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Do you discount when bidding

Discussion in 'Bidding & Estimating' started by Theshoemaker, Aug 28, 2010.

  1. Theshoemaker

    Theshoemaker Senior Member
    Messages: 206

    Does anybody discount their hourly rate when bidding on large commercial 15+ acre properties?? I know, hourly rates are formulated based upon overhead, profit margin, etc. But would you use your average rates (price per hour on smaller acerage lots) or discount it due to the size. Maybe shoot to profit 5-10 dollars less per acre because you get the quantity??
  2. Matson Snow

    Matson Snow PlowSite.com Addict
    Messages: 1,985

    Prices in most markets are low enough with out throwing out discounts...When dealing with large commercial accounts for the most part they are not gonna be swayed by a small discount...Price does play a factor in gaining these accounts....Larger accounts are looking for a contractor who can provide the service at a good price....When you get into the accounts of 15+ acres you gotta be able to service these accounts in a timely manner and cost effective to the company you are servicing.....Most site managers on a site that size are worried first and foremost if you can handle that site more than a $5 dollar an hour discount......
  3. Theshoemaker

    Theshoemaker Senior Member
    Messages: 206

    Well when you are talking about say 30 acres with a even a 7$ discount per acre, thats 210$ dollar difference per push and if it's in a 25 event area, that could be a difference of 5,000$ or more.
    So you suggest to just bid it at same price per acre as a 1-2 acre job??

  4. badabing1512

    badabing1512 Senior Member
    Messages: 370

    You could throw in a discount, sell them on quality of service and charge what you need, as said earlier large accounts want a reliable contractor that can handle the responsibility of their property, not the cheapest price
  5. Weeded!

    Weeded! Member
    Messages: 75

    I give a discount on the de-icer, as you can spread a lot more material in less time than driving from small lot to small lot. Of course more de-icer presents issues that cost money as well, so you can only discounts so much.

    Continuous plowing is expensive in wear on the truck, so we can't really discount on that. The blade wear alone on continuous plowing is pretty significant.
  6. kramer56

    kramer56 Senior Member
    Messages: 595

    What would be a good fair price for an acre of plowing?
  7. merrimacmill

    merrimacmill PlowSite.com Addict
    from MA
    Messages: 1,822

    Well, how much do you need to make an hour multiplied by how long it takes you to plow an acre and you have your answer. Then add in how much salt you need for an acre and how much time it takes you to spread salt across that acre and your have that answer too.