1. Welcome to PlowSite. Notice a fresh look and new features? It’s now easier to share photos and videos, find popular topics fast, and enjoy expanded user profiles. If you have any questions, click HELP at the top or bottom of any page, or send an email to help@plowsite.com. We welcome your feedback.

    Dismiss Notice

Losing New Bids-Am I Quoting Lots Too High?

Discussion in 'Commercial Snow Removal' started by SnowRemoval1, Dec 5, 2014.

  1. SnowRemoval1

    SnowRemoval1 Junior Member
    from Chicago
    Messages: 16

    I've been losing a number of bids this season (way more than last year). In fact, I've been 1/15 in the past month and I'm really wondering If I'm charging to much or the low ballers are going crazy and bought a truck themselves after last years mega winter and are thinking they can hit it rich.

    Most of my lots look like this and normally have 80% of the 11 parking spaces filled. Residents have the option to move their cars if they desire.
    All of these I charge:
    *No salt, just plowing*
    2-5 Inches = $55.00
    5-8 Inches = $65.00
    8+" Inches = Reasonable Price Added

    (I also charge extra between $15-$20 for the front sidewalks)

    Am I charging too much for these (it went up $5.00 from last year) or am I just getting taken for a ride by the local low-ballers taking away the business?? Let me know! Also, any advice I should do in the future to make this not happen? I play up the business on how we are local but still losing the price shoppers.

    tinypic.jpg
     
  2. Camden

    Camden PlowSite Fanatic
    Messages: 6,598

    What's the reason for the tiered pricing structure? I grew substantially after I stopped bidding like that. I have one firm price for each time I perform service. Whether it's 2" or 10", they pay the same. My customers love it. Maybe it's something you can consider and see if you can sell using that angle.
     
  3. SnowRemoval1

    SnowRemoval1 Junior Member
    from Chicago
    Messages: 16

    I've been doing this for 5 years but so far no issues until now. Its just been easier that way but if its on the border line between 4.9" and 5.1", I give the customer the benefit. The only issue (come statement time) has been 1 time when someone argued inches for the location. They ended up paying in full though but lost the customer half way through the season. I guess when you get a Bill for January of $634.00 for 2 buildings (just like this size) some people freak out... What would you charge for a flat rate for both front and back? We have a few low ballers at $50.00 just for the back that I know of from last year. Think it would be less confusing and end in more clients?
     
  4. concreteguy

    concreteguy Senior Member
    Messages: 131

    Seems to be ok priced. Maybe your too low and they think you're low balling it. LOL
     
  5. hatchmastr

    hatchmastr Senior Member
    from 516
    Messages: 239

    How much cheaper can you go? I wouldn't even be able to justify droping the plow for 55.00 dollars . don't mean to be a dick but dam. that lot shouldn't take you more then 20 min granted but in ny I would get at least triple . what I've learned from experience is I hold my prices im at a comfortable place where if I add a couple stops or lose a couple it all works out . my GL insurance is probley triple yours to now that I think about it .
     
  6. JimMarshall

    JimMarshall Senior Member
    from NW PA
    Messages: 785

    How big is the lot
     
  7. procut

    procut Senior Member
    Messages: 902

    X2. I typically just bid one price. I actually got a big job a while back simply because I didn't do the tiered pricing structure and all other bidders did.

    As far as the job pictured, that would probably go for $35-$45 around here.
     
  8. JimMarshall

    JimMarshall Senior Member
    from NW PA
    Messages: 785

    Just those 9 parking spots?
     
  9. JimMarshall

    JimMarshall Senior Member
    from NW PA
    Messages: 785

    I don't know what your market is like there, here you'd be 0/15. That's about a $40-45 lot here, and I'm the HIGH bidder in town.
     
  10. dieselss

    dieselss PlowSite Fanatic
    Messages: 10,971

    So what plow and truck are you now using?
     
  11. Bchsnow

    Bchsnow Junior Member
    from Iowa
    Messages: 22

    I would charge around $350 flat rate per snow event for that lot.
     
  12. Bchsnow

    Bchsnow Junior Member
    from Iowa
    Messages: 22

    seriously, i would plow it once, send a shovel crew to shovel around the building and walks around cars, plow again then salt, then monitor any additional melt off for a week. because I'm responsable for the lives of the people that use that lot.
     
  13. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,868

    So does that mean you pay for their food, water and health care?
     
  14. procut

    procut Senior Member
    Messages: 902

    Are you for real?
     
  15. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,868

    Not sure you could even get that in Philly.
     
  16. Bchsnow

    Bchsnow Junior Member
    from Iowa
    Messages: 22

    all I'm saying is people will pay for a higher level of service and I'm here after they pay that lawsuit for 50k to that old lady that fell walking her dog, or whatever.
     
  17. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,868

    You don't provide dog walking included in that price?
     
  18. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,169

  19. Bchsnow

    Bchsnow Junior Member
    from Iowa
    Messages: 22

    no but i carry $2,000,000 in general liability And $1,000,000 in workman's comp
     
  20. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,868