{"id":1381,"date":"2013-02-19T21:26:21","date_gmt":"2013-02-19T21:26:21","guid":{"rendered":"https:\/\/dev2.brandconstructors.com\/?page_id=1381"},"modified":"2024-08-13T04:15:55","modified_gmt":"2024-08-13T09:15:55","slug":"branding-out-of-the-lowest-bidder-mentality-before-its-too-late","status":"publish","type":"page","link":"https:\/\/dev2.brandconstructors.com\/blog\/publications\/branding-out-of-the-lowest-bidder-mentality-before-its-too-late\/","title":{"rendered":"Branding Out of the Lowest Bidder Mentality, Before It\u2019s Too Late!"},"content":{"rendered":"

Published in Design & Construction Report<\/em> \u2013 August 2010<\/p>\n

The construction industry is under massive economic and competitive pressure nationwide. For companies to survive and thrive in this environment, they need to set their brands apart from their competitors through strategic positioning, brand differentiation and awareness, and execution of their customer experience. And NO\u2026 we\u2019re not talking about the Disney construction crew! Now is the time for companies to get serious about implementing brand building initiatives and techniques to facilitate their growth and continued success. Otherwise, they and the industry will succumb to the \u201clowest bidder mentality,\u201d construction quality will continue to decline, and only a few major players with significant economies of scale will thrive. So, what can you do now to fight this trend? We have some thoughts for you, so read on.<\/p>\n

Value pricing: what your services, products, and experience are really worth.<\/h3>\n

One of the most challenging branding initiatives for construction companies to complete is the establishing of a \u201ctrue\u201d value proposition that lays the groundwork for all other branding efforts. Often when asked what really sets them apart from their competitors, the answer is always the same. So, how would you answer? Think hard. What are three unique factors that make you different from the guys across town? What\u2019s your answer? Usually we hear: \u201cWe\u2019re on time and on budget! We build long-lasting, trusted relationships! We deliver quality work! It\u2019s our people!\u201d Sound familiar? Don\u2019t feel stressed\u2013these characteristics define many great construction companies and many of them will say these same things when asked the brand differentiation question.<\/p>\n

So, how can you formulate and communicate your true brand differentiating characteristics to a prospective customer? You first must establish a Value Proposition for your company. What is a Value Proposition, you ask? Well, a value proposition is \u201cA statement or paradigm of the benefits, costs, and value an organization delivers to customers or others within or outside the organization.\u201d Basically, Value = Benefits \u2013 Costs.<\/p>\n

A company without a clearly established value proposition is a \u2018commoditized business.\u2019 Commodities cannot charge more for the product or service. Next time you\u2019re in the grocery store, stroll down the coffee aisle. You\u2019ll see hundreds of product choices, all priced about the same. So, how do they try to differentiate to grab the customer\u2019s attention? They use fancy packaging and a lower price. Then, they put their product on sale, thus lowering the price further. Then they run a special and give away some of their product, thus lowering the value further. Do you see the trend? Who will survive? Do you think the lowest price is the coffee roaster that packages the best beans, roasts them carefully in small batches, and delivers the product as fresh as possible? Nope\u2026And why not? Because they are stuck in the lowest bidder mentality and they can not afford to produce a quality product or good brand experience. Now, I may be exaggerating here a little, but I think you can get the gist of what I\u2019m saying. You have to KNOW what your true Value Proposition is before you can communicate it to prospective customers!<\/p>\n

So, what\u2019s the moral of the story? Price your product according to the value you provide. Be the lowest \u201cQUALIFIED\u201d bidder, not always the lowest bidder. After all, only you know what your product and services are really worth, but you must be able and ready to substantiate your claims. Have examples readily available and collect testimonials from your customers to build your reputation proof file. Reputation matters even more now! If I was a sub-contractor and could guarantee you, the general contractor, less headaches because of my specific experience with the kind of work you\u2019re bidding out, the job done right because of previous documented examples of successful on-budget completion, and on-time because I understand the contingencies that may arise, and without work change orders, would you pay me 10% more? \u202620% more? How much is it worth to you to know that the job won\u2019t go over bid because we can guarantee it? How much is it worth to you knowing your client will not call to yell at you because of my performance or another sub won\u2019t tell you they can\u2019t start work because I\u2019m still in there way. There\u2019s a thought. Here\u2019s another thought for you, do you want more money or more clients?<\/p>\n

