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Minimum bid for lots

Discussion in 'Bidding & Estimating' started by terrapro, Aug 26, 2009.

  1. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,873

    What is the minimum you guys charge for small lots. I have a hard time bidding less on lots than I would make on driveways. $35 to plow and $20 to salt a lot seems really low to me even when they are so small.

    Whats your cheapest lot?
     
  2. badabing1512

    badabing1512 Senior Member
    Messages: 370

    who cares about a minimum in price, figure out your expenses and come up with a price as to how much you want to profit on that lot. Your not going to bid 5000 for a lot the size of a few driveways just cause its commercial and you think you should have a minimum.
     
  3. got-h2o

    got-h2o 2000 Club Member
    Messages: 2,439

    You have to charge a minimum of an hour no matter the size IMHO.
     
  4. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,954

    I'm wondering the same thing, just looked at one for a management company that is 8 parking spots, no driveway, just 8 spots on an alley. There's no way to justify charging a minimum of an hour for a lot like that, but drivetime to and from the closest jobs is probably going to have to be figured in.
     
  5. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    IMO you need to look at the small stuff in terms of VALUE to the customer.

    Doesn't matter if the plowing only takes 5-10 minutes, or your salt rig will only be there 1-2 minutes throwing 100-150lbs of bulk.

    What is the value, or what is that service worth to the customer.

    Someone still needs to get up at 1:00am and drive the insured truck to the site (while getting paid to do so) that has the product (that you pre-paid for), inspect the site and make the judgment call on what needs to be done. The list goes on and on......billing, postage for the invoicing, office staff......much to add to this list.

    I doesn't really matter if it's right next door to another site, don't short change yourself.

    $35 to plow and $20 to salt is too low.......you should be able to double those numbers for your minimum chage on the very small sites.
     
  6. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,873

    Whew, my hourly rate is about $130. That would not fly here in good ole' highest unemployment rate in the USA Michigan. I would love to charge a minimum like that and get it but that is not going to happen.
     
  7. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,873

     
  8. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    pm sent...........:waving:
     
  9. redman6565

    redman6565 PlowSite.com Addict
    Messages: 1,411

    establish your costs then decide your profit margin.
     
  10. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    I heard 15% unemployement today.

    But it depends on the business you are plowing for. Apartments are still getting the rent money. Liquor stores are still selling beer. Gas stations are still selling fuel. Small shops that sell hot tubes or craft stores might not be doing that great. So it depends.

    You can still do a 1/2 hour rate for a min if you wanted to. You have to determine your own min.
     
  11. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    For one lot, 20 to 30 minute minimum. (whatever your hourly is)

    but if there are a couple lots right next door, or you are already there, $25 is like free money.

    I do a BUNCH of small lots right downtown. And i charge very little for each lot. Because they take less than 5 minutes to do. But the drive time is like 1 minute.
    I can do a bunch of them and everyone else comes in bidding 1 hour minimum or whatever.

    $25/lot at 10 minutes per lot is 6 lots an hour is $150/hour.

    It can work.

    Don't send an invoice every time, track it and send one a month. $25/lot, once a week is $100 a month for about 40 minutes worth of work.
     
  12. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,873

    I only invoice per month and have a hard time doing that sometimes. $25 is waaaay cheap. The thread started because I was looking at a basically 4 push lot(parking on either side and a lane in the middle) with no backdragging and a quick stoop to shovel. Well it is on my normal route and would've added a whole 5min to my time for everything. I bid it at $40per push and $25 for salt, $65 for 5min seemed reasonable to me. Even at that I bet someone will do it cheaper.
     
  13. Dubliner

    Dubliner Senior Member
    Messages: 130

    I have a lot that takes around 20 minutes to do and I charge $60 per push, sanding is the same price so 2 inches plowed and sanded is $120, I have 4 lots like this and a bunch of drives that range from $30 to $75 per push, and if they want to be sanded then it doubles. :D