which bid is lower?

Discussion in 'Lawn Mowing' started by NEPSJay, Apr 22, 2006.

  1. NEPSJay

    NEPSJay LawnSite Senior Member
    Posts: 492

    Senerio: 2 companies bid on a commercial maintaince job. Install 3 yards of mulch then, weekly, STRICKLY mow, trim, blow and go. Ferts are handled by 3rd party (national account) and the place is irrigated, so weather conditions shouldnt affect mowing. both companies based rates on 28 mowings. Company "a" bid $125.00/mow + time and materials basis for mulch install @$65.00/hr labor rate. Company "b" (who knew the first bid, see bobby's post on buisness ethics) bid $120.00/mow + time and materials for mulch w/ a labor rate of $60.00/hr. All other fees and charges equal, Which is the better deal and why?
     
  2. mcwlandscaping

    mcwlandscaping LawnSite Gold Member
    Posts: 3,164

    as long as both companies provide equal quality and customer service then senario B seems like the better deal.
     
  3. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    Atleast the 1st guy could make his own bid ....hopefully with a solid foundation based on his own cost

    The other guy .... who knows if the price is good fore him .... I really could care LESS what the other guy charges ..... I base it on my own numbers

    Hope Company B has something better than a push mower
     
  4. General Landscaping

    General Landscaping LawnSite Senior Member
    Posts: 801

    The better deal is to not get the job if price is the only factor to the customer. For "B" to know what "A's" bid is; it shows the customer is just trying to beat down the price. Imagine what it will be when company "H" bids on it:hammerhead:

    The price is the price, if you can't get it there, find somewhere you can.
     
  5. NEPSJay

    NEPSJay LawnSite Senior Member
    Posts: 492

    no....there's no "H". just two companies. company "a" is the better deal, for the customer. Company "b" will make MORE money.
     
  6. NEPSJay

    NEPSJay LawnSite Senior Member
    Posts: 492

    Can anyone tell me why?
     
  7. ALarsh

    ALarsh LawnSite Silver Member
    from Midwest
    Posts: 2,412

    B is doing everything under the table and no insurance. A has insurance and pays uncle sam.
     
  8. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,073

    With the information you provided, how can one tell? It could be different reasons. Company B may have lower overhead.
    Or Company B set them up on a set plan, 28 cuts divided over 9 months, so he is getting $373 per month no matter if it needs mowed or not. Company A set up his bid per cut, so if there is drought in August, he aint cutting, and not pulling in the $125 each week.

    It's all just a guess as to why.
     
  9. NEPSJay

    NEPSJay LawnSite Senior Member
    Posts: 492

    ur both wrong....its got nothing to do w/ under the table, mow schedule, no drought (remember its irrigated)etc.... "a" is $65.00/hr for 3 man crew, "b" is $60.00 for SOLO.
     
  10. JJLandscapes

    JJLandscapes LawnSite Senior Member
    Posts: 682

    thats just ******** so lets say u happened to be the lowest bidder and where chosen youwouldnt do the property because you where only chosen due to the fact your price is cheapest...

    customers who only care about price dont care about anything whicch means you will never see them and they will never open there mouth to complain aslong as you do your job.. These are my favorite customers the ones that dont need to meet up or be home when you are doing a cleanup.. and they keep resigning and ive never seen there face before
     

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