A frequently asked question we get at Nite-Hawk is, "How do we compete in this tough economy against low bidders?" And to tell you the truth, the answer isn't easy and sometimes there's not a lot you can do. When your competition is willing to sweep for what you made 20 years ago in high school, working at local fast food joint, it can be brutal. It's tough not to be perturbed when you are spending 100 hours a week and every cent building your business, only to see someone who doesn't know their costs underbid and destroy the market. You can't stop the tide, but here are a few things you can do and mitigate the impact on your business.
First, educate your customers. Property managers are under the same pressures you are to cut costs and save money. However, reminding them that opting for the lowest priced contractor may be a short term solution with long term consequences. Does your competition carry the right insurance? Are they really doing the same quality job you're doing, or are they cutting corners? Are they using the proper equipment? Many property managers, if property educated, will pay a few bucks more to have the job done right.
Second, know your costs and limits. You must understand your costs fully to compete in a tough market. Know your variable costs, your fixed costs, and what type of economies of scale you can achieve by expanding your market. You can't afford to guess when every dollar counts. Know your margins, set parameters that are comfortable, and stick to them. You may find room in certain bids that allow for pricing flexibility. Run scenarios with your budget and margins to maximize your bottom line. Optimize what you have and concentrate on profitability, not overall revenue. 20% of your accounts may make up 80% of your profits.
And finally, know your competition and be creative. Know their strengths and weaknesses. We have seen successful companies lose business to low bidders, only to get the contracts back when they inevitably screw up. Keep in constant contact with your customers and make them aware of your willingness to step-in and help out (for the right price) when they are in a jam. Be creative in your presentations. Partner with other service contractors on bidding (i.e. pressure washing or landscaping) and give your customers additional options. Knowing your competition and their limitations, may help you in offering these additional services that could result in recapturing and retaining contracts.
Stay positive and good luck.
Tracy Day, President
| NAPSA Volunteers | |
The North American Power Sweeping Association (NAPSA) depends on volunteers to manage the association and to develop and deliver programs and services that create value for you.  Getting involved as a volunteer in NAPSA can help you build skills, learn from others and gain information that will further your personal and professional goals for years to come - and you'll strengthen NAPSA at the same time. Please contact NAPSA online at www.napsaonline.com or by calling 856.380.6845. | |
| Maintenance Minute - Skid/Flap Adjustment | |
 A simple way to keep your Nite-Hawk performing at its peak is to regularly inspect and adjust your pick-up head, flaps, and skids. This inspection should be part of your daily procedure with a focus on the skid, alignment, pick-up head, and length of the rear flap. Step 1: The skid (NH # PU-1601) and skid plate (NH # PU-0211) should be parallel to the top of the pick-up head. If the skid plate is out of adjustment, use a ¾ wrench to loosen the skid plate bolts and bring the skid plate back to parallel. Step 2: Next, inspect the skid for wear and damage. The skid should be a minimum of ¼" think in all areas, with no signs of cracking or fatigue. All the skid bolts should be tight and unbroken. Step 3: After inspecting the skid plates and skids, sight down the rear of the pick-up head for damage and alignment. Step 4: To check for flap wear, measure the distance from the ground to the bottom of the rear flap. This distance should be no more than 1/4". If an adjustment is needed, remove a skid spacer using a ¾" wrench. If the rear flap is uneven, remove enough skid spacers to eliminate all gaps. Over time, the flaps will wear and this process can be repeated. The flaps (NH # PU-1900) should be replaced when all skid spacers (NH # PU-1602) have been removed and the rear flap shows a gap of ¼". By following these simple procedures you can maximize the performance of your Nite-Hawk and extend the life of your pick-up head. For parts and service you can visit us on the web at parts.nitehawksweepers.com or call us at 800.448.9364. | |
