Announcement

Collapse
No announcement yet.

Reasons why bids get rejected

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Reasons why bids get rejected

    Reasons why bids get rejected

    Here are (some) of the reasons mowing bids get rejected ...

    1. Unrealistic view of the scope of the work ... you guessed at the time required.

    2. Your costs really are what you say they are (but) compared to the competition your costs are (too high) to be competitive.

    3. Workers don't perform efficiently and you bid the jobs based on that inefficiency, end up forecasting excessive hours, inflated price.

    4. Your view of market conditions are unrealistic, you never checked what the competition charges.

    5. You never kept records or measurement data for similar jobs and are guessing as to work task times, you always play it safe on bids, too many hours are "packed into" the price.

    6. Your market is saturated with competition to the point where the close ratios are extremely low.

    7. You never viewed your prices as to keeping them as low as possible and "affordable" to the customer base ... based on the theory that you would monitor the "best production method" to keep labor times down, prices low as well ... instead you price based on your cost, which may be unrealistic based on "real" but "slow" methods. Customers can't "afford" your production methods.

  • #2
    [QUOTE=Phil Nilsson]Reasons why bids get rejected

    4. Your view of market conditions are unrealistic, you never checked what the competition charges.


    I hear guys talking about this alot. I understand through trial and error you can determine what the market will bare, but how do you find out what the competition is actually charging? Plus, even if you know what they are charging it doesn't mean that you can afford to do it for that price in your business.

    Scott

    Comment


    • #3
      Whenever I bid a job and lost the bid ... I'd ask what the "winning numbers" were ... but this has limited value since the same company bidding today at 100% of their price range might start bidding at a much lower rate tomorrow if they all a sudden run out of work ...

      What should you bid? ... efficient costs plus what you and ONLY YOU will be happy with as a profit ...

      If you are motivated by let's say earning $100,000 a year ... how many labor hours must you sell and what amount must be tacked onto that cost per hour figure ... and will that "number" sell out in the market place?

      Comment


      • #4
        Inform the customers. Once, they experience the crap, they will pay the extra. Nothing you can do about it now but go after them next year when the work they paid for needs to be redone. As Bobby Knight said "If you know you're going to get raped you might as well lay back and enjoy it!" So drive by today and ask the lowballers if it was worth it.

        Comment


        • #5
          These problems I feel happen more in maintenance than in landscape install. Start bidding on install gigs that require you to supply $200,000 plus in plant stock and the competition thins out fast ... or to "pour in" 5,000 labor hours before you see a nickle ...

          Comment


          • #6
            I know this is going to be hard to do...

            You must forget about the Lowballers that only stay in business 1 year or so... All they will do is upset you... unless you want to work for their wages????

            Until it requires Money, Licensing, Insurance, Education, Training & Work Experience and it is enforced by the law... Little 9th grade johnny is gonna be following you in his dads truck & ain't nothing you can do about it? You must prove to the client that you are worthy of your pay!

            Most customers know what they are getting & if they want cheap, they get cheap. I would never have a desire to work for them?

            Look at Dell computers do you think they worry about anybody else's? Not!

            Do you think Dillard's (Gayfers) worries about Wallmart. Do you think Steak Out worries about Krystal (White Castle)?

            People get what they pay for, you must sell them on what makes You & Your Company (Same Thing) Different.

            Are you in the Yellow Pages & Your so called competition isn't? If they ain't in the yellow pages they ain't your competition. You are Permanent & Established they are there for Beer Money & you are their to make a living.

            Your Image should speak for it self, does theirs? You show your potential clients that you are Licensed, Insured & Pay Workers Comp. If you drop a tree on their car, Cut their Power Line & your Backhoe falls in the Pool you will still be there on the Job, what would the other guys do? They would Haul Arse ASAP!

            Find Unique selling points that separates you from them? Before & After Pics, A Killer Presentation, Astronomical Product Knowledge & Bla Bla Bla... When you walk off they should be saying I want him to do the work no matter how much he charges! Get the Picture?

            I have a Billion plus back yard mechanics around my shop & about every other home in my town there are back yard mechanics some even say they will work for $10 an hour & My Posted Shop Rate is $45 an hour. I wish they would all Breed each other & have $5 an hour back yard mechanics.

            Those back yard mechanics help me get my $45 an hour labor rate.

            Is this Off Topic... Nope!
            I was some kind of hungry today, my wife is out of town & I'm actually having to work...

            So I had to get something to eat, I had to walk past a Burger King to go to Steakout... I got the Prime Rib Sandwich, Chips, Sweet Tea & a Loaded Baked Tater, it cost $12.48 & if it was $20 I wouldn't have said a word...

            Why didn't I stop at Burger King, because I know the Crap they got & I wanted something Better... For $12.50 I could have got a Meal & a date with the manager but her Taters are too big & she was under 6 Foot Tall.

            Again you get what you pay for & I will never have a desire to be the Cheapest or Most Competitive. I'm a unique individual & you must pay to have me play on your playground because I'm worth every penny of it & More!

            Advertise More, Bid More & Make More... $$$$$

            If people want cheap crap, let the others sell it to them!
            GrassMaster, LSF Administrator!
            LawnPro - Lawn Care Business Software:
            www.lawnbook.com --- www.lawnservicing.com

            Comment


            • #7
              Originally posted by GrassMaster
              Why didn't I stop at Burger King, because I know the Crap they got & I wanted something Better... For $12.50 I could have got a Meal & a date with the manager but her Taters are too big & she was under 6 Foot Tall.
              LOL thats really hilariaous!!!

              p.s. did you get my email about the avator I wanted to add on?

              Comment


              • #8
                Right on Grass Master!!

                Comment


                • #9
                  Say it again ..

                  These problems I feel happen more in maintenance than in landscape install. Start bidding on install gigs that require you to supply $200,000 plus in plant stock and the competition thins out fast ... or to "pour in" 5,000 labor hours before you see a nickle ...

                  Comment


                  • #10
                    MMMmmm!

                    Taters and sweet tea! I love the South!

                    Comment


                    • #11
                      Or ... start bidding OVERSIZED gigs and leave 99% of the comp behind you ...

                      In other words ... get away from small time outfits ...

                      Do like SodBuster does ... compete at a higher level for the bigger and better gigs ...

                      Comment

                      Working...
                      X