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j9sheldon
03-13-2007, 12:53 PM
Hi all,

I am new to the business and have only done 2 jobs. I am looking for advice on bidding. I am still struggling with how to bid a job correctly. I want to make money, but I also want value for my customer. Do you do it per zone or use a multiplier of the cost of material. Just looking for some different ideas on bidding ( I looked for some books, but was not really successful finding for irrigation) . Any and all advice is greatly appreciated.

SprinklerGuy
03-13-2007, 01:06 PM
Easiest way to bid.....this is based on YEARS of experience...but first you need to know some important stuff...you cannot bid successfully without this knowledge. Ready?

How much do you need to make personally each day to live the way you want to live....i.e. pay your bills, pay yourself into a savings account, and eat drink party whatever it is you want to do.

How much does your company need you to make each day to pay it's bills and make a profit?



Here is the hard part....add those two things up...they better be accurate.....that is your daily labor rate. That is how much labor you better bill each day....so if it is a 2 day job, multiply that rate x 2.

Now the harder part....figure out exactly what parts you will need for the job.....figure out how much they cost at your supplier....add that up.

Now add up other expenses related to that job....equip rental etc.

Total it up..that is how much the job should cost.


Too low compared to others in your area? Congratulations!!!! You will dominate your market..and you don't have to worry about being called a lowballer...because you are making enough each day to cover your bills and your company bills....and you're living a decent life......F*ck em if they can't compete.

Too high compared to others in your market?

Better reevaluate your costs and your needs.


Good luck.

That will be $5000.00 please.

landscape guy
03-13-2007, 01:27 PM
:canadaflag: I met my competitors and talked pricing just to make sure our pricing stays consistent with others ,prices in my area change a little from area to area.

bobw
03-13-2007, 04:12 PM
:canadaflag: I met my competitors and talked pricing just to make sure our pricing stays consistent with others ,prices in my area change a little from area to area.

Really? I know lots of my competitors, and especially around this time of the year, we talk quite often, meet up at supplier shows, etc.

I wouldn't trust a single word out of any of their mouths...and I hope that they're smart enough to not trust a word out of mine....

Wet_Boots
03-13-2007, 05:39 PM
....and if you could, well, there is such a thing as price fixing.

SprinklerGuy
03-13-2007, 06:26 PM
LOL..you beat me to it...but I was going to use a big word.

COLLUSION

:)

Mjtrole
03-14-2007, 02:22 AM
Hi all,

I am new to the business and have only done 2 jobs. I am looking for advice on bidding. I am still struggling with how to bid a job correctly. I want to make money, but I also want value for my customer. Do you do it per zone or use a multiplier of the cost of material. Just looking for some different ideas on bidding ( I looked for some books, but was not really successful finding for irrigation) . Any and all advice is greatly appreciated.

Do yourself a favor and do Three things:

1) Never ever think of the words "the going rate" because as often as you hear it, there is no such thing, each company has it's own costs for labor, labor burden, overhead and everything else that goes into running a business.

2) Buy and read books by charles van der kooi and/or james r huston(sp?), expensive maybe but worth a thousand times what you have paid for it and after you do you will thank me.

3) NEVER EVER, EVER, EVER, EVER Work for free, your dentist doesn't, your accountant doesn't, your machanic doesn't and when you go to mcdonalds for a big mac they make sure you pay for it also.