1. Welcome to PlowSite. Notice a fresh look and new features? It’s now easier to share photos and videos, find popular topics fast, and enjoy expanded user profiles. If you have any questions, click HELP at the top or bottom of any page, or send an email to help@plowsite.com. We welcome your feedback.

    Dismiss Notice

Strip Mall Scenario Question

Discussion in 'Commercial Snow Removal' started by North Country, Feb 26, 2004.

  1. North Country

    North Country Senior Member
    Messages: 141

    <br><b><center>Has anyone ever been in this situation?</center></b>

    We are currently bidding a strip mall who has done all their own snow work for the last 40 years.

    They are now filling up with high profile tenants and are bidding out the snow work. By next plowing season the lot will be cut differently with more dog-bones and detached box stores. The lot is also under sized so every parking spot counts!

    When the facilities people were asking around town the local hospital gave us a reference and we were contacted. We have estimated it <b>costs the plaza about $40,000.00 per year to plow, salt, remove and clean-up themselves.</b> This is not counting their insurance and employee benefits.

    <b>My question is: </b><i>Do you think they will be shell shocked when we tack on the increased difficulty of the lot, overhead, higher level of service and the profit margin to the actual cost? </i>Not to mention we have additional insurance.

    <b>I think we will fall between $65k and $75k for the bid after working out the details.</b>
  2. GeoffD

    GeoffD PlowSite.com Veteran
    Messages: 2,266

    You will never get the job at 75K. Even if they spend 40K before employee bennefits, they are still using the employee when its not snowing.

    Good Luck

  3. North Country -

    Don't try to figure out what it is currently costing them. It only adds confusion to the bid making process, and may cause you to under bid it. Stick with your numbers, what it costs you to service this property with your costs and profit. They may be shell shocked, but what are you going to do - lower your price so that you don't have any profit just to get the account? If they don't want to pay your price just move along to the next property.

  4. North Country

    North Country Senior Member
    Messages: 141

    <b>GeoffD</b> I don't agree with that. We are adding additional services and they are looking for a higher level of service than their employees offer. To Matt's point about costing - If it cost X amount of dollars to perform the service they require, you must add overhead cost and a profit margin to that, this isn't a driveway...If a job <b>costs you $50k+ for the season</b> you are not going to bid it at $55k.

    <b>Hello Matt -</b> I did the costing and we are going to come in higher than what they are doing it for, as I said to GeoffD, the property isn't going to be handled the same way, we are adding massive removal to each storm to ensure every parking spot is open.

    My question was really if anyone aver had to counter the suprised look that I think we are going to get? Some folks don't understand the cost in snow work, as we all know.

    Thank you in advance - michael
  5. ratlover

    ratlover PlowSite.com Addict
    from IL
    Messages: 1,325

    Tell em a doubled amount and after they get the deer in the headlights look say "oh I'm sorry, that was something else, your cost is this" That way you get the initail sticker shock outa the way :D

    See, I'm not completely useless. I can be used as a bad example :nod:
  6. jhook

    jhook Senior Member
    Messages: 375

    Ya, I never worry about trying to justify my price. I know what it costs to do a good job. Act professionally, give them some references to call, put in your price. End of story. Funny thing, I never went to buy a truck and got the guy to give it to me at his cost because I didn't want to pay full price.
  7. keitha

    keitha Senior Member
    Messages: 133

    Remember you are selling your services. Be ready to show them why you are the better deal. Do you have any pictures of satisfied customers that can show clearly your level of service?