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How to close a deal where you’re $55,000 more annually than the next bidder

Discussion in 'Business Operations' started by BrendonTW, Dec 6, 2017.

  1. Mitty87

    Mitty87 LawnSite Bronze Member
    Messages: 1,146

    So you are actually cheaper per service than the middle bidder. I don't know about commercial but seems pretty obvious they will be able to tell they are getting more for the money and up to them if they would rather have weekly maintenance instead of what looks like bi weekly
     
  2. jc1

    jc1 LawnSite Silver Member
    Messages: 2,128

    Usually when your contact shows you the other guys quote, it is not that they are looking for a higher bid from you. We all have people we deal with in business but would you buy a mower for $20k because you like the guy?There's another guy you don't know selling one for $10k?
     
    RDALawns likes this.
  3. AI Inc

    AI Inc LawnSite Fanatic
    Messages: 27,007

    You need to submit 2 different bids. 1 that the workload is compatible with those you are bidding against and 1 that the workload is what they really want.
     
  4. Gus McGee

    Gus McGee LawnSite Member
    Messages: 24

    You're not going to get the contract, unless you drop your price in line with the company who shall not be named. You can possibly come in a few thousand more if you are really good at justifying why your prices are higher, but even then it is a gamble.

    A minority of commercial accounts are willing to pay more for better quality service, but even then they are not willing to pay 1.7 times more. You need to figure out a way to make your pricing more competitive.

    As someone mentioned above, you need to readjust the bid to figure out how to drop your price somewhere in line with the other bidders. Cut out or stretch out the frequency of certain services if need be.

    I've learned that some of the major players use these 2 tricks to bring their bid cost down to land work: they stretch out the mowing to as infrequently as they possibly can (mowing is billed monthly, and not per mowing), and many services you may have stuffed in your bid are not listed in theirs, they wait for the customer to specifically request add-on services and they slam them with a high price for the add-ons.
     
    Last edited: Dec 7, 2017
    RDALawns and hort101 like this.
  5. oqueoque

    oqueoque LawnSite Gold Member
    Male, from Jersey
    Messages: 3,380

    What I have seen a lot on bids is: Any additional services requested will be provided at a rate of $45 an hour.
     
    RDALawns likes this.
  6. UpNorthMowing

    UpNorthMowing LawnSite Silver Member
    from Ontario
    Messages: 2,125

    It must not be a high end commercial property like you are saying. What Property management companies do here are contact all reputable Businesses, have site visits, then have a scoring system based on 75 % past performance and 25% price. Some also have bonds of security and performance.

    Like others have said, i doubt they are going to be willing to increase there budget for 50k unless, they are truly tired of getting screwed over.
     
  7. whiffyspark

    whiffyspark LawnSite Fanatic
    Messages: 6,507

    They’ll be going with brickman. I wouldn’t sweat it sometimes your numbers just aren’t going to align with what they want.

    If you can try to sell yourself in person, give it a shot. But if you’re $55k over the next person I would throw your bid packet out before I review it
     
    Mark Oomkes likes this.
  8. Oxmow

    Oxmow LawnSite Senior Member
    Messages: 485

    This what I suggest too. My question is why are you bidding 307 items versus your competition? Make your proposal based on what THEY asked for not what YOU suggest. Then write up a secondary proposal and sell them on the added value of those items. Show them that you took the time to look over their property thoroughly. Have current properties for them to look at to compare.
     
  9. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 10,760

    Yes
    Tens of thousands
     
    BrendonTW likes this.
  10. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 10,760

    You can’t be that far off and not be offering something the others dont

    Key phrases is lowest RESPONSIBLE and responsive bidder.

    If I bid it and I don’t have a single mower or any previous customers
    I could be lower but they might not decide I’m responsible

    I could send them a lower number but mark up the RFP with all sorts of exceptions and exclusions
    In which case I’m not reponsive.

    However
    If I’m responsible and responsive and I’m lower and I don’t get the contract
    I’ve seen people sue over that AND win.

    So just let the numbers be the numbers and if you get it you get it and if you don’t
    Maybe you need to figure you’d numbers better, or not bid that work
     

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