Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #1  
Old 10-07-2013, 01:24 AM
Chilehead's Avatar
Chilehead Chilehead is online now
LawnSite Bronze Member
 
Join Date: Feb 2007
Location: Stockbridge, GA
Posts: 1,850
Chilehead says, "This is the BIG ONE."

Okay, people.....in a few days I will be placing a bid for grounds care on a major, internationally recognized entity here in Atlanta. I have never done a bid this big, so I need a little bit of guidance. First, I am not going to divulge where this bid is taking place because of it's importance. Let's just say this entity did near $2 billion in gross revenue last year, and being contracted by it would give me the status of "local celebrity". Anyway, the total area to be maintained is 5 city blocks, with numerous structures throughout (akin to being littered with condos or an office park). Total turf area measures 2.5 - 3 acres. 800-900 shrubs of varying sizes. Some areas get chemicals, some do not. Annual color and mulch are not part of this bid.
Where I need help is deciding whether to bid at my normal rate, or to bump it up due to the prestige this place carries, or bump it down due to the sheer volume of work. My current hourly rate per man hour is positioned at a competitive price (but not the cheapest) that gets me a comfortable profit margin.
Most (95%) of my business is high-end residential (i.e. mega-mansions, estates). My commercial work is a condominium complex that covers about an acre.
I'd really like to hear from some of you that work for nationally-acclaimed entities/businesses, and what practices you use for such. Landing this account would be my American dream come true--thanks in advance for your help.
__________________


Simplicity is the ultimate sophistication. --Leonardo da Vinci

http://integritylawnpro.com
Reply With Quote
  #2  
Old 10-07-2013, 07:33 AM
gcbailey's Avatar
gcbailey gcbailey is offline
LawnSite Bronze Member
 
Join Date: Mar 2012
Location: southern WV
Posts: 1,782
I would almost be willing to bet, if it is as prestigious as you say, everyone bidding on it will be at their absolute bottom dollar in order to get the bid for "name recognition" alone.
Reply With Quote
  #3  
Old 10-07-2013, 08:30 AM
Chilehead's Avatar
Chilehead Chilehead is online now
LawnSite Bronze Member
 
Join Date: Feb 2007
Location: Stockbridge, GA
Posts: 1,850
That better NOT happen, but I can see why it would. One principle I always follow is to not bid myself into a hole.
__________________


Simplicity is the ultimate sophistication. --Leonardo da Vinci

http://integritylawnpro.com
Reply With Quote
  #4  
Old 10-07-2013, 09:35 AM
gcbailey's Avatar
gcbailey gcbailey is offline
LawnSite Bronze Member
 
Join Date: Mar 2012
Location: southern WV
Posts: 1,782
I'm sure that you have all the big boys down that way to compete against. Around here the "premiere" properties are hospitals and a few global mining manufacturing companies. I do know that the hospitals always go lowest bidder. We've always been invited to quote them and the returns are laughable. This past year for 4 acres mowing, trimming, edging, maintaining parking lot perimeter (blowing off clippings) the winning bid was $275/week. And it's an outfit from over 100 miles away.
Reply With Quote
  #5  
Old 10-07-2013, 09:59 AM
Chilehead's Avatar
Chilehead Chilehead is online now
LawnSite Bronze Member
 
Join Date: Feb 2007
Location: Stockbridge, GA
Posts: 1,850
Quote:
Originally Posted by gcbailey View Post
I'm sure that you have all the big boys down that way to compete against. Around here the "premiere" properties are hospitals and a few global mining manufacturing companies. I do know that the hospitals always go lowest bidder. We've always been invited to quote them and the returns are laughable. This past year for 4 acres mowing, trimming, edging, maintaining parking lot perimeter (blowing off clippings) the winning bid was $275/week. And it's an outfit from over 100 miles away.
I'm sure you're right. All the large outfit down here work on 3-5% profit margins and use immigrant labor here with work visas (and many are illegal). If I were to win the bid, the real money to be made would come from all the executives who have mega-mansions who would see my work and say, "Wow, that looks great! Could you give me a quote?" Having this property would be great, but under no circumstances will I bid myself into oblivion.
__________________


