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to cheap?

Discussion in 'Commercial Snow Removal' started by windrowsnow, Sep 4, 2008.

  1. windrowsnow

    windrowsnow Senior Member
    from nw ohio
    Messages: 168

    i recently quoted a job that consisted of four 8 acre parking lots. each lot has different requirements and more islands then the next. i did my drive through and estimated gave a price. well i get a phone call two weeks later saying your prices are competive pleaase give us a list of what equipment you own, i call them back and then im told im significantly cheaper. i then go through and measure all pavement areas and come out to the exact of what i quoted for is it that my overhead is less than the competetion? and i charge less per hour? ever happened to any of you?
     
  2. tls22

    tls22 PlowSite Veteran
    Messages: 4,263

    Well i guess you got the lot...congrats!:drinkup:
     
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Or a nightmare!:eek:
     
  4. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    someone has to be the cheapest

    there is no way that a lot can be eyeballed and have everyone come up with prices that are close, just look at when someone asks for help on here one guy says 3 hrs one says 1.5
     
  5. windrowsnow

    windrowsnow Senior Member
    from nw ohio
    Messages: 168

    the part that kills me is i eyeballed it and then priced it. after i was told i was cheap she wants a list of my equipment to make sure i can handle it so i measure everything and figure the 1 acre an hour and still come out with where i was when i eyeballed it so my overhead has to be lower she also said that two winters ago they had three trucks out there for 15 hours. it had to of been that valentines storm two years ago. eight acres of lot should not take 45 hours to plow
     
  6. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    ease your mind it will be fine
     
  7. windrowsnow

    windrowsnow Senior Member
    from nw ohio
    Messages: 168

    lol ease my mind is exactly what ive got to do i got my wife second guessing me and my employees say hell yea big lots we can fly just never had anyone tell me i was to cheap def. shocked me
     
  8. Mick

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

    If you knew what you were doing when you estimated and are confident with your figures, don't worry about it. Just send the equipment list they asked for - that's common. What the last guys did is irrelevant.

    On the other hand, if you're getting in over your head, now is the time to back out.
     
  9. windrowsnow

    windrowsnow Senior Member
    from nw ohio
    Messages: 168

    gotta get big sometime if i never bid on large lots and i dont land them why would i have the need to buy boxes, loaders, etc. etc. gotta have the lots to have the equip.
     
  10. Peterbilt

    Peterbilt Senior Member
    from IA.
    Messages: 745

    I bid a lot last week that the previous contractor had bid @ $800.00 I went in and figured it @ 2 trucks @ 1.5 hrs each to plow, @ my rates, then added the extra $100 for the PITA factor (I know this account will be) and I came in at around half of his bid.

    I have seen the guy plow it, Hes got 2 trucks with wings running and he is SOOOOOOOOOOOOOO Slow!! I just don't know how some places can afford to pay that kind of mney for plowing, It makes sense now how so many places went broke paying for snow removal last year.

    J.
     
  11. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    Had that happen last year, went out and looked at the place, figured it a little under an hour, bid it at $175 (2-4")
    They said, you've got it now, the last guy was charging $385!!!!!!!!!!!!!!!!!!!!!!

    I did it a couple times, took an hour. i'd say my estimate was right on.

    It happens.
     
  12. windrowsnow

    windrowsnow Senior Member
    from nw ohio
    Messages: 168

    i bid a chain of stores last season current contractor was using a jeep and ranger took him 12 hours to plow i bid them each one avg. 55 dollars some were less some were more but the lots i figured 45 minutes took me 15 in my dump. the district managers were shocked we plowed all 12 locations in 3 hours with two trucks my figureing is if you pay your guys a good hourly rate to get out of bed at crazy hours to work in cold temps. they will hustle. the more lots we can get done the money we all make
     
    Last edited: Sep 4, 2008
  13. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    ''gotta get big sometime'' WRONG there is nothing wrong with being smaller company

    frankly i see a lot of guys make more money with a smaller company that is well managed and details are paid attention to

    there is nothing wrong with geting bigger just make sure it is worth it financial wise, marriage wise, and family wise

    but good luck with your new accounts it will be fine
     
  14. windrowsnow

    windrowsnow Senior Member
    from nw ohio
    Messages: 168

    my wife is on the ground crew for a local university she is on call 24/7 in the winter just as myself so we rarely see eachother she knows this is our lively hood and i come from a plowing family my pops started it and me and my bro took it over
     
  15. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609


    the last guy charged more to cover his alimony and child support payments.
    You will be in the same boat come next season if you bid this wrong./

    (just kiddin):)

    i guess you know there is room to charge a little more next year now:D
     
  16. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    you got your foot in the door now just keep them happy and you can raise a little next year, you may have some lifers here
     
  17. windrowsnow

    windrowsnow Senior Member
    from nw ohio
    Messages: 168

    thats what i was thinking when i talked to the mgr. she told me im afraid you wont make any money please look it over which i did. then she said i really wanna get you in here for our landscaping next season. i bid the landscape maintence this past season and was to much money so my thinking is hey ive never lost customers had one complaint last season ill do them the same as all my other customers and build that relationship where they will be loyal and want me to service them for all there needs. btw i do appreciate the feedback
     
  18. grandview

    grandview PlowSite Fanatic
    Messages: 14,609


    if that's the case ,sit with her face to face with the contract and redo it until you both are ok with it.
     
  19. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    like GV said use the fact that you are cheaper this winter to sign them up for next winter and get a contract for the year
     
  20. windrowsnow

    windrowsnow Senior Member
    from nw ohio
    Messages: 168

    thats a good idea but i do know it goes to bid every year and its always to the cheapest i also gathered that they went with the cheapest last year and it was horrible she had to call them to come out they open at 9 and didnt start plowing until 7 or 8 and they used fertilizer spreaders to salt the lot i can wrap all their services into one with no problem just have to make a lil investment for this winter lol always adding to the fleet