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Did I Make A Mistake?

Discussion in 'Business Fundamentals' started by JustUsDe, Sep 6, 2003.

  1. JustUsDe

    JustUsDe Senior Member
    Messages: 181

    I just got a signed contract back from one of 2 new subdivisions I bid on. I mentioned before I was worried I might bid them too low and would rather be high and not get them. Well, I got one in less than a weeks time, now worried I messed up with the numbers. I will be primary driver, if for some reason I can't I have someone I will pay 15.00 an hour. Anyway this is the basics of how I bid it.

    I drove the subdivision as I would plow at 5mph it took me 25mins. I rounded it up to 30mins. x it by 4 passes to come up with 2hrs. I added 30mins for stacking. It takes me 10 to 15 mins to get there from my house so for round trip I added 30min. So now I have a total of 3hrs I x it by 100.00 an hour thats 300.00 and just for added comfort I x it by 20% to get a total of $360.00 for a 2 to 4 inch snowfall. With it being my option to make two pushes or wait to snow has stopped to push it. Rather I do one or two pushes it would be 360.00. For snow fall that reaches 4.01 to 8 it would be the 360.00 plus 400.00 with a guarantee of 2 full pushes. For snow fall from 8.01 to 12 it would be the 760.00 plus t&m. Snow reaching 12.01 would be considered blizzard conditions and would still be t&m over the 760.00 plus the cost of any rental equipment needed to safely perform the job with prior approval from the board of directors of the subdivision. I have plenty of other clauses and stuff in the contract just asking opinions on the prices to see if I goofed. Of coarse this all relys on me producing a certificate of insurance by oct.31.

    I hope they contracted with me due to my presentation and professionalism I showed them when I met with them. Not because I was low bid.

    Fingers crossed,

    PINEISLAND1 PlowSite.com Veteran
    Messages: 664

    If your estimates of time are correct, you should be fine. The numbers are pretty close to where we bid, and it sounds as if you are covered pretty well for the major snows.

    I usually find I overestimate the time it takes on site. Especially after you have done it a few times.

    After you get to know them a little better, you could always find out how you compare to those they had before, both in service and price. That will give you a better idea if they jumped on it to save money, or if they were just really impressed.
  3. Mick

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

    Ray, my opinion is that you put in a bid based on careful calculations. You got the bid. Don't second guess yourself now. You have this winter to keep track of times and can adjust your bid next year. I wouldn't worry about it. Even if you figure out that you did bid low, make good on your bid. Take this year as a learning experience and bid again next year using figures from this winter. It's a lot easier for them to stay with the same contractor from year to year than go with a new one even if your price is a little higher. Especially if they can remember the outstanding service they got the year before.

    Now the tough part is going to be getting that GL certificate. Do they want a certain amount?
  4. JustUsDe

    JustUsDe Senior Member
    Messages: 181

    They want 500,000. I currently having an agent working on a 1mill gl. I need that to bid a Lowe's store I want. He was having a hard time getting anyone to do it for a snow plowing only operation. I informed him Thursday that my license includes landscaping, property and building maintenance and since I cut my 2 neighbors lawns that technically I am not just a plowing business. He was happy with my answer and said he would pursue gl insurance based on that. So I hope to hear from him Monday. He said he had no problem getting my truck insured commercially with progressive. He just didn't have a quote for me yet.

  5. Mick

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

    Ray, I would say you'll get a good rate from Progressive. I have my auto ins through them and have had real good service with a windshield claim and an accident. I didn't know they wrote GL ins, though. Mine is through Middlesex Mutual Assurance with the same ins co here.

    Just curious, is that contract with Lowe's through Lowe's directly or is it though a management company? If it's through a management co., be very careful which company you're contracting with. There are some horror stories here of contractors not getting paid for services. Not my business, just a word to the wise.
  6. JustUsDe

    JustUsDe Senior Member
    Messages: 181

    Your right Progressive doesn't have gl. He said we will use progressive for the commercial insurance to cover the truck. The GL he is shopping around for me. He said Progressive doesn't do GL. I am dealing directly with Lowe's. I was a part of a group that cleared there snow last year. When the big storm hit they didn't have a Plowing contract and was stuck. I have a backhoe I use around the house and two of my friends rented 2 backhoes and we cleared them out for lots of $$$$$$$$. They weren't worried about us having insurance last year. They just wanted us to get rid of the 28'' of white stuff that blocked them in. This year they learned from there costly mistake and are getting a contract with a plowing service. Hopefully it will be me.

  7. cat320

    cat320 2000 Club Member
    Messages: 2,224

    Ray sound like your are right on top of everthing.I hope everthing works out well for you this year and you get that lowes contract too good size parking lot.What kind of backhoe do you have 580,420 ,410? Are you gonna plow with that too?
  8. phillyplowking1

    phillyplowking1 Senior Member
    Messages: 412

    A backhoe would be good for stacking in the subdivision.
  9. JustUsDe

    JustUsDe Senior Member
    Messages: 181


    It's a Case 480E. I know not the best for snow removal considering it is an open cab. I bought it about 2 years ago for $3,200.00 from a friend who needed money bad. Even before last winter making all that money with it I got my monies worth out of it. I bought it just to do work around my house. Then once friends and relatives found out I had it. I started doing small jobs for them and made a little cash. I almost froze to death last winter with it but it was worth it. It help pay for my new plow and a 1/4 of my new truck. I don't want to use it this winter but if I have to at least I have it. I wanted to buy either a closed cab Cat or JBL this year but I can't buy the truck and the hoe. If I have a good winter and still see a need to buy one. I will shop for a deal next year.

  10. myo

    myo Senior Member
    Messages: 193

    A stupid question but, GL means what? Brain Freeze right now.

    Is that mean General Liability, just a guess.

    Good luck with those accounts.
  11. wyldman

    wyldman Member
    Messages: 3,265

    Yes,GL means General Liabilty.