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FLCthes4:11-12
04-03-2011, 09:10 AM
So I had a customer call up about a proposal that I submitted a little over a year ago. It was for nearly 800 three gallon shrubs to replace hedges down on the sides of side walks down a major road in my town. Well she was pretty persistent that I keep my original price. I informed her that if her committe aggreed that they would like some work done that I would re visit my numbers and see what I can do. Well she calls back the next day saying they are in agreement want to go ahead and give me a deposit check next week. I still made no promise on the price but said I would try to keep it close. She still is very persistent that I can do it for the same. So I go over and over my numbers and wholesale plants in that size and variety have gone up 57% since febuary of 2010. So I'm calling tomorrow first thing to inform her that the price is going to be 6k more.
Couple of things that peaked my interest:
I wonder if they got more prices against my first proposal (not bid work but negoiated work)
Last time they got public heat about spending money (even though it is not sponsered by tax money)

But this would be a great job with alot of visiblity of my small company. It would put me working in front of about 20 business in a very busy shopping and dining area.

But the margin on the first proposal would be so thin that if any overage or problem occured it would be hard to over come.

Any thoughts?

Thanks

Get Some...
04-03-2011, 10:43 AM
Talk to her, in person.
Maybe 10% more than the first bid will be enough to make it more attractive to you.
Actually 9% sound's better...........from her point of view.

TurnerLawn&Landscape
04-04-2011, 05:34 PM
If your cost has gone up 57% then so should hers.....why would you want to make less money on the job this year than last year? Inflation, inflation, inflation, not to mention the gas you are going to be using to deliver 800 plants.

JB1
04-04-2011, 05:56 PM
its hard to believe the plants went up that much.

KrayzKajun
04-04-2011, 06:02 PM
wht if you stepped up to 5gal-7gal plants tht way you could use 400 or so plants instead of 800

grassman88
04-05-2011, 05:51 PM
wht if you stepped up to 5gal-7gal plants tht way you could use 400 or so plants instead of 800

good idea bigger plants fill bigger area but still they shouldnt be telling you that you can stay at the same price its your busness and you know what it cost to run dont lose money cause they dont undersand that prices are rising

FLCthes4:11-12
04-05-2011, 07:02 PM
It would be harder to use bigger plants. The specs are alread Ruby Loropetalum spaced on 42" o.c. Not hard to believe that wholesale plants have gone up that much since last year when you stop and think. Last year they stil had a surplus crop due to all the growers during the housing boom. It takes about 18-24 months to grow most 3 gallon plants here in the south. Meaning 18 months ago everyone was going broke and cutting back or going out of business. I spoke with them increased the materials to current prices. I have a meeting scheduled for tomorrow afternoon. I'll let you know what happens. Oh and a side note that made me lol. The contact lady asked if I checked with Lowes lmao

pitrack
04-07-2011, 08:11 PM
So she wants to honor the price you gave her last year? I like Turner's answer. Your price went up, so should hers. You need to tell her that too.

LoweJ82
04-07-2011, 08:40 PM
It would be harder to use bigger plants. The specs are alread Ruby Loropetalum spaced on 42" o.c. Not hard to believe that wholesale plants have gone up that much since last year when you stop and think. Last year they stil had a surplus crop due to all the growers during the housing boom. It takes about 18-24 months to grow most 3 gallon plants here in the south. Meaning 18 months ago everyone was going broke and cutting back or going out of business. I spoke with them increased the materials to current prices. I have a meeting scheduled for tomorrow afternoon. I'll let you know what happens. Oh and a side note that made me lol. The contact lady asked if I checked with Lowes lmao


O how I hate the "lets check at lowe's" or "have you checked at lowes?"

Patriot Services
04-07-2011, 08:43 PM
Sounds like they got recent estimates with current prices and are trying to pull shenangans. These boards and commitees are slick like that. I serve on my HOA and have to pull them back to reality sometimes. Explain in simple terms, everything went up in price. Why? Everything in our business is fuel cost based. In the future put a 30 day experation clause in your bid language.
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FLCthes4:11-12
04-07-2011, 10:17 PM
all my proposals include only good for 30 days. i adjusted price, meeting went decent, said they would let me know on monday. this job would be nice it would make most of my may.

FLCthes4:11-12
04-22-2011, 10:02 AM
Update: For better or worse I got the job, deposit check and probably a headache but I gotta try. I stuck to my increased price and actually did a little better by limiting my liability with their existing irrigation system. Maybe I will post a few before, during and after pics. The job while is not that huge is very high visual impact, and will make a big change as the hedges go down either side of the road for a mile.