I just posted this in another thread. But I am so sure that so many folks make this mistake, in an attempt to help them see why I am also strating it as a thread. Enjoy and I hope it helps guys open their eyes and make more money! Okay, Schools in I'm going to leave my ruff image for a few minutes and try and help you new or younger guys understand why not to bid to low. Lets use my example of a $50K Job. Okay, this is a "low bid" contract award that includes just basic cutting, trimming, fert 2X a year and overseeding 1X per year only. Bidders A,B,C are knowleadgeable LCO's, Bidder D is a new or unknowledgable bidder. The bids are opened and Bidder D has bid $15K. Bidder A bids $50K on the low end, Bidder B bid $53K and Bidder C $55K on the high end. Bidder D wins award of bid. So you say hey, he did good. His first job and he's going make a decent salary, ESP since HIS cost of doing business is LESS, because he is a small Solo and A,B,C are bigger companies with several employees and lots of overhead. Right? I mean that's gotta be right cause I've heard guy after guy on LS say this. But are they REALLY correct? NO, and heres why. Bidder D will do the labor himself solo. It will take him one entire 10 hour day. because he is small, so he has 10 hours of labor on this job. Bidders A,B,C would have used 2 employees that would have had it done in 4 hours, which equals only 8 manhours, 2 less than D. Now, chances are very great, no very probable that he is paying way more for fert and seed than the others because he buys way less than they do. His fert cost is say $16 a bag and theirs $13.25 a bag. He is paying $60 a bag for seed and they are paying $40 a bag. They are probably getting equipment at a better deal because they are buying more of it. Same goes or parts, he pays $7 for an oil filter and they pay $4 because they buy in bulk. He pays $2 a quart for oil, they pay $1.50.....YEAH, I know what you are thinking..."but wait they are also going through MORE of this stuff you say".....are they? NO, not job for job. As a matter of fact on this bid because as said they are using 2 employees working only 4 hours total vs. his solo self working 10 hours they are actually putting LESS time on the equipment based on this same site and less time on this bid. Gas and insurance and licensing, etc will be about the same cost for them all, EXCEPT the larger ones have more jobs to spread that cost out over, so the cost on this one job would have actually percentage wise have been LESS for them than it is for Bidder D. So, in real numbers their overhead is NOT more on this job than D's is, it is LESS. So, what has he done wrong you ask? He WON the bid and is making money. YES, he did, BUT Remember this, Commercial Clients KNOW about what the job should cost, either because they have/had their own employees doing it, they have researched it or it has been under contract before. They know this price and EXPECT TO SPEND THAT AMOUNT IF NEED BE. So, in bidding and winning this contract but not really knowing the proper way to bid, he could have bid $49K and STILL have won. So by him not being knowledeable and "thinking" he had a lower cost to do business, he may have won, but in doing so he also LEFT $34K sitting on the table, while all the time the client laughed taking his $34K that he was prepared to spend back to the bank. Schools out.