BIDDING BRANCHING OUT

How to become a supplier on large-scale projects

ith the current economic climate and the repercussions of COVID-19, ensuring a diverse business stream is important to your store’s success. If you’re a small or medium sized business, consider becoming a supplier on large-scale, commercial, or government projects. Your store’s participation will allow for steady industry sales across all sectors of the industry, including retail, professional home and commercial, and larger projects, helping your business stay sustainable in all economic times.

We glean the expertise from three ALLPRO members with a wealth of experience as suppliers on large-scale, commercial, and government projects. They reveal their own strategies and offer advice for other independents interested in expanding their business offerings and getting involved in large projects.

1. IDENTIFY KEY PLAYERS & CUSTOMERS

If branching out and building your business is on your to-do list, determine the top companies for large-scale projects. These organizations are part of the design and building team that report directly to the owner, or the company delivering the project. The Color House has plenty of experience when it comes to bidding, participating, and partnering on large, commercial, and government projects. According to Doug Caniglia, Director of Sales, Industrial/Commercial Coatings for The Color House, the store studies the market to see what projects are forecasted and who their target customers are.

“We meet with architects, designers, developers, housing authorities, property managers, corporations that do manufacturing, facility maintenance companies, as well as state and local agencies so that they can understand the power of our supply chain and service,” Caniglia says. “We approach all customers with a ‘can do’ attitude so that we can deliver a clean sophisticated supply chain that offers real value.” When Jon Dazey started working at White’s Lumber, his role was to diversify the business’s current offerings and expand to federal government contracts. In doing so, Dazey began identifying top-tier companies for each project. “I meet with architects and general contractors specifically about paint. It’s good to have a relationship with the general contractors as well.”

2. DO YOUR HOMEWORK

There are a multitude of steps involved in finding, preparing and submitting a bid for a major project. While some private projects don’t require bidding, most state and federal work requires bidding to keep the project fair and competitive. Before jumping in headfirst to bid and participate in megaprojects, do your homework. Not only will you need to understand the products and requirements involved in the project, but you will need to ensure you’re familiar with the bidding process. Clint Carroll of John Lee Paint suggests brushing up on your knowledge of bid documents and plan specifications, and determining which projects are worth your time. “You really have to figure out who you’re bidding against and what type of projects can be successful,” Carroll explains. “The second would be just making sure that you understand the bid document, and that your products are able to be used on the project. Then it’s just a matter of putting pen to paper.” “I get a lot of word of mouth now that people know me as a resource,” says Dazey, adding that prior knowledge about how his product can be successful on the project goes a long way in securing a job or partnership with a painter. “I try to do my homework before I present it to painters, so I have an understanding of what the project is. Once I figure out what the specifications are on the bid, I come up with a game plan of what I can provide.” Diligent and detailed documentation also aid in a competitive bid submission.

“It takes time to review project documents, plans and specs, communications with brand partner technical departments for coating compliances, as well as preparing submissions for all products being offered,” Caniglia says. “Making the job easier for the customer is also a major part of delivering value, knowing how to use your team, and giving the person making the decision a reason to consider you.” But it takes more than the right product, documentation, and connections to get in the game when it comes to large-sized projects and contracts. According to Caniglia, there is no golden parachute to receive the work. “The Color House has to be on point every day with service, products, and a competitive footprint on product and solutions for the customer to value and trust.” Caniglia says that low bid price is a major contributor to the commercial market, something that can be difficult for the independent retailer if they’re not a brand partner with a customer. “Far too often we see the industry selling on cost alone and the reality is that as a small independent, it would require the independent to work for nearly no margin due to the lack of industry tools or products to hit all sectors of the market,” Caniglia details. “Without creativity, brand participation, and service, we would not be a consideration or be able to deliver the value necessary.”

3. PARTNER WITH MANUFACTURERS & VENDORS

For a winning bid and a win-win situation, our experts suggest partnering with manufacturers, vendors, and brand partners. The Color House uses communication and honest information to bring brand partners to the table and deliver industry pricing that is in line with competitors. “It is essential that brand partners understand who their immediate customer is first, as we have seen many with a focus on the end user instead of the dealer who is paying the bill for the inventory,” says Caniglia. “By building the relationships with the reps as well as the various brands offered in the market, it is truly an option to compete in the commercial/government sectors of the coating industry.” Carroll often works hand in hand with sales reps to get the most aggressive and competitive pricing, and considers it teamwork. “Get [manufacturers] involved early, let them know the scope of the job and you can kind of go after it together,” Carroll says. “Know your manufacturers, let them work with you, let them help you.” Dazey’s partnerships with key sales reps have been instrumental in helping him secure a few big projects. “There were some big commercial companies that were big wins for us - some city projects like office buildings,” explains Dazey.

