# Bidding in '05/'06



## QualityKutz01 (Sep 15, 2005)

OK guys...Here comes yet another winter right around the corner. Gas prices here in Grand Rapids, MI arent expected to get below $2.50/gal this winter. Combined w/ 20 new companies in the area this year so far things are already hard with bidding. Many of the companies in this area are keeping prices the same as last year but I don't feel like losing that much money. I was thinking about putting in some type of a "gas tax" in the contract but people have told me that that will be too confusing for the customer. What to do? "Gas Tax" or "Raise Prices"? I've already lost 3 pvt. associations too new companies low balling. Getting frustrated!! Any Ideas?


----------



## flykelley (Dec 29, 2003)

QualityKutz01 said:


> OK guys...Here comes yet another winter right around the corner. Gas prices here in Grand Rapids, MI arent expected to get below $2.50/gal this winter. Combined w/ 20 new companies in the area this year so far things are already hard with bidding. Many of the companies in this area are keeping prices the same as last year but I don't feel like losing that much money. I was thinking about putting in some type of a "gas tax" in the contract but people have told me that that will be too confusing for the customer. What to do? "Gas Tax" or "Raise Prices"? I've already lost 3 pvt. associations too new companies low balling. Getting frustrated!! Any Ideas?


Yes sell your past service. Are the lowballers going to be showing when they are suppose to? I make sure that all of my lots are cleared by the time they open. I take pride that so far I have not had a phone call, Mike where are you. 
If you do what you bid for the price you bid it, when you say you are going to do it you will have plenty of work. I raised my prices 10-15% over last year. Most of the customers understand with gas being what it is. Chance's are those lowballers will not even be around next year or they don't get the job done. Then they will remember to call you from their past experience with you and ask you to bid.

Good Luck Mike


----------



## mook (Sep 19, 2005)

QualityKutz01 said:


> OK guys...Here comes yet another winter right around the corner. Gas prices here in Grand Rapids, MI arent expected to get below $2.50/gal this winter. Combined w/ 20 new companies in the area this year so far things are already hard with bidding. Many of the companies in this area are keeping prices the same as last year but I don't feel like losing that much money. I was thinking about putting in some type of a "gas tax" in the contract but people have told me that that will be too confusing for the customer. What to do? "Gas Tax" or "Raise Prices"? I've already lost 3 pvt. associations too new companies low balling. Getting frustrated!! Any Ideas?


two words... "fuel surcharge"

people should understand by now that fuel economy is hitting everyone hard. especially plow trucks who do residential work. driving to a from sites averaging 8mpg will leave a substantial mark on any business.

you won't be the only person raising prices this year, so just hope your service last year will leave them thinking of you this year.


----------

