By Brian K. Birch
It is common practice in our industry to refer to the process of selling and pricing in snow and ice as “bidding.” Most people will immediately relate to the term, and it’s safe to say that the word is sufficient to begin a conversation about pricing and selling work in snow. The term “proposal” is also used, but does either word encompass everything that is included in the professional snow & ice management sales process? Not any one word can, since the process has many steps, nuances and variables to consider. Either way, SIMA has made it a core goal to ensure that contractors understand the entire sales process for snow management.
To do anything meaningful, you must know where you stand. A solid process is the foundation of that stance and is composed of these elements:
Know your numbers. Understanding what it takes to accomplish work is the most fundamental piece of this puzzle and should include equipment and overhead assignments, operating costs, labor and more.
Use production rates. Calculating, tracking and refining your production rates will inform your process and help you tie production (doing the work) to consistent pricing (generating revenue and profit).
Consider weather history. Snow & ice management selling is, by nature, based on some assumptions, which are based on historical data and averages. You must create a process to understand the averages and extremes of winter weather in the markets in which you sell, and build a sales strategy that creates profit and protects your long-term financial security.
Incorporate customer specifics. There are many variables related to on-site logistics, customer needs, perception of value and special requests that must be understood before getting to the proposal and closing stages of the process.
There are many business models and potential markets in snow & ice. The most effective way to navigate this maturing and changing market is to develop a strategy to differentiate based on opportunities and strengths, and then align your production, marketing and selling efforts with that strategy. From there you can build a consistent bidding and proposal process that is replicable and not dependent on how fast your salesman can talk or what he can promise.
Anyone who simply makes the decision to propose a price, without the definitive need to prepare for it, will risk overpromising and under-delivering on service. We have seen many cases of this in our industry. The company that decides to throw out bids everywhere and roll the dice on price will have an equal chance of long-term failure. This industry is not a sprint, although it may feel like it. It’s a marathon, and the professionals with vision will consistently refine their bidding and proposal process and position themselves for the long haul.
Brian Birch is assistant executive director of SIMA. Contact him at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
