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pricing a lot, new to business/forum

Discussion in 'Bidding & Estimating' started by oakridgedriver, Dec 12, 2012.

  1. oakridgedriver

    oakridgedriver Junior Member
    from d
    Messages: 14

    I have posted this in "new to industry forum" as well, not sure which designation fits.

    I have a potential snow/salt contract.
    It's 52,000 sq feet, with 11,000 sq feet additional of sidewalk. The lot is "u" shaped, with a larger then half area at bottom of the u, and one small island and 2 10 car vehicle parking indents. My thoughts on the plowing were about 2 hours or so. The majority of the sidewalk is one strip, so my thoughts were to use my 30" 10 hp walk behind blower on it, one pass down, one pass to return and it's done.

    I priced it to be $8,000. seasonal, for up to 18 attendances ( equal to $445 each), to include salting if required, but not on sidewalks (streetside sidewalk), and an extra $125. to salt the sidewalk at the same attendance. Trigger for plowing at 2" for each accumulation, regardless of duration (within reason) of event. Additional price of $185. for salting over seasonal limit (have done it once, used 400 lbs, and get salt for $100/ton), plowing over seasonal limit; $300.

    I am not sure he is going to go for seasonal, was complaining he had his other lot done for $2000/ down, and 5 monthly payments of $400., to equal $4000. So, I took the liberty of visiting and measuring the other site, only 16,000. sq feet, straight runs, no sidewalk, plenty of room for snow. Per sq foot, I am less then half of what he was paying the other service.

    I have the landscape maintenance contract here and incorporated a yearly seasonal cost, however he wanted it broke down to winter and growing season pricing. I am in the Toronto area, wondering if my prices are consistent with other contractors?

    Thanks for any input.
     
  2. Wilnip

    Wilnip Senior Member
    Messages: 583

    No need to post the same question in multiple forums.
    As a customer, I would not sign a seasonal contract that has a limit of how many times my lot gets serviced. There is no incentive. I would just go per push.
    The rest seems on track, but market prices vary greatly so can comment on that.
     
  3. oakridgedriver

    oakridgedriver Junior Member
    from d
    Messages: 14

    I provided for 18 attendances as that was what he was comparing to from his other lot. I also gave him the option to pay $2000. up front to secure service, with an additional $400. per attendance charge, which works in his benefit until it gets to 15.

    Being that i have the maintenance contract i was hoping to keep it a yearly deal so there would be nothing overlooked.
     
  4. Nutz4Plowing

    Nutz4Plowing Member
    Messages: 30

    Capping a seasonal by droping bid 10-20% and dropping your estimated # of services in a season by 10-20% puts the client in a position to gamble on lower price and bite on a chance to save a little on seasonals based on the last two seasons. I was getting resistance to full seasonals and dropped a little on price and capped it and clients seemed to really feel more comfortable with that type of structure. I won't do it with all of them but if it helps close the deal on a couplee nice jobs I'm game.