# Need advice on bidding



## datank450 (Dec 25, 2013)

I am new to the business side of snow removal, but I've been plowing for a few years now. I started as a hourly sub my first two years, then the contractor gave me about 7 lots with sidewalks at a per push rate.
Now I've been trying to figure out the formula for quoting but I don't really know what a competitive rate would be for me to pull a profit with having a crew of guys working. I have the rates that they paid me to go off of, so I have an idea of what I should be charging, but during negotiations for this year I ran into a question that has me thinking and I don't know how to answer. 
I quoted about 10 sites for a real estate company and then they asked if the price is the same for 2" or 2'... So I thought back to the storms where we got about 6" of snow, and I realized that it takes a lot longer to clear 6", plus the problems I had with trying to push big piles of snow. Wet snow is a *****!!! Anyway, I twisted my plow pretty good. 
So I told them the price increases 50% of the original quote for every additional 3" of snow to be plowed with a 1" trigger. They countered and said they would like to do business with me and if I could cut the 50% back to 25%. 
I measured the lots and sidewalks, pricing as follows:
Plowing $150 per acre
Sidewalks $.025 per square foot 
For salt I doubled my price.
I have no idea if I'm low balling so please don't beat me up that bad. I added 15% onto What I was subbed out for in the previous year. Trying to be fair and this is my only prospect right now in witch I don't want to have no work for this snow season because of a small pricing discrepancy. 

Should I stick to my guns or back off a lil?
I am a concrete mason trying to keep a reliable crew, grow my business, and be competitive in the market. The one that tops them all is feed my family.
Any advice would be greatly appreciated so that I could build a structure for this end of my company.
Thanks in advance!


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## FredG (Oct 15, 2012)

You know best than any of us unless somebody responds from your area, 2' of snow could require something with a bucket. Most guys have inch prices 2' to 4' etc. If 50% more is what you guys do over there stick with it. They countered the 50% to 25%. This would make me think you could get the 50%.

You added 15% to what you were getting as a sub. You know your costs from when you were subbing. If you got to have a loader or similar in there 50% more don't seem bad to me. I would say stick with what you think. Some :terribletowel:could come in there for 50% less. You don't need to compete with the low ballers. Good Luck


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