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How to properly Bid?

Discussion in 'Introduce Yourself to the Community' started by DaySpring Services, Feb 15, 2006.

  1. DaySpring Services

    DaySpring Services PlowSite.com Addict
    Messages: 1,065

    Im looking into getting a few lots to plow next year. How do you bid for a seasonal contract? By the square feet or other ways? I really have no clue how to come up with a bid for the season with lots.
  2. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 7,921

    SQ feet is one way. There are a few different ways to do it.
    Have you plowed lots like the one you are looking at?
    You have to look at the lot to get an idea how much to charge, is there a lot of back dragging, are there any barriers/ dividers in the lot.
    How far do you have to push the snow to stack it?

    My smallest lot is my highest priced lot, it has lot of dividers and they want all of the snow to be stacked in one place. It takes me longer to clear this lot than my biggest one that is twice the square feet. My biggest lot is wide open and i can windrow it to the sides, very easy and fast so I charge less.
    I charge by the push, with a storm Claus, for any thing over 10 inches. which I have only used once. Why? I have an 2inch trigger so theoretically there would never be More than a few inches to plow.
    Last edited: Feb 15, 2006
  3. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    For a seasonal bid I figure how long it will take to plow the site and how many times will I plow it in an average winter. The apply how much I want to make per hour. For example:

    Site will take an average of one hour.
    I would push this site ten times per year on average.

    Now this last item takes some expertise. Obviously, there is more to pushing a 16" snowfall than a 2" snowfall. You might push a 2" snowfall once and a 16" snowfall three times. So the 16" snowfall counts as three "pushes". Likewise, if you have your pricing structure set up like:

    3" to 6" - $30
    over 6" to 9" - $45
    over 9" to 12" - $60

    Then a snowfall in the first category would count as one push, a snowfall the second would be 1 1/2 and a snowfall in the third would count as two. Now, based on your historical data, you know how many of each category would will likely get a year. For instance:

    First category - 4
    Second category - 6
    Third category - 2

    So you would have 4*1; 6*1 1/2 and 2*2. Total 17. So 17*$125 per hour * one hour = $2125. You may want to adjust this up or down for various reasons such as desire to get account, difficulty, potential obstacles etc.

    You can work variables into this such as multiple pieces of equipment, shovelers, etc.