The best bidding tip you will ever get!

Discussion in 'Lawn Mowing' started by J Hisch, Dec 21, 2005.

  1. J Hisch

    J Hisch LawnSite Senior Member
    Posts: 952

    This is something I have practiced for a while now and have had some great succues with it. I found myself always doing battle on the larger properties, you almost dread submitting that bid. The question rolls thourgh your mind, did I leave money on the table? Well, I think I found the best way to handle bidding larger maintenace properties. I give 3 prices. Yes that right three, I have the high price for this example let's say 1000.00 per mow, they can skip a week however we will charge for extra tall grass etc(no contract). then we offer a lower price let's say 875.00 per mow with a minimum charge of 32 mows per yr. with a 1 yr. contract. Then we offer a third price 800.00 for 36 mows a season with a 24 month contract. Accounts always (mostly)pick price, I gave them 3 options usually we secure business for 24 months but really dont give up much on the table. In my area the minimum number of mows is probably 26 mostly like 28. let say they choose the 1000 price thinking they will get off here's how the numbers work.

    Option 1-1000X26=26,000 but we will probably have to mow 28 times so 28,000
    Option 2-875.00x32=28,000 same money unless we only mow 26 times
    Option 3-750.00x36=27,000

    we maybe left a 1000 on the table, but we have a 2 year contract and we almost never need to mow 36 times....... hope this helps
     
  2. DeereHauler

    DeereHauler LawnSite Senior Member
    Posts: 604

    good idea, funny how accounts, or anyone with a calculator could figure that out, but they don't know how many weeks you might actually mow.

    with a dry year like i had, that would've put me in the good.

    thanks for sharing.
     
  3. DistLawns

    DistLawns LawnSite Member
    from Midwest
    Posts: 120

    That paragraph is to dificult to read.what?
     
  4. J Hisch

    J Hisch LawnSite Senior Member
    Posts: 952

    sure the typing isnt that great, and neither is the spelling, but the first guy got it. Why didnt you?
     
  5. dsmrolla06

    dsmrolla06 LawnSite Senior Member
    Posts: 305

    I understood the concept perfectly. The numbers could be adjusted, but it is a great idea. You may be losing out with the 2 year contract, but thats two years guaranteed... I think thats brilliant. Good thinkin J.
     
  6. dsmrolla06

    dsmrolla06 LawnSite Senior Member
    Posts: 305

    One thing i might add... Since i am rather unknown to the larger commercial accounts, you could implement a 30 day trial where they dont make a commitment to which i option they want until after that trial. For the first 30 days they pay the higher price, see what kind of work you do, and then pick which option or to go with you at all. If they choose one of the lower price options, you give them credit in the difference they overpaid on the first 30 days towards future service. How do you think this would work?
     
  7. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    I kinda do the same thing on my commercial or full service resi's ..... I have multiple price structures and give them the option of which service they desire

    From just basic to added "extras" which can be included in monthly billing such as general weeding, hedging, fert n such but other extras billed separate & billed when they happen can also have a price break .... if we give a spring & fall clean up in the long run the price will come down ....if palms are trimmed 3x as opposed to 1x ... the price comes down on the per event cost

    I try to stay away from price adjustments related to number of visits .....as we mow year round 42 times a year .... if we skip it ...it's from a request n the monthly fee stays the same

    The only bi-weekly I offer in commercial bids is around retention ponds .... I will offer bi-weekly service in summer n once month in winter ....but on all other common grounds it's 42 visits .... NO exceptions as this messes with scheduling ... but it does give a cost saving to the customer ...not exactly 1/2 of the original price but round a 40% savings on those areas

    Either way ..... I can understand those with limited mowing per year ....
     
  8. DeereHauler

    DeereHauler LawnSite Senior Member
    Posts: 604


    i meant accountants myself
     
  9. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Option 3 if you bid it at $800 for 36 mows = $28,800 I sure would like to find commercial accounts that can't add and figure $$$$
     
  10. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    Problem I see is that most commercial accts themselves (at least the biggers one that pay the kinda of money and more you used as a ref point) already have an outline in their RFQ of the number of cuts and maintenance structure and contract period that they give to the bidders so that all are bidding on equal grounds. It seems to me all you are trying to do is nothing more than "smoke and mirrors" and they will see right through it.
     

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