Commercial Bid Question

[jgontarek]

Guys: I have really good marketing idea's and a good sense on how RFPs work as I come from a corporate background,however this is the first year I am doing this for my own business. As some of you may know from my other post, I am a new company and have an amazing opportunity to take a lot of market share in my area. right now i am trying to get more commercial accounts as it seems to be more steady with the down economy. I bid on a few of them already and was awarded 2, but they were for landscaping and did not include the cost of mulch and flowers, they were considered extra with the approval of the managers. I am currently working on my first bid where they are requiring the cost of mulch,flowers,etc all included in the bid. The company is HVM, (homestead village management) I'm not asking anyone for hard numbers, Im just looking for advise on how to bid on this and how to stay competitive. any advice? Thanks

[Steve]

Lawn care business tips

I have really good marketing idea's and a good sense on how RFPs work as I come from a corporate background,however this is the first year I am doing this for my own business. Can you give us some insight on this? I am currently working on my first bid where they are requiring the cost of mulch,flowers,etc all included in the bid. The company is HVM, (homestead village management) I'm not asking anyone for hard numbers, Im just looking for advise on how to bid on this and how to stay competitive. First off, can you see last year's bid for an example? Do you know all the services they want? Can you measure everything out to then calculate how much time each service will take? Do you have an overhead map image of the property?

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[jgontarek]

Originally Posted by Steve

Can you give us some insight on this?



First off, can you see last year's bid for an example?

unfortunetly, i dont have a copy of last years bid. I didnt do it last year and the company is very strict so it will be unlikely to get a copy.


Do you know all the services they want?

yes, I know all of the services they are looking for, it's your average mowing,mulching trim, hedge cutting etc.


Can you measure everything out to then calculate how much time each service will take?

yes, I am guessing each place will take about 60-90 minutes tops, with 1-3 guys. I know that on weeks will be longer than others depending on if extra work is needed. They want weekly cuts, but other services (weeding, hedges, etc.) bi-weeky.

Do you have an overhead map image of the property?

I dont have an overhead map, but each place has roughly 400sq ft of wavey style mulch beds, all with small bushes and various flowers.


thanks

Right now I am figuring $275.00 a week is a fair rate for everything they are asking for the bid is for 4 locations so I was thinking about lowering it to 250.00 per week per location, so i can get the work, but with gas prices on the rise, I may be setting myself up for failure.

The problem i am really having a hard time with is, eventhough i do a lot of commercial work I have never done one with buying so much up front materials, as it looks each hotel will need roughly 30ish yards of mulch, and roughly $1,500 in flowers per change, they want spring/fall flowers.

So I am trying to just see what everyone does when it comes to materials, right now I have been using a couple local places to buy all my mulch but does anyone have any suggestions on how to make my material cost lower to help win the bid?

see above

[Steve]

You have to make sure you are covering your expenses on the first bid plus making a profit. Don't even worry about the others until you nail this one down.

Right now I am figuring $275.00 a week is a fair rate for everything

How are you coming up with that figure?

[boog]

each hotel will need roughly 30ish yards of mulch, and roughly $1,500 in flowers per change, they want spring/fall flowers.


see above

For starters have you asked for a deposit to insure you will have the money for the materials ? I try to get the price for what they was charged before you came along so you know your not going to starve. i have under bid a couple jobs and it hurts all mine are locked by a contract so i dont have a choice but to be hungry next time i know to aim higher if they dont like it i can drop the price a bit

How did you get a bid for the motel ? i have around 15 motels all owned by the same family within 10 mile radius from me i have been bugging them trying to get the contracts

[jgontarek]

How did you get a bid for the motel ? i have around 15 motels all owned by the same family within 10 mile radius from me i have been bugging them trying to get the contracts

I do the snow plowing for them, and I had sent a little sales kit with my new flyer for 2011, along with a letter stating my interest in bidding on their work. I got a phone call about 2 weeks later asking me to bid on their work.

I also believe it's a timing thing, the company that did the work for them for years, moved so i just hit them at the right time and really hit it off with the regional manager who manages all of them.

So i think it was a combo of timing and stellar marketing materials. If you want me to mail you my sales kit P/M with your address

[Steve]

For starters have you asked for a deposit to insure you will have the money for the materials ?

What is your suggestion on how much of a deposit he should get to cover the materials?

[jgontarek]

yes I did ask for deposit upon winning the contract, I asked for 50% of the cost, or direct billing from the supplier b/c i dont upcharge for material.

[950thomas]

The best way to do it is have your mulch and flowers bid separate from contract that way most commercial pays in 30days and if u have accounts with your suppliers u can buy your material and pay your suppliers in 30 days because most property manners are not going to pay a deposit up front

[Steve]

direct billing from the supplier b/c i dont upcharge for material.

What is your view on why you go this route? What is the benefit of not upcharging on the materials?

Do you recommend the customer pay the supplier directly for the materials? If so why?

The best way to do it is have your mulch and flowers bid separate from contract

What is the benefit to doing it this way? How is that better than having everything on the same bid?