Shaun's Corner "Sell Technology Not Print"

I was in Up-State NY and Boston last week to meet with several of our PEiR members and their AEC customers to learn about the challenges and opportunities that lie ahead for our industry in 2010.

One thing is abundantly clear: While opportunities to sell customers printing services appear to be declining, the opportunities to approach customers with technology solutions are huge and growing. The days of throwing bodies (labor) at problems are long gone. Every AEC company recognizes the need to use computers and software applications to improve productivity and efficiency.

Whether they use AutoCAD, Microsoft Office, Timberline, Prolog, Primavera, SharePoint or whatever, they are all accustomed to budgeting for technologies. They simply need reminding to extend that technology review to their reprographics services. Nowhere is this more obvious than in the bidding process.

The contractor community, has a limited number of funded projects in the works. As a result, contractors are required to do a lot more bidding to win a project. The bidding process used by many contractors is oftentimes very inefficient, and as a result, can create technology sales opportunities for those reprographers who can demonstrate the value of their bid communications and document distribution services.

In an effort to keep costs down and in some cases to keep their doors open, many contractors are trying to cut any costs associated to pre-construction activity, in order to survive. Remember, contractors don’t make money by bidding, they SPEND money. To stay in business, they need to make the bidding process as cost effective as possible. To most, that means reducing costs in bid set printing by eliminating them entirely, or passing printing down to subs by simply distributing their bid documents digitally.

That’s where we need to turn into technology promoters.

Solutions like PlanWell/BidCaster and Sub-Hub can offer better document control, productivity improvements, bid response tracking and better security than ANY analog-based solution. Contractors are still opting to use less sophisticated digital distribution methods (technologies) like FTP and CD’s because they do not understand the savings that your technologies can offer.

Reprographers who are struggling to get GC’s to pay to use their document management solutions need to remind themselves that they must explain to their customers that the technologies they (reprographers) offer actually help solve problems and create value.

Some reprographers are still lucky enough to be printing bid sets for government projects particularly in markets that require bids to be distributed in paper. Others claim that bid set printing is declining so fast that they (reprographers) are finding that they have more print capacity than the market is demanding. I could not help noticing at some shops, production devices and personnel were sitting completely idle. Such circumstances demand a different approach to remain relevant to our customers and viable as an industry.

Don’t lose the chance to help your customers to increase productivity and reduce costs with the technologies you can offer. You may need to price the technologies a bit different but I think you will find that you will have a better chance of getting your customers to accept the costs.

Automating the Bid Communications Workflow in the Construction Office

It is important when selling technology that you understand what problems and inefficiencies you can solve for your customers.

In the bid process you can save the pre-construction department labor, printing costs and increase their chances to win more projects. Effectively doing more with less and that is what the marketplace is looking for!

“Bid Services, Can I Help You?”

By Shaun Meany
The PEiR Group

For the past two years the PEiR Group has been promoting bid communication solutions and some of the opportunities technologies like BidCaster and SubHub can offer General Contractors with their Bid Processes. Some of our members understand this area of opportunity. Many do not - or just don’t see how it can benefit their customers and their own businesses.

I have talked with several reprographers who understand the bid process, have embraced our bid technologies and have enjoyed new sales as a result.

As our industry continues to evolve, many of the traditional services that you have grown to depend upon for sales and profits simply will not be demanded in the same volume as before. As the construction industry begins to crawl out from under its current cloud many of your customers, like General Contractors, will be looking to change the way they do their business processes; particularly the pre-construction or bid process.

When it comes to the bid process (often considered an overhead activity) most GC’s want to reduce expenses and boost productivity. Reducing bid set printing is one of the most obvious areas that GC’s focus on when trying to reduce expenses. There are two primary alternatives that GC’s tend to choose for reducing their printing costs: (1) send out cd-roms (2) post drawing and specs to a FTP site. While both these methods will reduce printing costs for the GC, neither approach improves productivity for the subs and suppliers. Sure, the documents get to their intended parties fairly quickly, but there are still inefficiencies (and costs) that could be controlled more efficiently with bidding solutions like BidCaster and SubHub.

Let's look at distributing bid-sets on cd-roms. The cd-roms still have to be mastered, duplicated and distributed (by mail, pick-up or express couriers). Any updates to the documentation must also go through a similar distribution process.

The next time a GC asks you to create a bid-set to be distributed via cd-rom here are a few questions you may want to ask: Why are the music and video industries moving away from cd/dvd media? How do you (Mr. GC) plan to update your subs when changes take place? How long does it take to update and notify plan holders of addendums? As you already know, with plan rooms like PlanWell or SubHub the documents are always up to date. Changes can be made real-time and anyone who has access will know what the current documents to bid upon is.

The same applies to FTP sites. It may sound simple for a GC to upload documents to a ftp site and send out instructions on how to download the documents. But when you look at this process in more detail FTP actually creates more headaches than it alleviates. First, the sub needs to know about ftp. Second, the sub needs to know a user name and password. Often the same user names and passwords are used by everyone who want access to the FTP site quickly breaching security. Third, how does the GC track who has documents? If a sub just wants to look at a document he has to download it and then view it. This can take a considerable amount of time if they have a slow Internet connection.

Here's something to ask your GC’s: Why do subs want a digital file?

An important component of bidding is tracking who is interested in bidding and who is still kicking the idea around. CD-Roms and FTP sites do not track who is interested in bidding the project. Sometimes this is the most critical information that a GC needs to know. Does he have coverage of all trades required on the project and if not how can he get more bids before due day?

More than at any other time in our industry’s history, it is vital that reprographers begin to market services beyond mere printing - and bid communications offers a perfect opportunity.

There are two approaches that you can consider with bid communications:

1. Offer bid communication software tools such as PlanWell Bidcaster or SubHub that your GC's can learn and deploy.
2. If your customers don’t want to take on learning a new system there might be an opportunity for you, the reprographer, to provide “Bid Services“ as an outsourced service.

One very progressive reprographer I've talked with recently said they've introduced a new department in their business called Bid Services and they've put a person with construction industry experience in the manager's position to make sure things run smoothly.

Either way, be it with BidCaster, SubHub or a dedicated Bid Services department, you will be offering intelligent choices that can address your GC’s needs, help them reduce costs and increase productivity. It’s a win win for both you and the customer!