You've Got Mail!

Don't you get just a little excited when you are scrolling through all those junk emails, when out of nowhere the subject line appears:  "New Project".  Wow, instant backlog, lets start counting all those little chickens (before they hatch of course).  Why are they sending this to me, and what should I do with it?  Is this a potential client I have never worked for in the past, or is it an old familiar friend with another sure profit maker?  The answer to that question is an important one in how you respond. 

We have all seen how different project aquisition is now, compared to say 3-4 years ago.  Now, when I hear from an unknown client, it is most often just a price shopper, bottom fishing for the cheapest design work in the entire continental US.  Now, the low end is that part of the market that I have never aspired to, for so many reasons.  The first reason for me is that engineering is not my "hobby", it's how I pay the bills.  If I can't make money at this, I might as well be fishing, at least that pays in food (sometimes).  Now, if you have people working for you, they also aren't there for hobby time, they need to be paid, and quite often.  Not to mention the benefits, health insurance, and it goes on and on from there. 

Another reason not to be Mr. Cheep is that the label, once it's applied, is hard to shake.  Once this economy turns around, you do not want to be stuck with the clients who only know LOW.  But the best reason not to cut pricing too much, is that your designs can get compromised.  The incentive is gone to try various alternatives, to spend more time in design to save construction costs and building energy use.  You only have one way to get this job done, and it has to be the quickest, or you are bleeding cash in a large manner.

But how can you do it, how to keep pricing up, when there is so much pressure to cut, cut, cut?  I find that educating the client may work, if you can show them added value for what you bring to the table.  Some clients will appreciate those alternative design solutions, that heating alternative, or the study of ground source heat pumps for cooling.  These are the clients you want.  The ones who appreciate great design, and who recognize the value it adds to the project.  These also tend to be the clients who pay quicker, don't mind retainers, and will give you a nice referral.  And if they are not taxed to death, they might just hire you and me for the next mixed-use Towne Centre.