4. DESIGNATE KEY PERSONNEL

Dazey, Carroll, and Caniglia all work with their respective stores to network, bid, and secure large project work. But oftentimes it requires more than just one staff member to do the work needed to manage the large-scale and commercial/government side of the business, especially if the projects are located in different areas of the state or municipality. Carroll suggests having less people with their hands in the projects, and that those who are involved are specialized in their area. “There’s a lot of detail that goes into filling things out and how things are invoiced,” he informs. “There’s all kinds of rules and every city, municipality, and state has a different requirement. And so, I would even suggest that you tag certain people in your company to handle certain municipalities, or this [employee] handles this contract or federal contract, and try to keep it separated because they’re all so different.”

Having staff members who are both knowledgeable and accessible can be a benefit for companies venturing into the arena of bidding on large projects. “One of the biggest things that I find helps me get involved in these projects, [is if I] present myself and make myself available as a technical resource or a partner. So, if they have a technical question, they know that I’ll be able to help them. And if I don’t have an answer immediately, then I will find the answer for them. That’s one of the biggest things that has helped me,” Dazey reveals.

5. NETWORK & BUILD RELATIONSHIPS

When it comes to becoming a supplier on large projects, oftentimes it’s all about who you know. To connect with top-tier clients and build relationships with general contractors, commercial paint companies, government personnel, as well as key suppliers and vendors, consider every kind of networking, from personal lunches to large trade shows. Workshops, conferences, and industry events provide plenty of opportunities for business development. “Most customer [sales] and winning bids all come back to the relationship you have with a customer, [even when] your customer changes to more of a government entity or a general contractor,” Carroll explains. “By knowing them and building a relationship, they’re going to let you know when bids are coming out, are going to help you with all the red tape and the formalities of them, so good customer service and customer relations plays into large commercial and federal government contracts.” Carroll suggests getting involved in the local chamber of commerce. “You meet a lot of government, city, and county officials through different civil organizations like that. And every town has a city school board or a county school board. They all buy a decent amount of paint coatings. Network within your community and know the types of projects that you can be successful at and that your company can handle. And then build consistency and familiarity with those entities.” White’s Lumber is fortunate to have a builders’ exchange they participate in, which provides them with an opportunity to network with contractors, subcontractors, design firms, construction clients, and others involved in the local construction industry. “Going to those [events], getting [to know] those individuals is definitely critical to building your relationship. I mean, that could be where your relationship starts. You don’t know this builder, you meet them at a builders’ exchange or some sort of networking event, exchange business cards, follow up, take them to lunch or something like that, figure out what their needs are. And once you know how their needs are being met right now, it enables you to formulate a plan of how you can better help them,” says Dazey. Knowing your business and having peers and business leaders know that you are an option over a corporate option is critical for The Color House. “Networking can assist in this from casual connections to being aware of the industries around you to inform them that you can help them with procurements,” Caniglia states. “We network everywhere - at dinner, at social events, playing golf, professional meetings or board appointments, and just through the basics like educating our everyday [customer] who may not know all that we do.”

6. DELIVER ON PROMISES

For members interested in becoming a supplier on larger commercial government projects like this, Dazey suggests under-promising and over-delivering. “The last step is just really making sure you’re able to follow through with what you promised,” he says. Caniglia agrees. “Once the project is submitted, it is essential from that point on to deliver on all milestone dates for products, so project management is essential in keeping that relationship healthy.” Maintaining the partnership with large customers and reassuring them that you’re committed to the success of their project is of utmost importance to John Lee Paint. “I’m a partner for many of my large customers,” Carroll emphasizes. “I partner with them and help them become as successful as best I can. They view me as a problem-solver, partnering with them to ensure that they’re going to have a good outcome. It’s the same with painters, commercial painters, or anybody; if they have an issue, they want to know they have a partner, not just somebody that’s going to sell paint.” It’s that customer service component that sets suppliers like John Lee Paint, White’s Lumber, and The Color House apart from their competitors and helps them secure bids for larger-sized projects. “It is about service, professionalism, resourcing, and providing a seamless easy experience that the customer appreciates and values,” Caniglia says. “The better you are at making sure that the customer succeeds, the better your reputation and success with that relationship becomes.”

“Most recently a customer called due to a retail relationship with The Color House over the years in their personal life and asked if we could help. Ironically, the person calling (who bought the product for personal use) works at a manufacturing facility that has been in business over 85 years. As the discussion and issues became clearer, [a leading manufacturer] essentially stated to them that they could not get product any longer due to shortages, crippling the Success Story production schedule and company. After hearing of the needs, we went into action and found products to support the needs and also the production schedule moving forward. Through clear and concise communication, we helped the company secure a five-month supply of coatings in a single shot. Knowing that the industry is still broken, we went even further and created a second vendor as an option, being tested as we speak. The beauty of the second option is that as we learned and developed the discussions around the needs of the customer, we were able to secure the second ” option in a stock color (pre-tinted). By doing this, we were able to reduce costs to the customer and provide even more value while saving business costs on tint and labor which matters to every independent. - Doug Caniglia, The Color House