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View Full Version : Need Advice on Bid


Katzman
11-01-2006, 10:48 PM
We just went through our first year in the business and did pretty well. We were asked to quote a condo complex of $300-$400,00 homes for next year. Most lots were about 1/3 acre, some were larger. Complex had one large common area with a pond, which we quoted separately. There were 39 condos in the complex. Going rate in our area for professional companies is $75-$80 per hour. We bid 30 of the properties at $25/week, 5 at $30/week and 4 at $40/week. We were informed we were the highest bidder and did not receive the job. Are our prices out of line? The company that has the business now is a father and son outfit (nothing wrong with their work, but the people in the complex were complaining about their appearance and equipment). Just wanted to know what others out there may bid for a job like this one.

jsf343
11-01-2006, 11:38 PM
Wow, you were the highest?! I know halloween is over but that is scarry.
seems like those are a bit low to me. Sorry you lost out on it. maybe they will fire the other outfit and hire you guys.

Katzman
11-01-2006, 11:56 PM
Thanks for the reality check. We thought we underbid a little bit because we really wanted this job. It will be interesting next spring to drive through the complex and see what services they are getting. It's been a learning experience. Seems like the more money people have, the less they want to pay.

Katzman
11-02-2006, 12:05 AM
I forgot to add....every lawn had to be bagged each week. Clippings had to be hauled away.

Raven386
11-02-2006, 12:15 AM
sorry to hear you didnt get the job! .... with every lawn being bagged... that sounds to be a bit low. id add $$ to each lawn.. and then even more $$$ to haul it away...

Raven386
11-02-2006, 12:16 AM
Seems like the more money people have, the less they want to pay. ......yea that pretty much sums it all up.

topsites
11-02-2006, 03:09 AM
Thanks for the reality check. We thought we underbid a little bit because we really wanted this job. It will be interesting next spring to drive through the complex and see what services they are getting. It's been a learning experience. Seems like the more money people have, the less they want to pay.

I think over the years you'll find this happens on a regular basis, I wouldn't lose much sleep over it.
I found the best way to think about it is, since fools and their money are soon parted, rich folks in general are pretty clever.
It's not all bad but there's certainly a great chance of taking a big loss with these large properties.

Chances are pretty good you priced it right if not low, me thinks they wanted to really get a DEAL but I doubt you want that.
Bit of a numbers game, maybe something to do with the 9-out-of-10 rule, but I dunno for sure.

huh
11-02-2006, 03:28 AM
did you look at it on a per unit basis only or on a total acre as well

39 units @ 1/3 acre each = 13 acres

you bid 1060 a week / 13 = 81.50 an acre

I would be surprised you were the highest, but the other guys must be making a day of it and happy for little or no windshield time

Katzman
11-02-2006, 10:25 AM
We were required to give them a per unit charge. They wanted to make sure the homeowners with the larger lawns were charged more than those with smaller lawns. The lawns weren't that difficult (low curbs, landscaping edged, drains you could drive over). They told us their present provider took 4 guys twelve hours per week (48 hours). We thought we could do it with 3 guys in 10 hours. Still only $35.00 per hour gross. After covering overhead, the profit wouldn't be much, but we thought it was worth it to grow the business. Since you brought up quoting by the acre, for future reference, how would you calculate that?

huh
11-02-2006, 02:06 PM
well it would be hard without seeing the property, but I would have started with about 100-115 an acre then either bid up a bit for a ton of trimming ect. (unlike just one large acre) and then maybe bid back down a bit for no windshiled time

so probably 95-100 an acre so I would have lost out for sure.....you probably did the right thing, but sorry you did not get the job....there will be others!!:usflag:

lawnwizards
11-02-2006, 04:39 PM
for 13 acres i would've bid 1150-1400 depending on the difficulty. i guess i would've lost out too.