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BlogBusinessbusiness adviceCommercial Electrical Contracting: Tips for Growth in a Competitive B2B

September 25, 2020

There is a considerable difference between commercial and residential electrical work. Electricians handle separate segments of the industry. The same electricians may work across both sectors at different times in their careers. Electricians may be skilled at both. If you are an electrical contractor in the B2B segment, you need to devise an expansion plan that exclusively caters to that segment.

Commercial electrical projects are high-profit areas for electrical contractors. So, the competition is always going to be stiffer here than in residential segments. This brief list of specific tips is electrical contractors. These tips can help grow these businesses sustainably beyond present capacities.

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Adopting an Adequate Contracting Software is Essential

If the business’s operations are relatively small now they still stand to benefit. Commercial-grade electrical estimating software can help with the three primary tasks:

  • Pricing
  • Bidding
  • Quoting

Most commercial contracting software for electrical contractors will have those features. It’s the implementation that matters most. What differentiates a software solution like Ensign from other electrical estimating software providers is its user-friendliness and accessibility in terms of real-life usage. The electrical contracting software can seamlessly integrate itself into a business’s usual workflow. There are no learning curves here. Nothing is steep enough to interrupt current productivity. Productivity occurs due to the easy and quick accessibility to every necessary feature. You won’t have an increased need for micromanagement. Nor will you feel overwhelmed.


The Contractor’s Office and Facility has to be impressive

In flights, we see a separate Business Class reserved for high-level executives, while top-class accommodation facilities such as 5-Star hotels and luxurious resorts have their Executive and Presidential Suites/bungalows. Your office must look the part if you want, big clients, to be interested and impressed. Proper location, good architecture, professional interior décor, genuine interest, professionalism, and a cordial reception are the minimum requisites here. There are more specific actions that can tip the scales heavily in your favor.

Display What You Can Do

The design of your office should be such that it prioritizes displaying impressive functionality and previous achievements in this line of work. For example, when a particularly successful general contractor pays a visit to your office, they are there to check your business’s capacity out. If while discussing the project, you are able to provide quick estimations, along with competitive pricing details specific to the project in minutes, that would be impressive.

Go a step further and also give them a quick tour of the facility. You show them how efficiently everything is organized for handling any project with ease. That would be even more impressive. Software, office layout, and the presentation will play equally important roles when it comes to making an impressive display of organization, capacity, and speed of delivery.

Display What You Already Have Achieved in this Sector

The final aspect of making an impression would be experience. This often plays the most crucial role in commercial sectors. If you have previous experience that is relevant to the kind of projects that you are bidding on, don’t forget to display it. You want clients to note it quite easily. Even if these projects were at a much smaller scale, this reminds potential clients that you have experience in the field.

Cheaper Rates: A Marketing Investment through a Big Client for New Electrical Contractors

When you offer the cheapest rate possible, a big client is likely to assume that only provide cheap quality electrical work. This is where you will need to be upfront with them regarding why you are offering the cheapest rate possible. When you are starting out in this segment and do not have the necessary experience, your company will need word-of-mouth marketing. Also, at least some relevant experience of working with respected names. This is absolutely necessary. Other big contractors and property companies will also get interested in the electrical contractor’s bids. If you strike a deal with your first big client at the cheapest possible rate without sacrificing  quality; there are a few effects that will soon follow:

  • It is possible that this won’t be a very profitable project
  • The quality, efficiency, and actual work done will stand as a testament to the establishment’s professionalism and quality
  • You establish a big client’s name behind your work
  • The electrical contractor will now have the necessary experience and recommendation they need to impress other clients

The idea should be to build realistic expectations within your potential clients. You want to establish your contracting business’s reputation in the field with an impressive display of work. This will be a one-time marketing investment for the company. Be sure to sign a non-disclosure agreement with the client. You don’t want them to reveal cheaper rates. Your clients would expect similar rates if they are revealed. Then it’s not going to remain a marketing investment anymore. Which means breaking even will become increasingly problematic.

The success of this strategy is entirely dependent on how well the contractor is able to show their capacity, ability, sincerity, honesty, and productivity while completing the project. If the final result lacks quality, your reputation as a commercial electrical contractor will be like from that point onwards. This makes it extremely difficult to come back from it. Additionally, if you do not have the financial backup to accommodate such a strategy, it’s better to take the long route. Slowly build your reputation with competitive pricing, rather than spending more than the company can afford to.

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