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November 8, 2024

Why Most Custom Home Builders Are Losing Money By Bidding Against Other Builders (And What To Do Instead)

In today’s competitive market, too many custom home builders find themselves trapped in a cycle of bidding against other builders. They spend countless hours preparing detailed proposals, only to lose out to lower bids or, worse, win projects with razor-thin margins that leave little room for inevitable challenges. But what if there was a better way? Dave Reagan, a 35-year veteran builder, discovered a system that completely eliminates the need to bid against other builders. Instead of competing on price, he gets paid upfront and maintains healthy margins on every project. The Secret? Pre-sold Custom Homes The traditional model of bidding against other builders is fundamentally flawed. Here’s why: You’re Starting from a Position of Weakness – When you’re one of multiple builders bidding on a project, you’re immediately commoditizing your services. The conversation becomes primarily about price rather than value, expertise, or relationship. You’re Investing Time with No Guarantee

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