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Why do ppl bid like this?

Discussion in 'Bidding & Estimating' started by flyguyirvin65, Aug 5, 2015.

  1. flyguyirvin65

    flyguyirvin65 Member
    Messages: 47

    Why are guys bidding this way and putting push push pricing?
    The way I see it it one or the other.

    Initial accumulation up to 4 inches: $ 300
    Over 4 inches up to 7 inches: $ 335
    Over 7.1 inches up to 10 inches: $ 375
    Over 10.1 inches up to 12 inches: $ 400
    Over 12.1 inches: An additional $15 per inch
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

  3. KYsnow

    KYsnow Member
    Messages: 74

    Stupidity most likely!

    If it snows 4 inches it's $300

    If it snows 10 inches its just $375? So it snows 2 1/2 times more snow than the initial 4 inches and they charge $75 dollars more?

    They should charge by the hour or the season and stop making it so complicated.

    I can see them getting in an argument with a client when the customer says " hey that was only 9.99 inches not 10.1 inches.
  4. Patrick3494

    Patrick3494 Junior Member
    from Chicago
    Messages: 5

    They will never bill out 10 inches.... they will bill out under 4 inches 3-4 times for a bill of $900
  5. derekslawncare

    derekslawncare PlowSite.com Addict
    Messages: 1,003

    I've been plowing since 2006. I have been biding and charging on a graduated scale like that since day one and have NEVER had a complaint once or someone question the depth for which they were billed. I have customers now that I've had since I started, so my guess is they are happy or they wouldn't keep resigning year after year.
  6. derekslawncare

    derekslawncare PlowSite.com Addict
    Messages: 1,003

    By the way, I ask the same question every time I get on here and read about "seasonal" quotes. Do what works for you.

    Edit: Might be worth mentioning that 80% of our storms fall into the 2-5 range, so it is pretty simple for the most part. The one or two whoppers (around here, that means anything above about 8 or 9 inches)that we may see every season, they are just glad to have it cleared so they can open for business and therefore don't care what the bill is (within reason).
    Last edited: Aug 11, 2015
  7. KYsnow

    KYsnow Member
    Messages: 74

    They will never bill out 10 inches.... they will bill out under 4 inches 3-4 times for a bill of $900

    Then why even have that pricing structure? Sounds like a con game to me!

    Which brings us back to the OP original question…"why do people bid like this" I say because it's a cute underhanded con that may fool a customer once.
    Last edited: Aug 11, 2015
  8. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,954

    So out of curiosity, when it snows 10" from 5pm-1am, on an office complex you gonna push that 4 times and bill 4 times?
  9. WIPensFan

    WIPensFan PlowSite Veteran
    Messages: 3,468

    An additional $15.00 per inch after 12.1"...There's a money maker!:laughing:
  10. derekslawncare

    derekslawncare PlowSite.com Addict
    Messages: 1,003

    I bill out for what is ON THE GROUND AT THE LOCATION I AM PLOWING AT THE TIME I START PLOWING. I have 10 accounts, all with 2" triggers. If you are first in my route and there is 4" on the ground at that location when I start to plow, then you are billed at the 2-5 rate for that visit. If it is still snowing and by the time I get to my last account, there is 8" on the ground there, then they pay the 7-10 rate. Now since they got serviced later, possibly at the end of the storm, that may be all they pay where as the first account now has 4 more inches and will be plowed and pay again. Like I said, 9 yrs of doing it that way, and never a complaint, so it works for me. I might add also that my rate increase from 2-5 to 5-7 to 7-10 goes up about 50% per tier. Example 2-5 is 200.00 then 5-7 would be 3-350 and 7-10 would be 500 or maybe 600 depending on difficulty of account (wide open or cluster). So no piddly 50 dollar jump between tiers.
  11. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,954

    Besides not going up nearly enough per increment what exactly is your beef with this system? Your question is very vague.
  12. John_DeereGreen

    John_DeereGreen PlowSite.com Addict
    Messages: 1,704

    What a nightmare. I can't imagine keeping track of that.

    Longae, you're a large contractor from what I've seen, far larger than we are. Do you do anything tiered?

    With 5 trucks, 4 skids and 3 loaders out on each storm in Athens, and 2 trucks and 2 skids out in Wooster I can't even begin to imagine the clusterfuck tiered billing would turn into for us. Much less anyone bigger than that. It'd be a full time job just measuring snow depths on properties.
  13. derekslawncare

    derekslawncare PlowSite.com Addict
    Messages: 1,003

    For a larger company with multiple vehicles out, I can see how it would become a problem. For me, one guy/one truck, it isn't hard at all. I'm already getting out when I arrive to clear the sidewalk before I start plowing. While I'm out, I make a mental note how deep my footprints are. When I get back in the truck, I write it on my clip board that I have all my site info on. Already writing weather conditions, pavement and air temps and all that down. How hard is it to write 4" out to the side?
  14. KYsnow

    KYsnow Member
    Messages: 74

    Are you asking me that question?

    No I'm going to bill them for the number of hours My trucks were on the lot clearing the snow. Very simple, no measuring snow depth, no multiple billings, something easy that everyone understands.
  15. BossPlow2010

    BossPlow2010 PlowSite.com Addict
    Messages: 1,027

    All bids fall into how many hours you're on the lot, how it's structured in the bid shouldn't matter. You're still billing for your time, expenses and material.
  16. LapeerLandscape

    LapeerLandscape PlowSite.com Addict
    Messages: 1,444

    We give the customer the choice, seasonal rate or per push progressive rate (2-4 4-6 and so on). An hourly rate gives absolutely no benefit to the guy with the bigger plow and more efficient plowing technique who can plow a lot in half the time of a small straight blade.
  17. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,954

    We do quite a bit of incremental pricing. In my opinion it's nice to have on a property that may be closed for 12 hours at a time (office, etc) we service over 100 properties most are 1 acre +, drivers are to measure depth in 2 places and record it on their logsheet...I honestly can't remember ever (only 17 years in business) having an argument with a customer over depth. If its a 24hr facility, or multi shifts, its either seasonal or we don't bother with tiering the pricing because its getting pushed all the time anyway. Of course no site is ever getting to the 2nd tier during business hours but its nice to have during "off" hours.
  18. KYsnow

    KYsnow Member
    Messages: 74

    That's why different equipment has different rates. Using your logic get a John Deere Mower with a 2 foot blade and take 72 hours to clear the lot. The bigger the equipment the higher the hourly rate.

    Our customers want us to stay in business. They don't want to screw us any more than that want to be screwed by us.

    I've never had a billing problem or been questioned with hourly pricing in 20 years.
  19. LapeerLandscape

    LapeerLandscape PlowSite.com Addict
    Messages: 1,444

    You have different rates for different equipment we have different rates for different amounts of snow. The only thing that stays the same in both is the customers parking lot. Say I bid a lot for $85. that I think will take me an hour to clear, you clear the same lot in an hour and bill out $85. (and this dollar amount is just for example). The difference is the more efficient I get the more money I make, the more efficient you get the less you make. We are also looking at two very different areas and amounts of snow annually.

  20. AccuCon

    AccuCon Senior Member
    from CT
    Messages: 432

    I offer a rate structure and basically it is based on how many visits I know it will take for a storm of say 8" Its basically double the initial number minus a percentage (since sometimes the storm falls at the right hours and I can clean up a 8" in one shot. That percentage is a trade secret :jester:)...In reality we are all really making the money on salting since that is a per application.

    Hey as long as you make it easy for you to understand, the client gets it, and you are making money, who cares.