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Bidding on a sub job

Discussion in 'Business Fundamentals' started by beherit316, Sep 7, 2003.

  1. beherit316

    beherit316 Banned
    Messages: 78

    When and if you are approached by SMG or any other type of sub orientated work for a bid, what do you guys usually bid? Reason I'm asking is to you bid per push? per hour? and per inches?

    I never got a sub job and never bid on one yet and am looking for advice in the correct way to do it.

    When I first got into the business all i had was a 10hp ariens snow and a 4x4 ranger.I advertised my company over the Internet yellow pages and received alot of calls.I wasn't sure on price's to bid so I consulted a friend of mine.Anyway he always said bid up to 4 inches then 100.00 an additional inch.I tried it and never got call backs, I thought that was way too much an additional inch for a small parking lot.

    I have a total of 18 accounts now and am looking to expand more.Out of those 18 I have 2 commercial.I am interested in obtaining some more commercial accounts on a major highway near me.
    Do you think it would be a good idea if I were to just go through the phone book and get the numbers for these places and call them and see if they are in need of plowing service?
    I don't want to sound like a stupid telemarketer.

    And with these commercial lots, what is the best way to price them?I am looking into smaller lots, ones that have 100 parking spaces or less.
    Any help would be greatly appreciated.
  2. EZSnow

    EZSnow Senior Member
    Messages: 205

    I'm no bigger than you are, but if it's a sub-contract, and all you have to do is run your truck... you can bid it pretty low. I got $50/hour in MN last season, but I was pretty much a crew foreman. I dont shovel when I'm subbing, but baby-sitting those guys is worth a good chunk of that 50. Anyway, on a sub job, you don't have to bill, pamper, take calls from, or worry about your customers. Just do a good job and everyone's happy.

    When I bid on a new job, I go to the business in my plow truck and case the lot. This isn't a problem in most lots. I write a bid sheet and take it and a card in to speak with the business owner/ manager. If you really want the lot, bid it low, but make sure you can make money. The "formula" for coming up with a bid has been posted based on a desired hourly rate. Basically, how long will it take you? How much do you want to make per hour? It should be simple math from there.

    Good Luck!

    PINEISLAND1 PlowSite.com Veteran
    Messages: 664

    If you are approached by another to sub for them, most likely the terms are already set by either that company or the site owners, and if you want to be involved you will simply bid it at their specs, not your own.

    If you are on your own to spec it out, then I don't think I would change my formulas just because I was technically a sub. Your costs do not change much based on whose company name is on the dotted line....