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2nd place bid

Discussion in 'Commercial Snow Removal' started by bigearl, Oct 17, 2007.

  1. bigearl

    bigearl Senior Member
    Messages: 393

    I have been plowing my church for a couple of years now at a reasonable rate. I found out Monday that I was $1100.00 higher than the guy who had it before I did. Last year I broke even maybe made a little $ So I marked it up 10% ( what the price of fuel went up ) I thought that it was a great price until this guy under bid me. Do you think this makes me look bad? I was up there ever morning and every night ( very Active Church ) making sure the lot was cleared. I guess only time will tell.
  2. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,194

    Does the new guy go to your church?
  3. bigearl

    bigearl Senior Member
    Messages: 393

    No, I heard that he is under bidding everyone I guess he bids them first then worries about service.
  4. ABES

    ABES PlowSite.com Addict
    from MN
    Messages: 1,322

    you could do it as charity then use it as a tax write off. thats what a lot of people seem to be doing...
  5. bigearl

    bigearl Senior Member
    Messages: 393

    If I had a million $ I would But I still have to pay the bills.
  6. Snowpower

    Snowpower Senior Member
    Messages: 636


    Did they even give you a chance to negotiate?

    Thats cold. What would Jesus do? (Prolly a lowballer. What with being able to plow an acre every five minutes....lol)
  7. cet

    cet PlowSite Fanatic
    Messages: 7,257

    We have a contract that is multi year. Each year we get a raise. The raise is determined by the rate of inflation. They understand that fuel is our biggest fluctuating expense so 20% of our raise is determined by fuel and the rest determined by the increase in everything else. This year our raise was 2.9%.

    Total inflation was 1.9%
    Fuel inflation was 7%
    80% of 1.9 plus 20% of 7=2.9%

    If you were basing your raise totally on fuel you might of been high but if this guy was slashing prices then even no raise might not have been good enough.

    People forget about the great service they get until they get poor service. They may feel that your price was high but may have been in line for great service. Only time will tell.
  8. gene gls

    gene gls PlowSite.com Veteran
    Messages: 481

    That raises a red flag at the IRS office.
  9. donations

    I learned that it is best to get paid and then write them a check
    to donate the value of your services.
    My Accountant appreciates the plan.

    Obviously we help some families and friends that just cant pay.
    Or we trade -- maybe they can do plumbing or painting..

    But, In all of my wisdom:
    a. you can only do so many freebies and keep food on the table
    but you may be able to plow instead of throwing cash in the offering basket

    b. If you are going to give the friend and family discount, show it on the bill.
    How many friends, family, churches were offended because they thought
    you did NOT give them a discounted fee ?? ( been there)
  10. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Remember you were 1st place after the winner! Don't even think about it you'll pick something new up and make more money in less time.
  11. cwags73

    cwags73 Junior Member
    Messages: 19

    When they call you because he sucks, raise your bid another hundred!
  12. Dhouse

    Dhouse Member
    Messages: 74

    There will always be a bid lower then yours. Stick to your prices and great customer service, thats what will always win in the end.
  13. CNY Plow

    CNY Plow Senior Member
    Messages: 145

    I did a church lot years ago. Gravel.
    I didn't like the job but I kind-a-inherited it.
    I did it for two years without any increases (everything was pretty stable back then).
    Then we had a 7% inflation hike and i quoted it higher the following year.
    The church informed me I had been out bid by $400. But, they would let me have the contract if I lowered my price.
    I told them these are rock-bottom prices already just because you are my church, and walked away from the contract.
    It turned out that they did not have any other bids and we had early snowfall.
    They had not hired a new plower and asked if i could do it at last years price until they could find someone.
    I told them don't worry "God put it there and he will remove it." but, i can't, my plow time is full and I can't tell these other people they have to wait while i do your lot.
  14. itsgottobegreen

    itsgottobegreen PlowSite.com Addict
    Messages: 1,351

    I stopped going to my last church because of snow. I offered to do it for free as long as they paid for my salt and sand. Plus they took care of the sidewalks. Well after telling me they couldn't let me do because of not doing the sidewalks (even though the pastor said he was willing to do so) they hired someone else and paid $12,000 that season. The church was already in a financial strain. OH well some people are thick headed.
  15. Metro Lawn

    Metro Lawn PlowSite.com Addict
    Messages: 1,306

    Donations of "labor or service" cannot be written off.
  16. 6feetdeep

    6feetdeep Senior Member
    Messages: 141

    We got a guy down here, too, that was going around and underbidding everyone. BUT, when the manager of the local fast food joint calls (One of his accounts), and he tells them he cant make it over there for a couple hours b/c he is TIRED.... Well, this year it seems some of his accounts have been signing with other companies and paying more for better service. payup

    SNOWLORD Senior Member
    from MN
    Messages: 610

    I personally do my church for free every year its pretty big but I guess I feel when you give you will get back much more so I just do it to help the cause. The only comment I have heard from the church is wondering why we pull in with all that iron but we pass by at the same time so we end up with one wheel loader with a 20ft box and 1 tractor with a 14ft box and 2 skids with 12ft angle plows and a salt truck floating aound in there someplacewe can finish in around 9 minutes if you can find the time I would try to do it for charity just my 2 cents