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10 years at same rate what would you do?

Discussion in 'Bidding & Estimating' started by WRIGHTWAY, Nov 1, 2009.

  1. WRIGHTWAY

    WRIGHTWAY Senior Member
    Messages: 104

    Been plowing this for the last 4 years when I took this account I matched the price of there previous contractor who plowed it for I think 6 years that’s 10 years at the same rate :dizzy:

    This is +/-2325ft long on a 2in trigger up to three times a day but I try not to do it more than 2 to keep there cost down road is $70.00 per push
    I also have 5 driveway accounts that I plow every time I do the road at $15 per push cheap but im already there

    A little back ground
    Previous contractor is a friend of mine and of the condo president
    Condo president was my brother in-law


    As of 10/31/09 I was informed by the previous president that the condo association has elected new officials as of 10/30/09 and is going to take bids on the snow plowing
    He also stated that he does not know the going rate but I might want to drop my price some to keep the acc:laughing:
    My reply to that was they might not be happy with next guy if he’s cheaper than that :confused:

    My? To you guys is aren’t I already to low on this
    we only gave this price to help my brother in-law get his development off the ground
     

    Attached Files:

  2. JDiepstra

    JDiepstra PlowSite.com Addict
    Messages: 1,780

    So that's just under a half mile then? How many passes does it take to clear? How much time does it take? Plowing a street going forward all the time is very easy for you and your truck. I'd say I'd like to get $100 per hour plowing but since this is so easy you will probably have to go lower than that to be competetive.
     
  3. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    well, better raise him now then.
    that's really annoying
    10 years at the same rate and they want to go look for bids???
    grrrrrrrrrrrrrrrrrrrrrrrrrr

    i do a 1/3 of a mile road (4 passes, 1 cul-de-sac) and it takes me about 20 minutes.
    I charge similar to your price, but I"m going to raise them next year, it's out of the way.

    I think mine is easier, straight one way road. (up and back, up and back, done)

    oh, I do see you are in Michigan, Michigan rates are pretty low.
    Maybe charge more for the driveways.
     
  4. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,873

    I bid a .5mile road last year at $75 and the guy said if I can't go lower I won't get it. I said no thanks and he said the winning bid was $39. :dizzy:
     
  5. KingDuramax

    KingDuramax Senior Member
    Messages: 226

    if your happy with your price stick to it. If not raise it. If you get beat they told someone who they are friends with what you do it for and they under cut you to get it. So no matter what you bid they will get it anyhow.
     
  6. cameo89

    cameo89 Senior Member
    Messages: 669

    I think it's a fair price, keep ur charge the same, let them bid, and if they win, give the condo ur # so they can call you when the under bidder screws up the job! Good luck to you! Happy Plowing
     
  7. WRIGHTWAY

    WRIGHTWAY Senior Member
    Messages: 104

    At 2in it takes 5 passes with 6in I want to say it took 7 passes their no over charge for deep snow on the road or the driveways
     
  8. ERICS LAWN CARE

    ERICS LAWN CARE Member
    Messages: 65

    so how long does it take?
     
  9. ERICS LAWN CARE

    ERICS LAWN CARE Member
    Messages: 65

    i agree charge more for the driveways; let them try and get someone for 15 dollars a pop--oh wait, they probably will, maybe some guy with a beat up truck will do them for $9 dollars each; too bad you couldnt find him and sub them out!! pay him $12 lol
     
  10. WRIGHTWAY

    WRIGHTWAY Senior Member
    Messages: 104

    Id say it takes 45min on average to do the road

    Opps I messed up the length of the road I scaled it off the pic but I have been home sick with the H1N1:eek: so I have not been on my game :dizzy:

    Pulled out the survey I have with the lots road frontages and it adds up to 3051ft
     
  11. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,853

    The way things are in MI, same price as 10 years ago is about right.

    I'd be happy to have it.
     
  12. WIPensFan

    WIPensFan PlowSite Veteran
    Messages: 3,486

    Don't go any cheaper! Holy crap! I can't believe what your plowing that for. If someone else wants to do it for less, let them :dizzy:
     
  13. WRIGHTWAY

    WRIGHTWAY Senior Member
    Messages: 104

    Well I contacted the new president on 11/4/09

    Me = I heard from the previous president that you’re the man to talk to for the snowplowing.
    Condo pres = oh yeah I guess if were taking bids we might as well get one from you.
    Me = ok well my bid is 70.00 same as before.
    Condo pres = ok thanks for your bid im waiting on 4 other bid and we will know after are meeting on the 13th


    Got his phone call yesterday the 23

    Condo pres = hi Joe sorry it took a little longer its amazing how hard it is to get people to tell you how much money they want to make any way we would be more than happy to have you keep doing the plowing



    Kinda sounds like I was done in till they seen the other bids:laughing:

    Any way I want thank every one who for the input you gave:drinkup:
     
  14. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,382

    I was just having this same conversation with a friend who hasn't raised his prices in quite a few years and now he is debating due to the economy. Here's my thought's....If you decide to raise them after ten years they're going to think one of two things. First they're going to think you have been screwing them for the past 9 years and will go look for new bids, OR they're just going to be pissed you had to raise them 20,30,40% or however much you decide and they think your trying to screw them now. Either way your between a rock and hard place. I lost an account years and years ago because I left the price the same for a few years and needed to raise them by about 15% and needless to say they went looking elsewhere. People don't care if you tried to give them a break for the past few years (they have a short memory) they just care about now.
     
  15. Deco

    Deco Senior Member
    Messages: 453

    very grey area in these economic times .no leg to stand on type of deal . i'm in the same predicament at 2 sites , you can approach with the " cost of living or inflation , material upcharge " .
    take your pick and good luck !
     
  16. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    I raised 90% of my resi's this year..... not a single complaint and I've got them all!.... As a matter of fact, I had a few ask me "I was wondering when you were going to increase your rates".... Quality of service also goes along way when you have to raise rates.
     
  17. carlriv2

    carlriv2 Senior Member
    from Mass
    Messages: 126

    If you can do it up to 3 times a day I would make sure I do that on larger storms. Might as well get paid for the work and not worry so much about their cost.
     
  18. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,853

    I agree with this, in a normal economy.

    However, we have been in a recession\depression in this state since 2001. I was able to bump rates every other year approximately.

    This ain't happening anymore. I just got back from a customer that we started with last year, gave them a great deal--using pricing I would have 10 years ago (long story)--and he wants to know why the other 3 bids are lower than mine. One is 37% lower than mine.

    THIRTY SEVEN FREAKIN' PERCENT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    The a-hole that bid came from is at $55\hour. This same a-hole was told by his bookkeeper about 8 years ago that he has to charge a minimum of $80\hour for a truck. Now he's $25 less!!!!!!!!!!!!!!!!!!!

    Gotta give a big thanks to John Allin for showing others how you can totally f up this industry.

    Sorry, needed to vent.
     
  19. Deco

    Deco Senior Member
    Messages: 453

    dont want to lose customer either
     
  20. carlriv2

    carlriv2 Senior Member
    from Mass
    Messages: 126

    I agree you dont want ot loose the customer, but on larger storms when it makes sense it should be done.