Stop Business Suicide in Construction Marketing

Since the 2008 recession hit the construction industry hard, many construction companies have been struggling to break even, let alone make a profit. One of the major problems has been the way competitors under price and under value projects just to win the work and then, when they are on site, they suddenly reveal all the hidden extras. Alternatively, they turn out shoddy work because of false cost cutting exercises and value engineering, bringing the finished project to an unhappy conclusion for all concerned.

In today's construction marketing climate, cash rich construction companies are often pricing contracts below profit margins, just to pick up the work leaving smaller companies struggling to win anything at all. In situations like this, the only way to win a contract over a lower priced competitor is to demonstrate to your potential client that you deliver a service that is far superior to that of your competitors.

In a time of economic difficulty, clients in all sections of the construction industry are looking, not just for value for money, but also a first class service. Cashflow is a problem for many developers and contractors and contractual terms are becoming too severe for some.

However, this kind of environment is not sustainable in the industry because more and more smaller contractors will go our of business and the standard of works completed will require remedial works down the line, costing the end user even more money.

So what is the smaller contractor to do? You can offer a service above and beyond the call of duty which will focus on a solutions based service that will bring huge added value for your client who is looking for a hassle free completion for their project. Offering low cost, high value services is a good way forward.

Sensitive construction marketing can steer your company through troubled times by focusing on some easy to adopt key principles:

Firstly, by building good relationships with people in related construction trades. The smaller company has an advantage here as larger companies can present a very impersonal face.

Secondly, by looking for strategic partnerships with like minded, related trades. This enables smaller specialist companies to offer more comprehensive services to clients who are looking for a completely managed solution to their building project covering all trades involved.

Thirdly, by overhauling the way your business prices tenders and enquiries in terms of the profit margins expected. Look for ways of bringing down margins by applying efficiency savings.

Fourthly, by making sure you are on as many Approved Lists as possible. This can be a time consuming business, but is essential if you want to grab opportunities with larger clients such as local government, public sector projects, medical projects, larger building contractors who need a reliable source of sub contractors for different aspects of work.

Fifthly, by offering to value engineering the project for your potential client even before it gets to the planning stage of the construction process. For instance, offering to value engineer a project even before it goes into the planning stage can be of huge benefit. Value engineering is simply exploring various cheaper options in the equipment and technical specifications.

Fifthly, by obtaining more competitive rates and discounts from your suppliers. If you are coming from a specialist trade such as electricals, plumbing or air conditioning, you will already have excellent discounts available from your suppliers and these can be passed on to your client.

Construction marketing is becoming an essential part of the construction business environment, but has to be done sensitively and by people who know the industry.

Steve is an experience Business Development expert in the construction industry. He is also involved in social media marketing for small business. http://constructionmarketingmanual.com

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