# Bidding: Fixed Rate VS Per Visit?



## Baur Lawns (Sep 26, 2019)

In your experience, is it best to bid smaller contracts with a fixed price or per push/visit?

These are lots that have 20 to 60 parking spot with some sidewalks. Our winters are fairly mild. Last year we mainly used a snowblower/shovel & salted. We used our plows 1 time. 

Thank you!


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## Luther (Oct 31, 2007)

Baur Lawns said:


> In your experience, is it best to bid smaller contracts with a fixed price or per push/visit?


That would depend on how the majority of your existing workload is already structured.


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## Baur Lawns (Sep 26, 2019)

Thank you for your reply. In previous years we charged the customer per push, per bag of salt, etc. However, this new PM company is inquiring about a fixed rate. I am unsure if I want to go that route. Just looking for some feedback on how others would go about this.


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## BUFF (Dec 24, 2009)

Baur Lawns said:


> Thank you for your reply. In previous years we charged the customer per push, per bag of salt, etc. However, this new PM company is inquiring about a fixed rate. I am unsure if I want to go that route. Just looking for some feedback on how others would go about this.


Sounds like the PM is looking for a seasonal contract so they can budget the monthly/season expense.


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## Baur Lawns (Sep 26, 2019)

I agree. Does anyone have any experience or guidance on how to bid a season contract? I want to be fair & cover my basis/ make money but also don't want to be so high that they feel ripped off? Not sure how to give them a happy median. Any insight?


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## sota (Jan 31, 2011)

You could try having a frank talk with the PM, and outline how while fixed costs are great for budgeting, and you can understand that aspect and desire on his end, the probability that one of you is going to get or feel "screwed" is pretty high. You could try and agree to a hybrid model (fixed rate up to a certain snow fall amount per storm, then additional costs if we get a harsh winter.) In the end though, if the ideas the PM is proposing don't fit into your model, such that you feel taken, then walk away.


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## BUFF (Dec 24, 2009)

Baur Lawns said:


> I agree. Does anyone have any experience or guidance on how to bid a season contract? I want to be fair & cover my basis/ make money but also don't want to be so high that they feel ripped off? Not sure how to give them a happy median. Any insight?


Being ootwest our market is mulch different and my cost would be waaaaaay less than what work goes for in NJ.
All I can offer is look at average snowfall going back 10yrs to come up with how many plowable and salt events to expect by using that data. From there you know your cost and you should be able to come up with a seasonal cost. Most guys have 2 payment schedules, one in November and the next after the new year. This allows you to get salt in one or two buys and gives you some cash flow the season start up.


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## 1olddogtwo (Aug 6, 2007)

Grandview.


He'll set you straight.


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## fireside (Mar 1, 2008)

My guess is you are already plowing the location? If you are all the information is at your finger tips. Figure out season snow fall average than how many services by how many inches of snow per event. You should have that information in past Billings! Do some quick math your done. One word of caution caps and limits of service are very important not to lose money


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## FredG (Oct 15, 2012)

Just do the 10 year average like suggested above and do the math. If your in a low snowfall area as you say the PM will probably stay with per trip.

Make sure you know what your doing, seasonal clients can be more demanding then per trip. This is where the caps and limits come into play. Good Luck


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## Baur Lawns (Sep 26, 2019)

Thank you all so much. I will take all of this into consideration. I appreciate the feedback.


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## sota (Jan 31, 2011)

And that, ladies and gentlemen, is how you do Q&A around here, with effective results.


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## Precision Mowing (Dec 6, 2018)

I live in Kentucky and you never know what the winter is going to be like. I so have customers on seasonal contracts and what I do is I figure average 3 to 4 snow falls and on average if we have a snow we push once of twice depending on the business and amount of snow. I take that 3 to 4 pushes plus what the salt totals and add that to my mowing and trimming. I also put in there that after that 3 or 4 snows if we have a bad winter then each push after that is bill additionally. I have never had a customer question it.


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## sota (Jan 31, 2011)

@Precision Mowing So you basically credit the customer for unused snow funds towards their lawn care? If so and that works for you and your clients, that seems like a good way for everyone to be happy.

I also never understood how people (clients specifically) don't know how to budget; I mean if I were paying someone, If they estimated 6 events, I'd budget for 8-10, so I personally had no financial surprises. I mean you can only plan for so much obviously, and if it's a bad year, hey it's a bad; even us snow guys hate bad years, as that can turn into a lot of hard work and broken equipment.


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## Precision Mowing (Dec 6, 2018)

Well I never have to credit because if nothing else we are going to salt at least 3 to 6 times per year. If he wants a number for the year then its give and take on both sides so you may come out getting paid to not do much
If you want to credit them then that's fine but I dont think they are going to count the snows cause they just want to know a set price and know it's going to get done. You have to come up with a price that you can operate on and not screw the customer if it's a very mild winter. If you could predict the weather 100% then I dont think you would be in this business. Good luck. Henry


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## RevelationL&S (Feb 19, 2018)

Why not take the avg per year. Add a couple to that for safety's sake. Subtract a small percentage for up front payment and do good work?


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## RevelationL&S (Feb 19, 2018)

Precision Mowing said:


> I live in Kentucky and you never know what the winter is going to be like. I so have customers on seasonal contracts and what I do is I figure average 3 to 4 snow falls and on average if we have a snow we push once of twice depending on the business and amount of snow. I take that 3 to 4 pushes plus what the salt totals and add that to my mowing and trimming. I also put in there that after that 3 or 4 snows if we have a bad winter then each push after that is bill additionally. I have never had a customer question it.


This is more or less the way that that works. No gambling, no bull. Just a good honest deal.


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