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first commercial bid, need advice please

Discussion in 'Lawn Mowing' started by Sweet Tater, Apr 1, 2008.

  1. Sweet Tater

    Sweet Tater LawnSite Silver Member
    Posts: 2,123

    ok guys, I don't beg for help often but I need advice. I received a call today from a large chain fast food place.
    I already have my firgures based on what he said they pay now. Its a weekly service, mulch and shrubs twice a year. Its a 12 month contract..... My question is when writing the bid do I do it as per month totals, or as a year total. I am totally clueless how to do this at all, but am excited that my ad in the paper is paying off and I could get two of these fast food places.. Got to get a bit in 48 hours. Thanks for the help guys.
  2. M&MLawn

    M&MLawn LawnSite Member
    Posts: 132

    Congrats on the request for bid for commercial. What we tend to do on yearly contracts is we say the annual rate is $12,000 to be billed at $1000 per month for 12 consecutive months. Sometimes we offer a 5-10% discount if they pay upfront for the year.

    Hope this helps to answer your question.

    The guy told you what they are paying now...does it jive with what you would need to be making yourself?
  3. Sweet Tater

    Sweet Tater LawnSite Silver Member
    Posts: 2,123

    It jives quite nicely. I actually probably would have WAY under bid this (being my first and no experience) But for what they have what they are paying now is high. But I am going to bid close just because I figure the last guy muct have a better judgment about it.
  4. Sweet Tater

    Sweet Tater LawnSite Silver Member
    Posts: 2,123

    any one else?
  5. Albery's Lawn & Tractor

    Albery's Lawn & Tractor LawnSite Bronze Member
    Posts: 1,675

    I break a bid down and give the yearly price of each service (mowing, prunning, mulching,etc.) then give a total amount and devide by 12. Depending on the clients pay policy (net 30,60,90) its wise to offer a slight 2-3% discount if paid in 15 days.
  6. TNT LawnCare Inc.

    TNT LawnCare Inc. LawnSite Bronze Member
    Posts: 1,157

    Make sure you have a contract that binds them to your yearly service, as stated have them pay once a month . Most comercials do anyhow.
  7. Sweet Tater

    Sweet Tater LawnSite Silver Member
    Posts: 2,123

    Do you send along a copy of your contract with the proposal, or wait? Sorry I am totaly ignorant to commercial bids.
  8. M&MLawn

    M&MLawn LawnSite Member
    Posts: 132

    I wait. I send the proposal first and once they give it a go I send the contract to be signed.
  9. Sweet Tater

    Sweet Tater LawnSite Silver Member
    Posts: 2,123

    Thanks guys, some good info and I appreciate it.
  10. DaveinSWFL

    DaveinSWFL LawnSite Member
    Posts: 178

    I also break the total over 12 months. Submit proposal and when it's a go, I submit the contract. Good luck to you.

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