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After bid, manager tells me what they are paying now.

Discussion in 'Commercial Snow Removal' started by Smitty58, Aug 21, 2004.

  1. Smitty58

    Smitty58 Senior Member
    Messages: 223

    I bid a small auto parts store. I figured it would take 1 guy 45 minutes so I bid $90 plus $20 for walks and $10 per 25 lbs of salt. As soon as I give to the manager he tells me, you are definately the lowest ,the guy we have now gets $300. How in the world could that be right? I figure I'll be around 150 with salt and walks so I'm still half of what they are paying now. Has anyone else had this happen?
  2. Mick

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

    The only thing I'm wondering about is; Do you carry General Liability insurance or are you cutting costs in that area? Otherwise, don't worry about it. You got what you wanted. Why should you care what the other guy got? That's why he doesn't have it anymore.
  3. BreyerConstruct

    BreyerConstruct Senior Member
    Messages: 132

    You're salt's a little cheap, but otherwise sounds fine. Don't worry about it.
    Although, you may want to find out who the other plower was & follow them around. LOL

  4. karl klein

    karl klein Senior Member
    Messages: 557

    are you thinking per push and maybe the owner paid by the storm before

    so the other contracter was planning on going back or clearing the roads before the snow stopped
  5. rainair

    rainair Senior Member
    Messages: 153

    your low on the salt price [thats in my area of Ohio price] we go with $25.95 per 50lb or .60c per lb
  6. thundercat99

    thundercat99 Senior Member
    Messages: 157

    your not low there just higher happened to me 3 times this year already. as long as your not lowballing dont worry some guys take advantage of there customers a little
  7. Smitty58

    Smitty58 Senior Member
    Messages: 223

    Thanks, I'm not trying to lowball anyone. I have liab. ins and turn in all income ,completely legit. It just bugged me a little that I was so much under the guy doing it now. I thought I might be missing something.
  8. 66Construction

    66Construction Senior Member
    Messages: 315

    Stuff happens...that's when you loose the most money when you see the other guys bid you beat out...dont feel bad I laugh at the state contracts.... all the time in the paper some one will be a quarter million lower then the other guy on a construction job...that'll make ya sick and keep you up nights. If you're making money run to the bank with it and dont look back.
  9. irocz600hp

    irocz600hp Member
    Messages: 54

    smitty what parts store was it i have some partes store in my area where they pay big and others that pay nothing
  10. HLS Wholesale

    HLS Wholesale Senior Member
    Messages: 111

    I think a lot of customers just don't really know what they are talking about. I've dealt with too many of them and realize how often they are wrong about what WE do...how can we really rely on them when it comes to giving information on what OTHERS do?

    In your case, there are a hundred different variables that might explain the difference. The customer may not understand that...

    Guaranteed to be first job plowed?
    Price included salt?
    Price included return visits to clean up?
    Price for one big storm and that price sticks out in the customers mind?
    Price was for the month?
    Etc, etc, etc.

    Bottom line is, the market decides the price in the long run. If you gouge your customers, you'll be out of business. If you don't charge enough, you'll be out of business. But supply and demand will say that prices will all be in the same ballpark. Some may charge more for salt, while others make their money in plowing, etc...but everybody gets theirs somehow.