Winning Bid Price

Discussion in 'Landscape Architecture and Design' started by Mission Landscaping, Jul 20, 2010.

  1. Mission Landscaping

    Mission Landscaping LawnSite Member
    Posts: 5

    I'm wondering if you ever ask what the winning bid was? I have been working on getting a job for about a year, these homeowners are SLOW, and was told today we lost the bid. I have revised the bid (due to plan changes) numerous times and met with the homeowners multiple times. They said they really wanted to use us, we just weren't the cheapest. I'm very curious how much cheaper the winning bid was. We had very competitive pricing on this job. In case you are wondering, this was a new install.
     
  2. fastpine

    fastpine LawnSite Member
    Posts: 201

    Great question..I too am wondering the same thing..
     
  3. AGLA

    AGLA LawnSite Bronze Member
    Posts: 1,742

    Hopefully, you have a system worked out which you use in order to price out what it costs YOU to do a job and then add a reasonable profit to that. If you do, it really does not matter that someone else is able to price for less. It is not up to you to make a job affordable.

    You also have to take into account that there may be other reasons that someone is not hiring you and that it is simply an easy excuse to say that your price was too high. I don't mean that they think you are not good enough. It can be that they just don't have the money, or they got a good referal from a friend, or some other reason that gave someone else an advantage. Its a normal part of being in business. You just have to move on.

    If it is actually because you are priced too high, you have to look at your company objectively and ask yourself if you are trying to make too much profit, or if you are inefficient at getting some parts of the job done making it cost you more than someone else might be able to do it for, or maybe your overhead is higher than it could be, or you are paying more than others for materials. If there is something you can do to reduce how much it costs you to get the work done, you can charge less. If there isn't, you can't.

    Other reasons can be that others make a customer feel more confident in them, or they have a bigger crew or equipment that allows them to get things done faster, or they have a well established reputation, or maybe just a personality chemistry, ... it happens all of the time. You just have to let go and accept that you won't get every job.

    You have to remember that a landscape install is a one shot deal that is usually a pretty good sized investment. Whoever removes the most doubt is the ONE who will be hired even if it is only by a hair.

    Another thing is that anytime you have to go round and round re-doing prices it is a red flag that the people can not afford what they are trying to do or that they are using you as a price comparison to get someone else to reduce their price. The only way you'll get the job is if you do it for less than it is worth. When you go to that length to try to get the job, it tells the potential customer that you want the job more than they want to get it done and they own you. NEVER want the job more than the customer wants you to do the job!
     
  4. nepatsfan

    nepatsfan LawnSite Gold Member
    Posts: 3,142

    an easy way to get around all that is ask them what their budget is. Then you give them a plan to suit their budget.
     
  5. Mission Landscaping

    Mission Landscaping LawnSite Member
    Posts: 5

    AGLA, I agree with you. Always walk away when you can't profit or do a job to your company's standard. I was more curious what the winning bid was for my own knowledge. I know my pricing is competitive, I was more frustrated because I was the refered contractor and this would have been a fun job. I'll be keeping an eye on this job to see who got it and what they do with it.

    Neptsfan - I only ask budget when its a small remodel and you can usually tell within the first 5 minutes what they want to spend. You should always ask probing questions and get some ideas of what they are thinking. Stuff costs what it costs.

    So no one asks how close they were if they lose a job?
     
  6. Woodland

    Woodland LawnSite Member
    from Maine
    Posts: 207

    I think in this particular case, it would be perfectly acceptable to ask what the price was of the winning "bidder". It sounds like you have invested a lot of time and effort into working with these homeowners, so they should be very willing to be upfront with you. I am not trying to imply that the winning contractor didn't invest the same resources that you did. This would be a good opportunity to talk with the homeowners and make sure that you did, in fact, lose the job based on price alone and there wasn't some other aspect of you presentation that they balked at, and the make sure that everyone was bidding the same job. I have lost bid jobs to a lower price only to find out that the other company included a fraction of what I proposed to do. If the homeowners don't want to discuss anything with you, you haven't lost anything by asking, and you just move on.
     
  7. AGLA

    AGLA LawnSite Bronze Member
    Posts: 1,742

    You could make a follow up form letter that you send to all the bids that you miss to see if you get responses and find any possible patterns to why you are missing them.

    Things are tough out there and it is much easier to get several landscapers to respond to potential jobs. I look at a lot of landscape related messageboards. Some are geared to contractors and others are geared to homeowners. It used to be very common to have huge threads between homeowners complaining that landscape designers and contractors would either not respond at all, not come out to look at their jobs, or not send them a proposal. I have not seen one of those threads start for a very long time now. Most people that worked in the landscape business a couple of years ago are still trying to make it AND a whole lot of laid off people think that they can be landscapers as well. At the same time, there is a hell of a lot less work out there and virtually no waiting to get contractors to respond. Customers have no sense of urgency because of it.

    We are getting picked out of the crowd when we get hired and simply left in the crowd when we are not. It is a lot less of a rejection of what you are all about and a lot more about being lost in the crowd when you are not selected. They will only hire one contractor.
     
  8. Turf Logic

    Turf Logic LawnSite Member
    Posts: 243

    AGLA pretty much nailed it on the head.
     
  9. procut

    procut LawnSite Bronze Member
    Posts: 1,853

    Since it sounds like you have a pretty good working realtinship with them., I would have said something like, "Were we real far apart?" or "Was I totally out of the ball park?" and just see how they responded.
     
  10. teejet

    teejet LawnSite Member
    from Indiana
    Posts: 233

    This is one reason I prefer lawn applications, bid one time in 10 minutes, and do the lawn for 20 yrs. and maybe never have to talk to the customer again.
    Man you can spend a lot:hammerhead: of time making landscape bids, and explaining things to people:sleeping: you do landscape projects for.
     

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