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Southern New England late bid

Discussion in 'Commercial Snow Removal' started by chaos270, Nov 9, 2004.

  1. chaos270

    chaos270 Junior Member
    from CT
    Messages: 22

    I have been asked to bid on a veterinarian's office. This will be my first commercial account if I land it There are two seperate buildings on same parking lot. Main lot is 120'x110' there are two service driveways 30'+ wide 150' long and 100'long, the 150' will have the tenents service trucks parked on the side away from the building. There is a total of 25500 sq ft of plowing and 260' of side walk half of which has to be kept clear. I am to plow every 2-4" and sand/salt as I deam appropriate. Snow stacking is not an issue here. I run a 8.5' Fisher EZV with a 1.4 yd sander. My sand/salt supplier is around the corner. I estimate it will take me 45 min to plow another 15 to sand putting down approx 1yd. Now the problem my bid is nearly twice what they paid last year. I came up with $2100 for plowing and $2500 for sanding. Pricing is for the average 40" of snow with a little figured in for some preventive sanding. The contract will have an acumulation clause kicking in @ 50" charging $150 an inch above. Is this high and how much should I be charging for the side walks, they will be providing Mg chloride I believe for side walks, I just have to shovel them. Thank you
     
  2. Playboy

    Playboy Senior Member
    Messages: 335

    40" of snow???? Are you charging for the season?
     
  3. chaos270

    chaos270 Junior Member
    from CT
    Messages: 22

    Yes this is a seasonal contract. Ignoring the dustings the average storm brings 4" this means two trips per storm. I discussed the contract options and the clients like the idea of being able to budget for winter work, plus it is great for me because it gives guaranteed winter cash flow. Most commercial accounts are setup this way anyway.
    The clients asked me for a bid because last years guy didn't salt/sand per his contract. He had a per push setup and included sidewalks and sanding as part of that. I know what he charged and for plowing I am within $10 if I did a per push contract. His contract states it includes sanding however something we all know starts a $100 a yd. I was hoping for some feed back as I want to get the contract to the customer so they can decide.
     
  4. Mick

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

    I'm not intending to bash you, but you asked for feed back. I think you're too high. Assuming this lot is wide open, you should be able to clear that area in about 30-35 minutes using an 8.5 Vplow. You should be able to sand in about 5-10 using a V-box and use no more than 1/2 yd of mix. You gave an average of 40 inches per year, so I'm going to guess you'll service this lot about 20 times per year (10 storms serviced; twice per storm) and I think that's high. If sand/salt mix costs $100/yd, I'd say you'll be better off going with straight salt.

    Now, your proposed bid is $4600. Subtract your cost for salt/sand mix, (which I don't think you'd use 10 yards, either) at $65/yd ($650). That leaves $3950. For the ten hours you spent on the lot, you'll make $395.50/hr.

    For reference, I buy sand/salt mix for $45/yd already mixed and they load it. Salt is $65/ton at the dock.
     
  5. chaos270

    chaos270 Junior Member
    from CT
    Messages: 22

    Mick, exactly what I was hoping for. Salt sand cost $28 per ton loaded. I charge $100 a yard. I really thought it would take substantially more than a 1/2 yd to service this account. I am figuring on 10 storms, 20 services like you mentioned. I still figure 15 hours on site and assuming your esimate of 10yds of material for the season. If correct that brings my bid down to $2800 with a direct material cost of $310. If I can make this work I am now within $400 of their guy last year. If anyone else could look at this and let me know I appreciate it, again thank you Mick.
     
  6. Young Pup

    Young Pup PlowSite Fanatic
    Messages: 5,487

    You say you will be $400 dollars within reach of last years price. Did you happen to see the contract from last year or did they give it to you verbally. Am just wondering because this has happened to me and I would not go any lower on the price. I got within reach of it and then they told me a different figure even lower. They gave it to me verbally. So I said the heck with it is not worth it.
     
  7. Mick

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

    I agree with Young Pup here. Ignore anything you "know" about last year's bid. Stand on your own costs and profit needs.
     
  8. Young Pup

    Young Pup PlowSite Fanatic
    Messages: 5,487

    Thanks Mick. Also I just thought of this sell your services and yourself to this company. Promote yourself to them. Obviously something happened last year for them to be wanting a bid. Just some more of my thoughts. Good luck.