Tough Call

[mcmav101]

Two apartment complexes were bid at 400 and 450 weekly. Customer showed us bids of another company that were 375 and 425. We were alot cheaper on spring and fall cleanup and hedge trimming. Now customer wants the whole lawn bagged which will take approximately an hour or two longer estimated. She wants a new bid. I know that the average would be to add on about another half more ie... 600 weekly but then we take the risk of losing this account. We are only in our second year and this account would really help us out. SHould I leave the price where its at and bite the 1-2 hours or should I raise it up. Just Curious As To How You Guys Feel About This One.

[Phil Nilsson]

If you are going to "throw" something "in" free ... get something in return. If the work is badly needed, ask her off the record if you do the bagging at no extra charge (or at modest charge such as cost) would she be willing to extend the contract to the second year. Snow removal contract available where you can "shift" the pain into a fixed contract for example? Check your labor inputs again, check frequency of needed services (like number of mows to finish season) make sure you need those extra dollars (for sure) before you throw the baby out with the bath water.

[mcmav101]

Thanks for quick reply Phil. This contract is for everthing. Fertilizing snowplowning hedges ect. ect. She is just holding up on the price for bagging lawn. She will sign a two year deal to one of the two companies.

[Phil Nilsson]

Okay ... then "throw in" the bagging ... chances are you'll only need to bag or see "heavy clippings" for spring and early summer mows and maybe that will nail down two seasons for you.

[Stephen M.]

I wouldn't want to throw cold water on this deal, but I have quite alot of experience in dealing with condo sized complexes. Bagging does add time and time is money. Be very careful when you give a "freebe" JUST TO GET A CONTRACT. I understand the concept of NEED very well. Last year was the first year in 15 that we were not doing some kind of condo complex and losing money because some manager Always wanting "freebes".

Proceed with caution. If you throw in the "freebe" as Phil suggests, know when to bail out or renegotiate the contract. If they write the contract, you will probably be SOL in renegotiating; but if you write the contract, give yourself some ability to do that. The concept of NEED should not be the most important consideration if you end up losing money because of the requirement to bag.

I hear alot of contractors and LCOs complain about all the money they lose because of the freebes, and I tell them that THEY control that, not the client. The best way to handle that is to get agreement at YOUR PRICE, and then YOU decide what freebe you give and when.

[Seascape]

Im kinda w/ phil on this one. Thing is though,,she likes your costs now(cause theyre looking at the annual #) and knows her request is going to hike the bottom line,,or she wouldnt ask you to rebid. But,,, like phil said,make sure you actually need to get more. Chances are if you tell her youll just do it you'll get the contract. But chances are,,she will accept a reasonable hike from the way it sounds. Also,,, im thinkin she wouldnt have bothered asking you if you wasnt a top runner on this bid,,,id say you already have it locked up.

Heres what id do,, id explain that an addition 2 man hrs will be consumed,,and to be a good sport i am absorbing 1 man hour and passing the additional hour to her,,,therefore meeting half way. Id plaster another 35-40 bucks on per cut. Done properly,, she should take you up on that.

[mcmav101]

Well thank you all for the advice and I will let you know how it turns out. We added 40 bucks for one hour extra and the lower management said it looked good and faxed it to the owner. Will let everyone know how it turns out.

[grassguy]

I would try to talk her out of bagging. Explain to her the benefits of returning the clippings to the soil. I would rather cut a yard 2 or 3 times than bag...