Build and Nurture your Brand for success:<\/h3>\n

Now that you\u2019ve taken the time and made the painstaking effort to formulate and cultivate your company\u2019s Value Proposition, it\u2019s time to build your Brand. Begin inside your organization. You have to get your own house in order, so to speak, before you can walk-the-walk. If you do this the right way, you\u2019ll find that you are already walking-the-walk, but you and your staff may not have known how to think about and talk about your brand\u2019s unique differentiation and positioning. So put an end to that by establishing brand-delivery expectations internally and training your team on them! What does your company stand for? How do you want to be viewed by your community? Where is the company headed in the future? Answer these questions and form a vision for why your company is relevant.<\/p>\n

Define your company culture, and its place in the \u201cgrand scheme of things,\u201d and provide a vision of the future so they can see the long-term value of a relationship with your company. Then, establish and communicate the repercussions that will occur should the brand experience not be delivered as expected. This is vital! Don\u2019t assume your people know or understand your brand! It takes time to develop a brand\u2019s awareness and full value, but it only takes one screw-up to ruin the value and reputation.<\/p>\n

Carve out a special place in the world for yourself!<\/h3>\n

Once your vision is set, it\u2019s time to think about market position. You must define your strengths and weaknesses (google SWOT analysis), so you know what type of business you want to go after, and what type of business you can go after but may struggle to get. This process will form the basis for your \u201cbranding\u201d efforts. You may be surprised by the niche markets you have slowly developed over the years where your competitors can\u2019t touch you because of lack of experience. Niche experts demand higher rates for their expertise and proven record.<\/p>\n

Branding efforts include establishing a look-and-feel for your company starting with your logo and stationary package, design and content for your website, newsletters, advertising and communications, and building a functional and viable social media strategy. Your competitive advantage should really stand out through these tools. The messaging communicating your differentiation should help with convincing your prospects that your company is the best choice. Specialization, capabilities, equipment, expertise, team, past projects, cost-saving techniques\/value engineering, etc. should be spotlighted in your brand marketing tools. They should also work cohesively to establish your brand\u2019s true market position and value. Your expertise and project history should raise questions about your competitors\u2019 experience. Does your RFP simply state your qualifications or does it make you stand out as the best, possibly only option for the client?<\/p>\n

So, where do we go from here?<\/h3>\n

Branding your construction or design\/build firm is no longer an optional undertaking. Your competitors are doing it, and their efforts may just be the nail in your proverbial coffin. After reading this article, you have the knowledge of where to begin, and if you\u2019re still not sure, then ask for help. Establishing a unique value proposition, defining and communicating your vision for the company\u2019s relevance, and building and utilizing a full complement of brand marketing tools to relentlessly promote and nurture your brand will give you a strategic advantage over your competitors. Having the infrastructure ready to apply to website development, advertising creative, internal\/external newsletters, RFPs & proposals, award submittals and press coverage can make your branding efforts go smoothly while significantly reducing marketing costs. (Yes, we\u2019re saying you\u2019re marketing costs could go down while your profits go up.) Make this current business environment work in your favor. Build and nurture your brand now, establish your brand dominance, and win more of the right kind of projects for your company while increasing your profits!<\/p>\n

For more information or to view other articles on branding and brand marketing visit www.BrandConstructors.com<\/a> . All rights reserved. \u00a92010 by The Brand Constructors. Published with permission only.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Published in Design & Construction Report \u2013 August 2010 The construction industry is under massive economic and competitive pressure nationwide. For companies to survive and thrive in this environment, they need to set their brands apart from their competitors through strategic positioning, brand differentiation and awareness, and execution of their customer experience. And NO\u2026 we\u2019re[Read More]<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":1445,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-1381","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/dev2.brandconstructors.com\/blog\/wp-json\/wp\/v2\/pages\/1381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dev2.brandconstructors.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/dev2.brandconstructors.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/dev2.brandconstructors.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dev2.brandconstructors.com\/blog\/wp-json\/wp\/v2\/comments?post=1381"}],"version-history":[{"count":5,"href":"https:\/\/dev2.brandconstructors.com\/blog\/wp-json\/wp\/v2\/pages\/1381\/revisions"}],"predecessor-version":[{"id":4374,"href":"https:\/\/dev2.brandconstructors.com\/blog\/wp-json\/wp\/v2\/pages\/1381\/revisions\/4374"}],"up":[{"embeddable":true,"href":"https:\/\/dev2.brandconstructors.com\/blog\/wp-json\/wp\/v2\/pages\/1445"}],"wp:attachment":[{"href":"https:\/\/dev2.brandconstructors.com\/blog\/wp-json\/wp\/v2\/media?parent=1381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}