I recently read this blog about soliciting bids in the midst of our current “housing bubble.” The article advised homeowners against low-balling when examining contractors’ bids for their work. It reminded me of where I was working when the housing boom finally started to go flat. At the time I was working in southern Oregon. It was a hotbed for new construction during the boom as retirees and newlyweds flooded the area, known worldwide for its landscape and moderate climate.

The town also flooded with contractors. Anyone with a hammer and a pick-up truck was in the business. But when things started to collapse (last I heard the number of homes on the market was up roughly 1000 percent), many contractors were left holding their hammers. That’s when the undercutting started. Bids dropped like Wile E. Coyote off a cliff.

Suddenly we were losing work, right out from under our noses, because everyone was trying to cut costs. For a time, quality of work gave way to quantity of work, often awarded to the lowest bidder. Not surprising, this only complicated things. Just a few months later we found ourselves being hired to finish work left incomplete by low-balling contractors who were either fired or just disappeared.

The moral of the story here is that underhanded bidding is not only unfair but unhealthy as well. Unhealthy for business, unhealthy for everyone involved. Even in a time of recession, the traditional rules of bidding still apply and contracts are not won, nor is work retained, simply through low bids. (more…)

What does ordering a pizza and lead generation have in common? A lot! Pizza and lead generation? What’s going on?

Let’s take a step back and think about ordering a pizza with just 1 or 2 or 3 toppings on different sides. Yes, this will appeal to the actual people who are ordering the meal.

But what happens if some friends come over who have not been involved in the ordering of your pizza? What if they just don’t like pepperoni and are allergic to cheese? They don’t get to eat with you. In fact, they may go out and eat elsewhere.

Or what happens if that pepperoni half (or third) falls on the floor? You’ve lost a major portion of your dinner. Either some people are going to go hungry or you’re going to have to spend more money on dinner to feed everyone.

Please, follow the analogy through. The choice of lead generation marketing channels (like pizza toppings) probably has the same affect on your potential customers. Almost everyone will react more favorably to certain advertising media and totally ignore or dislike others for whatever reason(s). Just like some people like onions, peppers, and mushrooms and others hamburger, sausage, and pepperoni. (more…)