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  • Bidding Question

    I have just started bidding, and had the opportunity of someone contacting me for a bid on their jobs they need done. I found it odd that they asked how much revenue I have. Do companies usually ask a question like that? I'm new to the bidding process, and was just wondering if this was a normal question. Thank you in advance to all that reply.

    Sondra

  • #2
    I have just started bidding, and had the opportunity of someone contacting me for a bid on their jobs they need done. I found it odd that they asked how much revenue I have. Do companies usually ask a question like that? I'm new to the bidding process, and was just wondering if this was a normal question. Thank you in advance to all that reply.
    I think it is odd. Unless they are just trying to be nosy. The only thing I can think of is maybe they might be concerned of the health of your business to see if you are going to be around for a while? But it sounds more nosy to me.

    There isn't anything they can really glean from knowing that. I mean you could have revenue of $100,000 and expenses of $200,000. So what does knowing the revenue do?

    I'd probably just tell them, those figures aren't released because it is a privately held company

    What was your feeling about the person and the business? Did you get the feeling like they were being nosy too? Maybe they would like to release to you their revenue?
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    • #3
      Thank you for your input. I talked to a colleage I used to work with, and he is familliar with the bidding process. He said that he would just send a letter about the company being small and how I'm trying to grow slowly. I don't want to bite off more than I can chew. The more input I get on this, the better I will be at it. Like you say, knowledge is the key!

      The person/company is a huge chain of restaurants, and I know their revenue is in the millions. I really want to get it, but if I don't, it's okay too. I'll pick up business somewhere else. Thank you again.

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      • #4
        Very interesting so they asked you this in some sort of letter in their bid package?

        It is fascinating how this all goes. Some people/companies will want you to jump through hoops, especially if they get the sense you are new. While others won't care as long as you can do the job at a reasonable price.
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        • #5
          IDK but maby it could be they might want you bonded with like 10% of the job ...... But idk i have never been ask that before either

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          • #6
            And if they were bonded, wouldn't that remove the issue then?

            How often do you find commercial clients want a surety bond?
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            • #7
              I talked to another person that also does a lot of bidding. He said that the company that sent out the bid wasn't the actual company, but someone hired to get their bids for them. So he also said that even if I don't get this bid, there may be other bids that I can bid on, because they hold onto your name and stuff. Pretty cool to know that. The only thing I may have a problem with is my company being really small right now. I have to do what I can handle myself. I don't have any employees yet, but I know where to find them. I have lots of people who want to work for me. The problem is getting the work for them to do, and stay busy. That's why i want to work on advertising so much. I always see people running over trash, tearing up the grass with their mowers because they don't know how to turn around on them, and standing around, not doing anything. Anyway, I'm rambling. I just wanted to let people know that if you're bidding on a place or places, then there's a chance that the company doing the bidding is doing it for another company, so keep in mind: if you don't get the first one, don't give up, you may have a second, third, fourth, chance.

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              • #8
                They were probly trying to get a feel for your size so they new if you could handle the work they have. The thing with chains is they are usually franshised. So they could have 45 around you but only one owned by the people you work for.

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                • #9
                  Would you happen to have the bid sheet available to post? Could you show it to us and take out the contact info? I'd like to see what they are doing.

                  Also, what is your view with trying to land commercial clients now vs. residential? From many discussions on here we have seen that most smaller lawn care business owners make better money off of residential clients and they tend to stay with the lawn care business owner, year after year.
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                  • #10
                    My contract is my bid sheet. I want them to see exactly what I'm bidding and not just a number. I dont think many people out side of the south could do much bidding right now. Any time is a good time though. This is probly a perfect time for cold calling to find when they are going to be taking bids. My focus is now on resi's though. Better money and loyalty plus if your good you get xmass bonus money which is nice

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                    • #11
                      Sorry Steve, truthfully, I would rather not post the bidding sheet. I don't want any legal entanglments with the company. You never know. Even if I covered up the contact info. I think they were just trying to get an idea of how big/small we are.

                      Well, the bid sheet was due today. I am wondering if I was the only one that they contacted, because when I hadn't turned it in by 5:00 PM, the guy called me and asked me if I was bidding.

                      I had asked him if he would still consider us since we were so small, and he said yes (not that I know if he was lying or not).

                      Having a contract as a bid may be a good idea. But how do you do that with everyone's prices being different? Do you go by measurement of the property for grass cutting, mulching, etc. That's how I do it. Everyone's prices aren't the same. Or do you just change a few things per each contract? I don't do contracts for residential because that shows me that they like what I do and want me to come back each week. I like to keep my customers satisfied.

                      In the past, I have dealt with commercial and know pretty much how to run the business around that. I've dealt with a lot of people (that kept telling me that I should start my own business), the only thing I'm not too sure of is pricing. So, I'm probably one of those lowballers!

                      Being a girl, doing the job makes it harder too because people look at me, and then they think I can't do it. I have to show them what I'm capable of. And they try to push the prices down. So what I've learned to do was tell people that my crew will be out to do the job, then I just go out and do it. I love doing landscaping and making a hobby a job/business is even better.

                      I appreciate all the input you have all given me. Thank you.

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                      • #12
                        Well, the bid sheet was due today. I am wondering if I was the only one that they contacted, because when I hadn't turned it in by 5:00 PM, the guy called me and asked me if I was bidding.

                        I had asked him if he would still consider us since we were so small, and he said yes (not that I know if he was lying or not).
                        Did you ultimately hand it in? Keep us posted on how it all goes.

                        Having a contract as a bid may be a good idea. But how do you do that with everyone's prices being different? Do you go by measurement of the property for grass cutting, mulching, etc. That's how I do it.
                        You need to in order to keep a level of consistency in you bidding. Otherwise you may find some jobs make you money and some jobs lose you money.
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                        • #13
                          Thats why I use my contract to bid. I have a proposal sheet that I got from another guy but they are vague. If I have my bid in a contract then they can compair apples to apples. They say well so and so is 300 a month less than you. Well lets see if we are offering the same service. Never ask if they will hire you if your small. Just let them think you got at least 2 guy's that help. This is why I wont go bid withmy trailer. I just take the truck as if I'm supervising. If you dont get the bid, ask them what the winning bid was. The watch the new contractor to see how long it takes them. Times those hours by the number of guy's. Then devide the bid number by th number of cuts a year. Then by the total man hours and that should give a base hr rate.

                          3000 a month. 3 guys 1 day. 3000x12 months is 36000. 36000 devided by 52 visits is 693 a week. 693 devided by24 man hours is 28.87 per man hour would be the winning bid

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                          • #14
                            That is very interesting! What is the benefit of doing this? So you can compare and contrast your prices with those of the winning bid?

                            Is it also important to do this so you can bid better next year on the job?

                            Or how does doing all this help you?
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                            • #15
                              Yes, I turned in the bid, but only the first part. The guy said that there were two parts to the bid. The first part was to see what we can offer (as far as being able to do the work), and the second part is the actual bidding. I haven't gotten an email from him yet, so i don't know if he looked over what I sent in or not.

                              If I get the jobs, then that would help me tremendously! I need work. That's why I wanted to work on advertising more this year. I just want to be careful that I don't bite off more than I can chew.

                              Everything is so expensive, especially insurance.

                              I don't have a problem hiring anyone, because there are lots of people on unemployment that want a job.

                              How do some of you all do your bidding? I know that if they want to know how much I'm going to charge for each place, I'm going to have to go out to each place and measure everything: grass areas, sidewalks, roadways/parking lots, bed areas, etc. to give the right price. Is there an easier way to do this?

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