Is your bid 1/2 if mine?

Discussion in 'Lawn Mowing' started by The Ranger, Jan 18, 2006.

  1. The Ranger

    The Ranger LawnSite Member
    from NE Ohio
    Posts: 208

    There are a few primary reasons you see bids on the same job being so far apart. Maybe not 50 to 15 as reported in a lower post, but I can get a quote for mow/blow everyday for half the highest quote. Companies that spend the time and effort to bid the job often loose it to someone who leaves quite a bit of money on the table. Why is this? In my 30+ years of experience in the green industry it all boils down to this; companies or individuals not knowing their true costs (overhead) and the same not having enough business experience, knowledge or training to bid it correctly. If you feel you are in this group and want to improve you business skills here are a few tips. 1. Take an adult education business class. 2. Join a green industy group and attend meetings to discuss issues related to what we do. PS There is nothing like sharing ideas with someone who has been there, done that. 3. Be diligent about tracking your expenses and KNOW WHAT YOUR OVERHEAD IS BY GETTING A PROFIT/LOSS STATEMENT PER MONTH OR QUARTER. Make sure you understanding it and know what profit is. 3. Understand as your company grows your role and job description changes. 4. Subscribe to industry books and read articles to improve your knowledge. Now...if your sitting there reading this post and saying to yourself....."I don't have time for that" realize this.... If you don't take the time to improve your business skills you are only hurting yourself and the whole industry you are working in.
     
  2. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    Well put. Too many guys are "playing" business instead of being in business and there is a huge difference and many don't realize that. These are hardworking guys but they just don't understand that because they charge someone $20 to mow their lawn they didn't just make $20.

    When folks say hey "work hard today" I always like to say, "No, work smart today"...there is a difference.
     
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    and if nothing more, have a BUSINESS PLAN
     

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