I call it the wet finger estimation method… lick your finger hold it out the window….. uh huh….$50! that's my bid.
Some of these guys try and site 'experience' and skill with 'eyeballing' but it truth they just make stuff up as they go along.
It's more than 50% of the industry.
And when someone comes along that underbids them they get their panties in a twist.
I saw a bid last year for 50 municipal properties.
My number was 57,000.
The winning bid was 50,000
There WERE bids for 44,000 and 48,000 but they were both deemed to be 'irresponsible'
Several of the other bids were 60k-64k
and ONE guy was 116k….Woah what? What did I miss????
That was 11 months ago.
I juuuuuust got to talk to that guy last week. "Hey man, what was up with your number?"
I knew I wasn't going to get it, so I didn't spend any time on the bid, I threw a high number out there to make sure I didn't get in trouble, incase for some reason I DID get the bid…BUT what I REALLY wanted was the bid abstract, so I could see where EVERYONE ELSE's prices were at .
Sharp cookie this one.
Just because someone has a higher number, doesn't make it "the right number"
Just because someone has a lower number doesn't make them a lowballer.
If you are licking your finger out the window as you drive by a property at 20 mph and don't put a lot of thought into your price and don't know your numbers.
Someone with a sharp pencil deserves that work more than you.
If you know your numbers, and you put your bet number you could out there, and you STILL got beat… the dude could be operating his business out of grandmas garage.
Doesn;t make his operation "ILLEGAL"
he just has lower overhead than you.
I met this guy once who ran his whole lawn care business off his house boat.
75% of his customers were on an 11 mile long lake.
He could literally take his office and dock it at a customers house.
He kept trucks and equipment in employees driveways.
Dude had stupid low overhead.
nothing he was doing was illegal.
I'm not saying it was the right way to run a business, but it was also not the wrong way either.