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Bidding existing customer seasonal now??

Discussion in 'Bidding & Estimating' started by jfgold, Jul 30, 2011.

  1. jfgold

    jfgold Junior Member
    Messages: 8

    Quick question, I have several customers that want me to submit seasonal contracts for review. I have three year plus data on all of these customers and over the last three years we have had a record snow, an above average year and a slower year. It really comes down to simple math in my eyes if I was the customer.... With that said what percentage should I shave off of the average of the last three years as a good seasonal estimate? I am thinking 75% of the three year average payable monthly for X months for a three year contract. I may make loader service extra but everything else would be included. With good historical data am I off with this theory?? Thanks for your help, Joe
     
  2. wizardsr

    wizardsr PlowSite.com Addict
    Messages: 1,551

    Why would you take only 75%??? A lot of times seasonals are padded a little in addition to the 3-5 year average numbers, knowing that customers typically are more demanding when they're seasonal vs. per push. Relocation, hauling, or loader work is almost always additional to a seasonal price. Some customers prefer a 2 payment term, most prefer a 5 payment term, and I even have a couple that pay 100% of it in November. The customer should dictate how many payments they desire, 5 is pretty common though.
     
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Take your highest and pad it another 25% for just in case.
     
  4. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    Are these customers you currently have and are at the end of your seasonal contract? or are they potential customers that want a bid? The reason I ask if they are current customers and you gave them great service, why discount anything?...... they know your service standards and you know the account..... just write up a fair contact based on your AVERAGES and you'll both be happy. And wizards advice above....
     
  5. jfgold

    jfgold Junior Member
    Messages: 8

    Details

    The customers are current customers that I have had on per push basis for years now. Yes they like us but there is NO WAY they are going to pay the highest of the three year average which was over double last year. The high year was two winters ago where we shattered all time records for snow. I need to sell them on the benefits of seasonal. The big one is a zero tolerance account so they could not get to much more demanding for service I just need to convince them that this is the way to go. Thanks for the replies so far!
     
  6. CGM Inc.

    CGM Inc. PlowSite Veteran
    from Ontario
    Messages: 3,589

    I say take the 3 year average you got and maybe take 10% off. Sounds like you had extremer weather in the years you have on record. A seasonal contract should be cheaper IMO vs a per push price since you still get paid without any or very little snow.

    Last winter we had 16 pushes....the year b4 we had 2....seasonal pricing limits your risk a lot!
     
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Don't try and sell them the price,sell them on how they can budget their money for the winter for plowing by having an equal amount every month.
     
  8. Solaris

    Solaris Junior Member
    Messages: 12

    if it were me i wouldn't discount much, they obviously are happy with your work, don't sell yourself short
     
  9. TheRealBuzz

    TheRealBuzz Member
    from ON, CAN
    Messages: 43

    The act of averaging is the savings associated with seasonal. No need to discount the average price.