Publications

We’re Getting Killed Out There!
by Leslie M. Kusek

Construction firms, engineers, architects and the myriad of other professional service providers that serve the built environment – we’re getting beat up bad. And we blame the economy, stiffer competition, and those blasted clients that don’t understand anything about the value of our services – only the bottom line price.

Folks, look in the mirror. We are traveling down this spiraling road by our own choice! We are letting our clients set the rules of the game, and we are not strategically directing the destiny of our companies. Many of us unconsciously bid on work, not fully understanding what revenue base nourishes our firms, or what weakens them. What types of clients deliver the most profitable projects? What types of projects do we want to position ourselves for future business trends? Where should we be investing our business development and marketing dollars to grow? Where are we going?

And what about those clients? How can we keep our professional services from being purchased in the same manner that toilet paper is purchased – low price? We are being viewed as commodities because we are presenting ourselves as commodities. The client calls, and wants a bid. We sharpen our pencils, drive our staff through a fire drill to prepare a quote, and email or fax it minutes before the deadline with the hope that ours will be the lowest price among the three or six or twelve other bids. We present decades, even centuries of experience within the context of an impersonal “bid”.

And this system works (mostly for the buyer, though). Sometimes (one out of three or four) you win. But it is not because you are consciously directing the future of your firm. This system for buying is very effective. In essence, the “buyer” is able to separate you from all of your knowledge and all of your experience (because they know you have it), and reduce you to a number.

Consider four steps that can keep you from getting killed and put you in control of directing your business’s future:

Take a close look at your business financials to understand where you are generating revenues and profits. (Which clients? Which services? Which geographic locations?)
Research your existing (and potential new) markets to set a course for your firm. (Where do you want to grow?) Monitor progress and reward success!
Be disciplined! Invest your marketing and business development resources (time and money) in areas that you have identified as strategic growth areas for your firm.
Avoid “quote and hope” temptations, where relationship and expertise are replaced by an impersonal bid. (A client won on low price will also be lost on low price – someone else’s!)

The culture of providing professional services to the built environment is dividing. Some firms are entirely consumed by the “bidding” buying process. They work hard preparing quotes, squeeze their staff to perform more efficiently, and accept lower profit margins. Other firms have grabbed the reigns of their business and embrace these truths: All revenue is not created equal; revenue without profit will not help my firm. I do have rights; I do not have to propose on a project if it will not help my firm. The future of our firm is within our control; by understanding the strengths of our firm and the nature of our markets, we can direct our future.

Where is your firm?

The author is president of LMK Consulting, a firm providing strategic marketing services to professional service firms in the engineering design, construction and legal fields.