Winning Jobs Without Lowering Your Price

If you are competing solely on price, you’re playing the wrong game. In fact… I would say you are doing yourself and your industry a disservice. Do you want to be competitive? For sure, but that doesn’t mean you need to torch all of your profits. The funny thing is I think you already know what you need to do to win more jobs. But the question is, are you willing to do what it takes to make it a reality?

The good news? There IS something you can do and it only needs to be done once. The bad news? It’s a lot of work upfront and will take a good portion of your time, but it is worth it! Spend time now to save your time later!

🏗️ The Build

Put yourself in your potential client’s shoes. Let’s say they have just purchased a house and they need to hire a contractor to do a basic landscape install. What do you think that person wants? Assuming they are a reasonable person, the list is really not that long. Most people want someone who will show up on time, communicate with them, do good work, and charge a fair price. That’s it! Most guys can’t even deliver on that. So, my first suggestion would be, if you are having trouble delivering on any of those items you need to fix those first. If you think you have a good handle on those, it’s time to level up.

I have seen more contractor bids than I care to remember and do you know what I see? Missed opportunity. You are sending your potential client a document that they will receive with anticipation and look at enthusiastically. Don’t squander that away by having it be a single page sloppy spreadsheet with five lines on it. This does nothing for you! Presenting a bid like this just reaffirms to the client you are like everyone else. Spend some time on the presentation of your bid package. Maybe it looks something like the following:

1. Cover Page

Purpose: Makes a strong first impression.

• Company logo & branding

• Project name and address

• Client’s name

• Date of submission

• Contact information

• A professional, high-quality image (e.g., a past project or conceptual rendering)

2. Cover Letter

Purpose: Sets the tone and sells your company without being pushy.

• Brief introduction of your company

• Understanding of the client's needs

• Key differentiators (experience, quality, timeliness, etc.)

• Invitation to discuss further

3. Executive Summary

Purpose: Provides a high-level overview of your bid.

• Quick summary of the project scope

• Estimated cost range (if appropriate)

• Expected timeline

• Why your company is the best fit

• Key terms or conditions

4. Scope of Work (SOW)

Purpose: Clearly defines what is and isn’t included in the project to prevent misunderstandings.

• Detailed description of the work to be completed

• Materials and methods to be used

• Work exclusions (what is NOT included)

• Any assumptions made while preparing the bid

• Responsibilities of the contractor vs. the client

5. Project Timeline & Milestones

Purpose: Shows your planning and efficiency.

• Estimated start and completion dates

• Key phases/milestones (e.g., site prep, foundation, framing, finishes, etc.)

• Payment schedule tied to milestones (if applicable)

6. Cost Estimate / Pricing Breakdown (Separate Summary Page for Clarity)

Purpose: Provides transparency while maintaining control over your pricing.

• Lump Sum Option: Single total price for the entire project

• Itemized Breakdown: Costs for labor, materials, permits, subcontractors, etc. (if relevant)

• Optional Add-Ons: Additional features the client may want to consider

7. Value Proposition & Differentiation

Purpose: Highlights why the client should choose you over competitors.

• Portfolio of past similar projects (before/after images, case studies)

• Testimonials or references

• Your company’s strengths (warranty, craftsmanship, expertise, customer service, etc.)

8. Terms & Conditions

Purpose: Outlines legal protections and expectations for both parties.

• Payment terms and schedule

• Change order process

• Permitting responsibility

• Warranty information

• Dispute resolution process

9. Call to Action

Purpose: Encourages the client to move forward.

• Clear next steps (e.g., "Sign and return by X date to move forward.")

• Contact information for questions

• Invitation to schedule a follow-up meeting

10. Attachments (As Needed)

Purpose: Supports your proposal with additional details.

• Drawings or plans

• Permits/licenses

• Insurance & bonding information

• Safety plan (for commercial/industrial projects)

🛠️ Tools of the Trade

• Organize your quantity takeoffs. There is no one good way to do this but find something that works well for you. Often using colors and labels is helpful.

• Stay on top of new tools that are being produced. All the major brands of power tools are constantly innovating, if there is a tool that will make you more efficient you should really consider a purchase.

• Make sure you have an online presence. Having a google my business account is essential for people finding you and contacting you.

📊 Estimators Edge

• The Shift Toward Prefabrication

  More contractors are adopting prefabricated and modular construction methods to reduce waste, speed up project timelines, and combat labor shortages. This shift is changing how estimators approach project costs and timelines.
  Source: McKinsey & Company

• The Impact of Interest Rates on Bidding

  Higher interest rates are increasing financing costs for developers, leading to more cautious spending on new projects. Estimators need to account for potential slowdowns in project approvals and tighter budgets from clients.
  Source: Federal Reserve Economic Data (FRED)

• Insurance Costs Are Driving Up Bids

  Rising insurance premiums for contractors, especially in high-risk areas, are becoming a bigger factor in project costs. General liability, workers’ comp, and builder’s risk policies are all seeing increases, forcing estimators to account for higher overhead.
  Source: Insurance Journal

✅ Punch List:

• Quick Tip – Double-Check Unit Conversions – miscalculating square feet to cubic yards can cost you big. Always verify!

• 🔗 Worth a Click – Layout robots like HP SitePrint and Dusty Robotics are automating site marking, increasing accuracy, and cutting labor costs for contractors.

• 👀 Question for You: Do you have a way to check your estimates? Respond and let us know what has worked well for you.