New Commercial Bid Formula

Discussion in 'Lawn Mowing' started by Dave Feder, Mar 26, 2002.

  1. Dave Feder

    Dave Feder LawnSite Member
    Posts: 5

    Well I am tired of losing out to low ballers that seem to be quite a bit less in their pricing. I have lost out on several commercial bids this year so I have revised by bidding formula.

    What ever I think the price should be / 2 = bid Price
    ($100 / 2 = $50).

    :D

    I obviously seem to be too high priced and maybe this will get me a few jobs! Let me know if I should start using this formula.

    :angry:
     
  2. LAWNS AND MOWER

    LAWNS AND MOWER LawnSite Bronze Member
    Posts: 1,129

    How about this formula.

    What you think the price should be times 2 then divide by 2.

    Example-- $50 x 2 = $100 then divide by 2 and you get $50!!!

    LAWNS AND MOWER
     
  3. thelawnguy

    thelawnguy LawnSite Silver Member
    Posts: 2,412

    I'll sub out all my jobs to you...have at it!

    Seriously I think the big problem with being lowballed is that the guys being beaten out of the bids are taking the liberty of adding in services not in the bid request. Why include trimming and edging if the bid doesn't spell it out? Bid only on what is required, once you get the contract add in the extras later. Thats how its done around here anyways...
     
  4. fastrunner

    fastrunner LawnSite Member
    Posts: 96

    i Know where you are coming from. Dont get to upset..... This commercial property that i just bid,,, i thought it was worth a good $130.00 bucks,, so i said,, ah ill bid $110.00 then i will get it for sure.... NOPE. Some guy same in there and bid $75.00 It really sucks when you are tring to make a living in the business and some scrub comes in with a craftsman lawn mower and gets the job even though he does a crappy job.. And he will probably still make great profit, cause his only overhead will be the gas that he is burning!!:angry:
     
  5. Ground Master

    Ground Master LawnSite Senior Member
    Posts: 505

    Fastrunner, not trying to argue with you here, but thats how the cycle starts...you thought it was worth 130 and bid 110........maybe the guy that bid 75 also thought it was worth 130 and really wanted to get that job for some reason.

    I don't agree with him bidding 75 if it was worth 130 , but you bid less to get the job yourself and you were outbid.

    I remember years ago bidding on the local library lawn maintenance project. 15 different bids came in ranging from 750 a month to 3500 a month.......it was a joke......but, what do you do?
     
  6. beck

    beck LawnSite Senior Member
    Posts: 433

    I saw a bid sheet for a certain city to maintain all of their parks. I forget all of the specifics except some pricing.

    low end $45,000
    high end $450,000
    most fell into the 2XX,XXX range
     
  7. Propdoc

    Propdoc LawnSite Member
    Posts: 48

    Just wondering but I thought that commercial properties generally want some type of insurance, license, and a tax ID#. I really don't see how these guys can afford to make these suicidal bids and stay in business. Seems to me that they have to make at least some of the same commitments as everyone else. Or do they?
     
  8. kris

    kris LawnSite Bronze Member
    from nowhere
    Posts: 1,578

    The lawnguy has a point ...don't add anything extra ... What really pisses me off is when they dont give you any specs ... then your basicaly trusting that they will compare apples to apples.
    Other contracts I have come across ask too much... watering a property that isnt irrigated... how am i supposed to quote that??? Top dress or sod any bad areas...just really vague requests ... I added in my own stuff to there 40 page contract...water truck$85.00 / hr etc etc ...
    I am learning really fast that the only way to make any money ( for us ) is to go after the customers that will pay for quality and will pay the price we demand for it. We do have commercial accounts like that .... they dont shop around.
    There are some companys you will never out bid...they go for major volume...small margins ... Thats not for us ... Construction is our main stay.
     
  9. I MOW ALONE

    I MOW ALONE LawnSite Bronze Member
    Posts: 1,912

    i,d like to know how some of you guys find out what a contract goes for after you have bid on it and didnt get it just would like to know thanks in advance
     
  10. kris

    kris LawnSite Bronze Member
    from nowhere
    Posts: 1,578

    Unless it's a public tender then I dont find out... usually its a comment like "your way to high" ...cant hurt to ask them. Most times I dont care what it went for if I didnt get it... our price is our price .
     

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