Simplicity is the ultimate sophistication. --Leonardo da Vinci

http://integritylawnpro.com
Reply With Quote
  #6  
Old 10-07-2013, 10:11 AM
gcbailey's Avatar
gcbailey gcbailey is offline
LawnSite Bronze Member
 
Join Date: Mar 2012
Location: southern WV
Posts: 1,782
sounds like you've got it right. We do the properties for several business owners we take care of. But I still don't work on a tight enough margin that if the price of fuel was to go up and stay up that it would screw us for the year.

How many guys are going to have on it? Did they give a bid packet or do they want something just made up and presented to them? Most of the larger ones that we do have a pre-made bid packet stating what they want and we just basically fill in the dollar amount.
Reply With Quote
  #7  
Old 10-07-2013, 10:26 AM
Chilehead's Avatar
Chilehead Chilehead is online now
LawnSite Bronze Member
 
Join Date: Feb 2007
Location: Stockbridge, GA
Posts: 1,850
Quote:
Originally Posted by gcbailey View Post
sounds like you've got it right. We do the properties for several business owners we take care of. But I still don't work on a tight enough margin that if the price of fuel was to go up and stay up that it would screw us for the year.

How many guys are going to have on it? Did they give a bid packet or do they want something just made up and presented to them? Most of the larger ones that we do have a pre-made bid packet stating what they want and we just basically fill in the dollar amount.
How MANY GUYS?!?! I thought everyone on here knew I was a solo op! Seriously, I could do the whole thing myself in 6-8 hours depending on turf conditions. However, I am going to budget two days time for this property: one day for turf maintenance and one day for everything else. I have a shrub trimming crew called Cutless Granular to help out too. I am to present my own syllabus of what's needed along with my prices--there is no bid packet.
__________________


Simplicity is the ultimate sophistication. --Leonardo da Vinci

http://integritylawnpro.com
Reply With Quote
  #8  
Old 10-07-2013, 10:35 AM
gcbailey's Avatar
gcbailey gcbailey is offline
LawnSite Bronze Member
 
Join Date: Mar 2012
Location: southern WV
Posts: 1,782
I don't pay much attention to a lot on here, sorry. I just mainly like looking at the "toys". I think your biggest issue is going to be the shrubs, hopefully your sub is more than equipped to handle it in a timely manner. When you say "chemicals" are you referring to weed applications, treating for outdoor pests, what?
Reply With Quote
  #9  
Old 10-07-2013, 04:46 PM
Getmow Getmow is offline
LawnSite Senior Member
 
Join Date: Dec 1999
Location: VA
Posts: 438
It looks like you already know the answer to your question. You company's website presents a very professional image and you want that exposed on this prestigious property. Instead of cutting your profit margin to sell your services - sell yourself and your company during the presentation of the bid. Offer them what the others cannot - the personal service that your site advertises and the list of your high end properties.

Good luck
Reply With Quote
  #10  
Old 10-07-2013, 07:36 PM
Chilehead's Avatar
Chilehead Chilehead is online now
LawnSite Bronze Member
 
Join Date: Feb 2007
Location: Stockbridge, GA
Posts: 1,850
Quote:
Originally Posted by gcbailey View Post
I don't pay much attention to a lot on here, sorry. I just mainly like looking at the "toys". I think your biggest issue is going to be the shrubs, hopefully your sub is more than equipped to handle it in a timely manner. When you say "chemicals" are you referring to weed applications, treating for outdoor pests, what?
Full lawn chemical program, and spraying the beds.
__________________


Simplicity is the ultimate sophistication. --Leonardo da Vinci

http://integritylawnpro.com
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 03:39 AM.

Page generated in 0.08117 seconds with 7 queries