View Full Version : New Commercial Bid Formula
03-26-2002, 02:17 PM
Well I am tired of losing out to low ballers that seem to be quite a bit less in their pricing. I have lost out on several commercial bids this year so I have revised by bidding formula.
What ever I think the price should be / 2 = bid Price
($100 / 2 = $50).
I obviously seem to be too high priced and maybe this will get me a few jobs! Let me know if I should start using this formula.
LAWNS AND MOWER
03-26-2002, 02:37 PM
How about this formula.
What you think the price should be times 2 then divide by 2.
Example-- $50 x 2 = $100 then divide by 2 and you get $50!!!
LAWNS AND MOWER
03-26-2002, 02:37 PM
I'll sub out all my jobs to you...have at it!
Seriously I think the big problem with being lowballed is that the guys being beaten out of the bids are taking the liberty of adding in services not in the bid request. Why include trimming and edging if the bid doesn't spell it out? Bid only on what is required, once you get the contract add in the extras later. Thats how its done around here anyways...
03-26-2002, 02:48 PM
i Know where you are coming from. Dont get to upset..... This commercial property that i just bid,,, i thought it was worth a good $130.00 bucks,, so i said,, ah ill bid $110.00 then i will get it for sure.... NOPE. Some guy same in there and bid $75.00 It really sucks when you are tring to make a living in the business and some scrub comes in with a craftsman lawn mower and gets the job even though he does a crappy job.. And he will probably still make great profit, cause his only overhead will be the gas that he is burning!!:angry:
03-26-2002, 03:34 PM
Fastrunner, not trying to argue with you here, but thats how the cycle starts...you thought it was worth 130 and bid 110........maybe the guy that bid 75 also thought it was worth 130 and really wanted to get that job for some reason.
I don't agree with him bidding 75 if it was worth 130 , but you bid less to get the job yourself and you were outbid.
I remember years ago bidding on the local library lawn maintenance project. 15 different bids came in ranging from 750 a month to 3500 a month.......it was a joke......but, what do you do?
I saw a bid sheet for a certain city to maintain all of their parks. I forget all of the specifics except some pricing.
low end $45,000
high end $450,000
most fell into the 2XX,XXX range
03-26-2002, 09:22 PM
Just wondering but I thought that commercial properties generally want some type of insurance, license, and a tax ID#. I really don't see how these guys can afford to make these suicidal bids and stay in business. Seems to me that they have to make at least some of the same commitments as everyone else. Or do they?
The lawnguy has a point ...don't add anything extra ... What really pisses me off is when they dont give you any specs ... then your basicaly trusting that they will compare apples to apples.
Other contracts I have come across ask too much... watering a property that isnt irrigated... how am i supposed to quote that??? Top dress or sod any bad areas...just really vague requests ... I added in my own stuff to there 40 page contract...water truck$85.00 / hr etc etc ...
I am learning really fast that the only way to make any money ( for us ) is to go after the customers that will pay for quality and will pay the price we demand for it. We do have commercial accounts like that .... they dont shop around.
There are some companys you will never out bid...they go for major volume...small margins ... Thats not for us ... Construction is our main stay.
I MOW ALONE
03-27-2002, 12:14 AM
i,d like to know how some of you guys find out what a contract goes for after you have bid on it and didnt get it just would like to know thanks in advance
Unless it's a public tender then I dont find out... usually its a comment like "your way to high" ...cant hurt to ask them. Most times I dont care what it went for if I didnt get it... our price is our price .
03-31-2002, 09:14 PM
DON'T CUT YOURSELF SHORT DO GOOD WORK , CHARGE A FAIR PRICE, INFORM YOUR CUSTOMERS OF INS. POLICIES YOU CARRY. LIABILITY, WORMANS COMP. ETC. & MAYBE INFORM THEM OF THE RISKS OF DEALING WITH CONTRACTORS WHO DON'T OFFER THESE THIS WILL WEED OUT SOME OF THEM.
LawnPro in NC
04-01-2002, 12:18 AM
Work for what your worth. If you damage your equipment doing a job cheaper than you think it should be done then who pays..... you do. the customer will not care and wonder why you haven't finnished the job.
I learned this early early I have been in the biz less than 1 yr. and first thought if i was working at least I was making some money til I broke something. 450.00 on a 40.00 property I was doing for 20.00. Now I give the price and that's That occassionally I'll bid a little higher than I actually think it's worth esp on residentials. then cut the price couple bucks they think they got deal and you still win. If they want it cheaper tell'em to buy a mower.
that's my peace on that.:angry:
04-01-2002, 12:16 PM
remember within the commercial category there are huge differences between small vs. large.
small commercial-convinience stores, small multi unit business buildings, etc.-they are just like bidding houses. Lowballing works, often they don't care about ins., etc. Price shopping occurs large.
and then they go up in size. once you get up in size, say the local mall, etc you won't get lowballing working. these contracts know they need a real company, who can handle the job. And you must prove you can handle the job-year round, including snow removal. NOT just plowing, but removal.
if your the lowest bid at say the ford plant, they will figure something is up. if your the highest, your in the game but only if they want top quality, not all do.
i would imagine the town above went with a mid range bid? maybe $300 000?
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