I under bid now I'm to low, now what?!?

Discussion in 'Lawn Mowing' started by Willis, May 15, 2003.

  1. Willis

    Willis LawnSite Member
    Posts: 176

    I under bid now I'm to low, now what?!?
    Do we take the chants in loosing the costumer by sending them a letter stating the increase do to unforeseen costs in doing business or maybe wate till next season, or what? Pleas help Thanks.
    P.S Increase is only a couple of bucks a week.
     
  2. Duncan Lawn Care

    Duncan Lawn Care LawnSite Member
    Posts: 79

    I would just wait till next year and raise the rate then. Word of mouth might just cost you a few more accounts if you try and raise the price in season.
     
  3. John Gamba

    John Gamba LawnSite Fanatic
    from ct
    Posts: 10,812

    Duncan Said It!
     
  4. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    How low are you? I would talk to the customer in person and explain... If they have a problem with the increase maybe ask them to meet you half way for this season.

    If you don't... Midway through the season your going to hate doing the account. You will probably try to cut corners to make up the difference and get sloppy. They will get comfortable with the price..
     
  5. Turf Medic

    Turf Medic LawnSite Bronze Member
    Posts: 1,073

    Not to be rude but are there "unforeseen increases in costs" or did you just screw up. Is it residential or commercial. Were you the only person bidding on the job or did the customer have several bids and chose yours because it was the best deal for them. If you can't afford to do the job it would probably in the best interests of you and the customer to ask to be released from the bid and let them choose the next best bid. Unless there are real unforeseen increases in costs then you might be able to approach them with an honest justification for the increase in price.
     
  6. Albemarle Lawn

    Albemarle Lawn LawnSite Bronze Member
    Posts: 1,544

    Last year I had one we did at $750 a cut...way to low, and raised it to $1250/ cut this year.

    We WAY underbid and ate it every time. That money is forever lost but the customer isn't.

    Are you talking about unerbidding an $80 job or a $1500 job?

    KB
     
  7. crazygator

    crazygator LawnSite Bronze Member
    Posts: 1,048

    Please no one take this any wrong way.

    But I come from a different school. If you said a price, then you stick to it no matter what. If you screwed up, oh well. You will learn, and fast when you under bid.

    Your word should be as good as a contract, and yes only in MY opinion.

    I hope you get it worked out!
     
  8. o-so-n-so

    o-so-n-so LawnSite Bronze Member
    from Alabama
    Posts: 1,218



    You should never never never submit a bid based on another mans bid. Know your costs and bid accordingly. If your low and win the bid...you make money....you lose the bid...move on...we do this to MAKE money. If you had 100 accounts that didn't generate a good profit, you would be better off sitting at home.




    Always listen to your client as you walk the property. They will tell you what matters to them in most cases. Remember that. If at any time they add something after an agreement is met, you should add more $$$$.




    $8.00 a month I would forget and do the client an outstanding job. If its a high profile property (pillar of the community or someone that deals/meets/knows alot of the local people) then you need to start a referral program with this account. You will get the $8.00 back quickly. If its a dead end account, go up next season.

    Best of luck to you...
     
  9. Gr grass n Hi tides

    Gr grass n Hi tides LawnSite Bronze Member
    Posts: 1,020

    I'm with crazygator. I fouled one up recently, but it was more of a mistake judging character than underbidding. I cut a big 1.25 acre plot (12 in. deep clover in some spots) next to a swamp for a low price, but based upon the understanding that I would be back weekly. After the first cut the lady told me "well you know what we've decided to try and fix our old riding mower & we'll take it from here.....we'll call you if anything changes."

    I simply said, okay. If she ever does call back I'd do the work only if I had a signed contract on day one, plus the rate just went up.
     
  10. grassdaddy

    grassdaddy LawnSite Senior Member
    Posts: 565


    I'M with the gator 100%!!:eek:
     

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