missed opportunities. AutoQuotes is of no assistance either. While calculating an aggregate win rate manually might be possible, creating detailed analytics around driving factors is virtually impossible without better software.
If you have a sizable bid operation, even a small increase in your win rate can lead to large gains in revenue and profits. See below.
The factors that drive bid performance include: General Contractor and Design Consultant Relationships, Competing Dealers, Price, Project Size and your Sales Pitch. By adding these factors as project attributes, the Centerpiece platform automatically identifies what factors are driving yours wins and losses. With this information at your fingertips, a dealer can strategize on how to improve performance and increase profits.
Let’s break down these factors in more detail.
General Contractor's and Design Consultants
Understanding your strong and weak GC and design relationships is important to increasing your win rate. Sharing data on bid volume, win rate and "value engineering" success stories with these groups will build trust and help you understand what needs to happen to improve these relationships. The best way to win a bid is to avoid bidding in the first place by getting pre-selected or receiving the last look.
Certain competitors will have different cost structures -- they might be in a different buying group, have local installers or in-house, low-cost fabrication. They may also have different margin requirements. Understanding who consistently beats you and by how much is critical to optimizing what you bid on and at what price.
Price is almost always the most important factor in securing a bid so if you don't understand the market price and how it's trending, you will always be a step behind.
With any project, there is opportunity to make more money AFTER you win the job through better buying, installation, value engineering and change orders. Typically larger jobs present more of these opportunities. Accurately projecting your realized profits versus your quoted profits based on these opportunities is critical to ensuring you price your bids correctly.
Price is important but so is how your team sells their capabilities and service. Certain offices, teams and individuals will be better at this than others. Tracking these variances is critical to identifying best practices and training opportunities to ensure your company is always putting it's best foot forward.
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