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Picked up 2, lost 4 more bids, waiting on 2 more....

Discussion in 'Commercial Snow Removal' started by LwnmwrMan22, Oct 24, 2007.

  1. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 27,964

    Well, just for the MN guys here more than anything....

    I only do my accounts on seasonal pricing, but I base my pricing on $100-150 / hour for a pickup with an 8.2 Boss V.

    So far this year I've retained everyone from last year, and picked up another credit union at $425 / month for 6 months for an average of 18 events / year, or 3 per month.

    Anyways, I've gotten somewhat concerned over the years, because it always seemed I could get whatever account I put a bid on, which most guys know, is not really a good thing, that you start to wonder if you're low price on the totem pole, or, as in my case, where it's all word of mouth advertising, is it your work that speaks more than the price??

    I picked up a YMCA at $825 / month for 12 months, lawn care included, but I've lost a motel and 2 banks, all $400 / month each.

    The 2 banks I was underbid, or at least they kept the previous people. I'm doing 1 branch, but was trying to get 2 others. The motel, the ownership group has "an associate" that wants to do the plowing, so for all I know, they just needed a price to know what to pay "the associate".

    I was then talking to 3 other companies this last weekend, and they're saying they're having a hard time even getting $75-80 / hour for a pickup with 8' plow.

    I guess maybe it was "who I knew" getting those bids, rather than my price. Makes a guy nervous though. I don't ever ask what they were paying before, or what the guy that got the contract is being paid, I just say "ok, thanks for the opportunity". However, you also like to have a feel for the market pretty closely anyways, to make sure you're not leaving alot of money on the table.

    The two that I'm waiting on, a building for the county, and a AT&T communications tower, I've bid both of those at $150 / hour, so we'll see what comes of it.....
     
  2. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609



    sounds like your doing good. congrats.
    i think you have a better idea of what the market is then your admitting.
    i would love to plow out towers. :nod: just towers. all kinds of them.
     
  3. Ozone

    Ozone Member
    Messages: 49

    LwnmwrMan22 -

    I admire you, because of the fact that you didn't ask how much the person was being paid for the job and who was doing it..etc.

    To me that makes a person sound a little bit desperate..and that they don't know how to run a business. We do the exact same thing in our business...we move on to the next job.
     
  4. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 27,964

    Figured I'd give an update, got the county building, now still waiting on the tower.

    Nice thing about the tower would be, is that it can be done anything within 48 hours of the end of a snowfall. There's a building there, but no one works out of it.
     
  5. Camden

    Camden PlowSite Fanatic
    Messages: 6,598

    48hrs? Are you kidding me? I only get FOUR hours to do one near me. It's my first year plowing that location so next year I'm going to try to negotiate that a little better.
     
  6. Silentroo

    Silentroo Senior Member
    Messages: 147

    You are High for the Market. I know the prices for the big three in town. We would Love to see 100 an hour.
     
  7. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 27,964

    I know I'm high for the market. You have to have people that are always trying to get the bar raised, or you're never going to raise the bar.

    Like you just said, the big 3. I don't compete with them, nor do I want to. I have a niche, along with niche areas where I can sell "MY" service, not just "A" service.
     
  8. CrownLawn

    CrownLawn Junior Member
    Messages: 10

    Clients will always pay more for great service. The thing is you MUST provide it. Anyone can lower there price but can anyone match or exceed your service! Thats what set use small guys apart. my 2 cents.