Your role before the sale: The consulting expert
Even experienced decision-makers in the construction industry often lack detailed product-related knowledge. This is exactly the moment when you enter the arena – not just as a salesperson, but as a consulting expert in your special field. Because hardly anyone in your industry knows as much as you do! You convince with your expert knowledge. Your product may be more expensive in the first comparison, but it will fit the characteristics of the planned building better.
To achieve this goal, however, you need to know as early as possible about all the construction projects that really fit your product ideally and at what stage of planning they are in. As soon as you have filtered out enough information to estimate the contract value of the objects, the only thing missing is the knowledge of the right contact person. You can now start the sales process with confidence.
What is the contract value of an object?
Let’s take a quick look at the contract value 1×1: The term “contract value” (or contract volume) describes the cost scope of a construction project. This is estimated by the tendering body before the start of the award procedure. If a certain contract value exceeds the specified threshold, a construction project must be put out to tender on a Europe-wide basis. This threshold value is regulated by European public procurement law. Due to the different VAT rates in the EU member states, thresholds or contract values are always net amounts (without VAT).
Determining the contract value and your average total contract volume
You determine the presumed amount of a contract value on the basis of information about the planned object. You can use the location to draw conclusions regarding the necessary solidity of the building and the products used; you can draw further conclusions regarding the necessary standard of equipment based on the intended use; knowledge of the building owner or the suppliers already contracted also helps you to estimate the contract value. And based on the size of the object, you determine the number of products that may be marketable.
Now it is exciting to get an idea of the total order volume that is possible for you – and whether this is of interest to you at all. To do this, you determine the average value in relation to the comparable projects you have equipped to date. To do this, you add up all values and divide them by the number of values. Now compare the result with the contract value you estimated for the current tender.
Influence the contract value
You can change the number that is now in black and white in front of you with your targeted strategic investment. To do this, you use the information you have collected. New technologies already help you to automatically detect construction projects as early as possible and also take over the time-consuming project research with the help of Machine Learning. This rapid response is an essential requirement for influencing the order value in your favour – and thus increasing your overall sales volume.