Need help bidding first job

Discussion in 'Bidding, Estimating and Pricing' started by Layten13, Dec 15, 2018.

  1. dieselss

    dieselss LawnSite Silver Member
    from NWI....
    Messages: 2,306

    Huh?
     
  2. Layten13

    Layten13 LawnSite Member
    Messages: 11

    Yes I know what I'm receiving as a sub but I don't know what they are bidding the property at. I have been working as a sub for this company going on four years. If I'm getting 400 for a warehouse I know they are getting way more than that. That's why I dont know how to bid . They give me set prices to do the work I don't actually know what they get from the company so I have nothing to go off on bidding
     
  3. dieselss

    dieselss LawnSite Silver Member
    from NWI....
    Messages: 2,306

    Ok makes more sense now.

    Still what's your costs?
    Been working for them for 4 years, you have been making profit? Or slowly dieing....
     
  4. Layten13

    Layten13 LawnSite Member
    Messages: 11

    No they actually pay us good. I have 3 guys we do about 5-6k a week for them but I have 730 dollars a month in mower payments . That's pretty much it I own all my trucks . It's just an uneasy feeling thinking they can tell me at any time they dont need me . Let alone they are getting 1700 to salt one parkinglot and I get 4 or 500 per truck for 5 hours . It's good money I'm just ready to get my own stuff . I called about 230 places and ended up with about 15 to 20 places to bid on my own for mowing and snow. They sent me that above list and I guess I didnt realize how many things you have to bid .
     
  5. Layten13

    Layten13 LawnSite Member
    Messages: 11

    And they are bringing like 70 hispanics from Guatemala Up here the summer and I have a feeling they are going to take over the mowing for cheaper cost so I'm a little on edge
     
  6. Matthews Lawn Care

    Matthews Lawn Care LawnSite Bronze Member
    Messages: 1,960

    You need to take some business mgt classes. This is why knowing your cost and what $ you need to be profitable. If they bring in cheaper workers from a bigger outfit and your charging more than what you really need to be, guess what? You start losing customers. If your charging what you need to be profitable, then most likely the job can’t be done for very much less.

    I’ve never lost a customer to someone cheaper. In reality $10-$20 cheaper for a company they don’t have a relationship with isn’t enough to switch. I do several large industrial facilities and several national chain accts like KFC, Subway, etc. They get bids all the time from guys. I have a great relationship with the managers and they tell me how much they are being bid for. It’s usually $10-$20 per service cheaper. Haven’t lost 1 and I’ve been servicing them for 5 years.

    Charge what you have to charge to be profitable. Add a little to that # based on your skill/knowledge compared to everyone else. If you can do more(pesticide license, etc.) you can charge more based on your knowledge.

    Also, you won’t win every bid or keep every customer. Finding what the “market allows” takes years of winning and losing bids to dial in what top $ is for your quality of service.
     
  7. Layten13

    Layten13 LawnSite Member
    Messages: 11

     
  8. rclawn

    rclawn LawnSite Senior Member
    Messages: 697

    9 man hours for 7 yards of mulch? Company subbing you work for 50% cut? I would check some of your numbers and reconsider your bid because it sounds like you are going to be really high, or undervalue price per man hour
     
  9. Layten13

    Layten13 LawnSite Member
    Messages: 11

     

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