November, 2004

Takeoff Strategies at Mentor Lumber

By Staff Report

Editor’s Note: Reed Kneale, vice president of sales at Mentor, Ohio-based Mentor Lumber, agrees wholeheartedly with the premise behind our story on framing takeoff tips (October, 2004): A takeoff is one of the most powerful selling tools in a contractor salesperson’s arsenal.

But he also noted that the mechanics of a good takeoff are only half the equation. The strategic side is equally important—tweaking the list to your prospect’s preferences, polishing it to make it easy to read and professional, and making sure the builder knows that you went the extra mile to get it right. So Kneale sent his own list of tips and tricks:

Interview the builder or superintendent before you do the takeoff, so you can value-engineer the project and bid no more or less material than needed. Get copies of recently-delivered jobs so you can see what your prospect uses (and likes or dislikes). On larger jobs, I use a checklist of interview questions that works like a charm. We recently won a large nursing home project from a new account as a direct result of using this tool.

Visit prospects’ current jobs. If a picture is worth a thousand words, a jobsite visit is worth much more. Review the species, grades, and sizes actually used—they may differ from what the builder told you he used in the interview. Check for waste: What’s in the dumpster or scrap pile? What is being returned? Ask the framer how things are going, and look for options and systems that could save money.

Add a reserve to your takeoff. Include a few extra common items in your list and label it "Reserve.” The reserve does not replace normal waste factors, should not be mixed with the main bid, and should be no more than 1-2% of the overall. Explain to the builder that this will help him budget for unexpected costs. If he sees no need for a reserve or you’re in an ultra-competitive situation, eliminate it to stay competitive.

Create a written checklist for use in taking off the framing, similar to the millwork estimating worksheets advertised in LBM Journal. This can be changed depending on the type of project. Using a template eliminates the chance of forgetting something.

Color-code the plans to show exactly where everything goes. Show the builder your color-coded layout when presenting your list. This is very convincing, and allows a paint-by-number approach for the framer. It will also help you remember the details of a print you haven’t looked at for months. You can even laminate a copy for the job so the colors don’t wear off.

Create a template for your presentation from Microsoft Word or Publisher. It can include your logo and your prospect’s. Invest the time to set up a template and you’ll be more likely to use it when you’re in a hurry; once it is set up, you can even delegate the presentation to your support people. Just plug in your overall price categories to avoid handing the builder a complete shopping list. A copy of your checklist can be included in your proposal.

Proposals need to be broken down to the lowest common denominator. For example, don’t assume that a builder uses housewrap even if it’s on the plan. Don’t assume the prospect builds the same as your other builders. Show the customer the lowest category cost, then offer options at the bottom. This will make your package price low without omitting extras.

It works because the builder generally remembers the first number, and differentiates you from competitors who simply use a computer printout with everything jumbled together as a sales tool. Most builders will not take the time to go through your unfamiliar computer printout to figure out how many extras you included. They will just look at the bottom-line price, determine that you’re high and no longer worth their time.

Always be thinking of value-added options! Systems and materials that automatically lower costs and problems are welcome by every builder on the planet. Create a list of possible cost-cutting measures that can be incorporated into your presentation, then quantify the savings. Ask if their present supplier offers this service. Annualize the savings for a bigger impact.