Handling Rejection in a Tough Industry
Handling Rejections in a Tough Industry
Everybody knows the story…you put a lot of time and detail into a proposal, assessing all the angles, hand-picking materials and methods, doing your homework on labor and cost, and the customer comes back with a resounding NO. Of course it is frustrating to put in effort and lose the bid – but how you handle rejection ultimately speaks volumes about you as a professional in the construction industry.
Don’t Take It Personally
When it comes to selecting a bid, the #1 factor that drives decisions is typically cost – customers want the best value for the lowest price possible. In the construction industry, no two contractors bid a given project in the same fashion. Some contractors look to add value by using cheap materials and labor in an effort to lower costs, giving the customer a cheaper price at the end of the day. Other contractors use quality materials and skilled labor, hoping to demonstrate that the value of craftsmanship and durability is more important than delivering bottom-of-the-barrel pricing.
At the end of the day, you shouldn’t take it personally if a customer doesn’t run with your bid – 9 times out of 10 it is strictly a financial decision. Instead of taking the rejection as a personal affront, here’s the perfect opportunity to examine your bid, comprehensively looking at everything from materials, to labor, to timeframes. Take notes on your interactions with the customer so you have the ability to go back and reflect upon them. Perhaps you can refine your bid process, improve your labor structure, and streamline your costs so that you can not only make a profit, but also match the expectations of your clientele.
Your Reputation Precedes You
It’s definitely difficult to remain neutral and more importantly, positive when a client delivers that heavy “no.” Contractors often see themselves and their bid as the best choice and when a client goes the other direction, some contractors are immediately discouraged. It might feel satisfying to give your client some choice parting words about wasting your time, choosing an inferior contractor, or even hoping their project ends up being a total bust…
However now is not the time! First of all, you don’t want to build the reputation that you’re an overpriced, sour contractor that gets bent out of shape when you’re not selected…a bad word travels twice as fast in this industry. Second, you still have plenty of responsibility in the client’s decision-making process – you either did a good job communicating your own value on the job, or you fell short here regardless of price. Instead of snapping back at your potential customer, you could hit them with a line that positions you as a consummate professional: “Thank you for giving me the opportunity to bid your project – I wish you the very best in the future and hope it turns out gorgeous.”
It’s Not Always Won on the First Go-Around
Running with the last point above, it’s always good to remain positive and optimistic as a contractor even if you don’t secure the bid. It’s a very common occurrence in the construction industry to have different contractors bounce in and out on projects due to differences in workflow, style, and opinion on behalf of the client. Many contractors will tell you that they weren’t the first choice on the project, but due to unforeseen circumstances, ended up completing the work anyway.
Now do you think a prospect would call you back at a later date to gauge your availability for the project if you shot them some choice words after their initial rejection? Not a chance. The construction industry can be rough when it comes to rejection, but it’s all about how you handle it as a professional first, and a person second. In this business, there’s no doubt you will encounter a good amount of rejection – however each “no” you receive is one step closer to a “yes.”
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