Rudolph the Red-Nosed Reindeer had a very shiny nose!

As a young man, I needed some extra money, so I decided to advertise that I would do random weekend yard work, leaf removal, and general clean-up work. A buddy of mine told me his Grandmother lived on a large piece of land, and every year, she hired someone to remove leaves. I met with the lady and provided my price, which I felt she would immediately accept, but instead, she looked at me and said, “Have you ever heard of Rudolph the Red-Nosed Reindeer?” At first, I thought she had lost her mind, but then she started humming, and so did I, and then we both laughed. She asked me, “Why did Rudolph get the main job?” I said because he had a shiny nose. She said, “Exactly, so my question to you is, why would I pay you more when I can get the work done at a much lower price with the other quotes?” That day, I learned a hard business lesson: if you do not have a shiny nose, you are just another good reindeer.

Unique, different, special, a shiny nose—that is what separates a product or service from becoming a commodity. In construction, contractors pursue projects, bid, manage the project, and ultimately deliver the same work with nothing different from what anyone else would provide, just another one of the reindeer. This results in lower margins and a cutthroat competitive environment, forcing lower overall pricing or, in many cases, gauging on one project to make up for a loss on another. If you want to become a bottom-line contractor versus a top-line contractor, increase your margins and stop doing everything like everybody else does. Get a shiny red nose!

For example, estimate differently from everyone else. Create a proprietary process that is unique to you. Manage projects in a unique way that focuses on efficiencies, not just the old style of “get it done.” Make sure you put the proper controls in that separate you from all the other contractors. Be a data-driven entity operating like a business, unlike the old-school version of contracting, where everyone does the same. Get a shiny red nose and be unique!

If you are content just being one of the other reindeer, then do nothing, keep doing what you have done forever, chase work, drive total margins lower, chase that top line of the income statement, struggle with cash, and hang on for that one project a year that does great and keeps the ship afloat. Or figure out what you can do to light up your nose, be that one reindeer that stands apart from the rest…be a Rudolph! For the record, I did that lady’s yard, which ended my yard work career because I did not enjoy being just another reindeer!