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Evaluating the Lowest Priced Proposals for Asphalt Paving

Evaluating the Lowest Priced Proposals for Asphalt PavingLet’s look at evaluating the lowest priced proposals for asphalt paving. You have head it before: QUALITY, SERVICE or PRICE (PICK 2). It’s cliche but it’s true. What kind of buyer are you? It is a safe bet you are seeking a quality product with excellent service at the lowest price. Found a contractor who offers all three? Sound too good to be true? Chances are, it is. I have found myself in conversation with business owners who are frustrated by attempts to have the best quality, the best service, and the lowest price. Trying to be “all things to all people” is not a good strategy. Those companies who have found success in being the lowest cost provider, realize that this requires some sacrifices in delivering the best quality and the best service.

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Most buyers are looking for the confidence in their supplier to solve a problem. That confidence comes from consistent delivery on promises and includes high quality and high service levels. A competitive price may be sought, and the lowest would not be expected. The number 1 selling phone in the world is the Apple iPhone. This is an example of brand loyalty which has all to do with confidence, and absolutely nothing to do with price.

Traditionally only 10%-15% of buyers are fixed solely on “lowest price.” This may come as the result of 85%-90% of low-price buyers learning that lowest price does not always mean lowest cost. Being cost-conscious is not the same as accepting the low bid.

Buyer Beware as you evaluate the lowest priced proposals for asphalt paving:

• Make sure that there is a common spec for all bidders. If you do not have a spec, consider trusting someone to write one. This will help to eliminate the confusion sorting out apples from oranges down the road.

• Try not to get caught up in “years of experience.” Experience is how long someone has done something. Skill is how well someone does things.

• Check the reputation of your contractor.

• Check references and successful project history.

• Ask for proof of insurance, bonding capacity, EMR, certifications.

• Examine the warranty.

• Accept the fact that with the low price, something else is most likely going to suffer.

American Asphalt prides itself on consistent delivery of high quality, high levels of service, and competitive pricing. More than 80% of our business is repeat and referral which speaks directly to consumer confidence as well as brand loyalty. We look forward to the opportunity to serve you…

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