lost a bid because i was too low

Discussion in 'Lawn Mowing' started by lawnrangeralaska, Apr 21, 2006.

  1. lawnrangeralaska

    lawnrangeralaska LawnSite Senior Member
    Posts: 436

    I was asked to bid on three banks. I lost two of the three because i was too cheap they think. And that with the raising costs in gas that i will just quit half way through. When they told me this i responded with it "costs me 25 to mow your lawn and i am charging you 125$ to mow your bank that will take me less then one hour to service" and if you want i can charge you $225 which is $25 less then the guy doing it now if you wish. Then i reminded him that my equipment is the same as the contractor sevicing them now and im just cheaper then they are and do the same work if not better. Although the manager is letting me do one of the smaller lawns, but it requires alot of push mowing and trimming so it will be more then the bigger wide open lawn. He told me that he is going to test me out for one year and see how i do then allow me to do the other work if he's happy with my job. Then i will remember to raise my rates around 100$ over my bid for this years. :weightlifter:
     
  2. steve45

    steve45 LawnSite Bronze Member
    Posts: 1,325

    A friend of mine has bid on several contracts for the federal government. He figured his costs, figured in a nice multimillion dollar profit, then doubled it. He was turned down because his bids were 'unrealistically low'...

    No wonder our national debt is out of control!
     
  3. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    I hope you realize you really need a pushblower you can take through the parking lot every once in a bit to keep that clean, and should it snow they might expect that cleanup too, and don't forget leaves and tree / brush pruning or replacing... What about mulch, they don't have any of that? You also need to ask about the lot stripes, I mean the white lines of paint used to delineate parking spaces and such, make sure you're not supposed to do that and if you are, well ... Then their sign may need cleaning or re-painting.

    A lot of commercial places want serious beautification all year long, that's why they pay top dollar but in the end the profit is so-so because it is a LOT of work as they weren't expecting you to just cut and trim and see ya!
     
  4. Bustus

    Bustus LawnSite Member
    Posts: 181

    I think their philosophy is that the more they spend, the better it will look, and the less problems they will have. They don't mind spending the money, especially since they can write it off at the end of the year.
     
  5. Jay Ray

    Jay Ray LawnSite Fanatic
    Posts: 6,510

    One company I worked for always threw out the low bid for all goods or services purchased. If there were a lot of bids the purchasing department used a statistical program to drop all the bids that were under the average by a certain amount of standard deviations, or some such thing. The maintenance department did all the mowing and landscaping, but they were no good on air conditioning.
     

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