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Retracting a Bid

Discussion in 'Business Operations' started by cutman2000, Dec 3, 2012.

  1. cutman2000

    cutman2000 LawnSite Member
    Posts: 202

    I gave a current customer of mine a bid on a project, and afterward realized it was way too low. I have not started on this project yet, and really want to give another bid. The bid was giving about 3 months ago, and I was planning on doing the job in a couple of weeks. Should I bite this one and do it any way?:confused:
     
  2. rbljack

    rbljack LawnSite Senior Member
    from Texas
    Posts: 702

    Was their a cut off on the estimate? I put a 30 day guarantee on estimates. If you didnt include something like that, you might have to bite the bullet and do the work.

    I bid a job on Friday that was a mulch job. I called around, found one local store that had what I needed, the rest were out if stock. We live in a small town, so finding materials can be challenge. When i went to pick up the materials saturday...they made a mistake and DIDNT have what I needed in stock. Instead I had to drive 150 miles round trip to go to "Large home Improvement Store" to get all the materials I needed. Because I had already given the estimate, I ate it, and did the job anyways. I managed to make a whopping 6 dollars an hour for the 2.5 hour job if you dont include the drive time. Outstanding huh...LOL.
    :cry:
    But in the end, the customer was very happy with the work, and will refer me to others, so I guess thats a plus.

    So to answer your question, if there was no time cutoff on the estimate, and its a good customer you want to keep, you may want to do the work, as long as it wont cost you TOO much. Even if its not a regular customer...how might an increase estimate affect future jobs, and your buisness reputation. just a few things to consider, because from what ive seen (especially in a smaller town), word travels fast, and word of mouth is by far the best advertising that I know of.

    Good luck.
     
  3. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,715

    I agree, if there is no cutoff point (which you should have) then it was your mistake. You wouldn't charge a customer for not paying attention on their property and breaking your mower would you? Use this and learn from it, hopefully you get good marketing out of the customer and that is always worth something.
     
  4. cutman2000

    cutman2000 LawnSite Member
    Posts: 202

    You are wise. Thank you.
     
  5. shane-pa

    shane-pa LawnSite Senior Member
    Posts: 336

    is this a job you want to do? if it is, take the bite.

    I way under estimated a job this past summer. I ended up making $10/hr operating my small backhoe. The lady called me back to do other work for her and her neighbor referred me to another customer that needed digging done. I got bit but healed quickly.

    The thirty day estimate is good idea. I will have to implement that next year.
     
  6. rbljack

    rbljack LawnSite Senior Member
    from Texas
    Posts: 702

    Yeah...estimating is not my strongpoint either. After doing that mulch job, i went back and doublechecked all my measurements, and then also wrote down exactly what was actually used in the job, and how long it took.

    By doing this, it may help as a reference on a future estimate. I cant take credit for the 30 day guarantee idea either. I was searching through "estimate sheets" for examples and found it listed on a few of them. After thinking about it for a few minutes, I felt it was a good idea, so incorporoated it into mine. Glad I could help.
     
  7. alldayrj

    alldayrj LawnSite Gold Member
    Posts: 3,749

    I put 30 days on mine. Had a lady call 3 months after, looked up her estimate and saw i was low as hell. Told her it was 30 day price and it would be another 150 and she said fine do it
    Posted via Mobile Device
     

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