# Bidding a commercial lot



## ifishwalleye (Sep 27, 2019)

I am new to the commercial snow plowing. The past two seasons, I plowed for an hourly rate and I would get reimbursed for salt. 
This year my one commercial wants me to place a bid for the season including salt. I want to give them a reasonable bid but I have not a clue on how to figure out what to bid! 
Last year I billed them for approximately $18,000 which included snow removal and salting. When I met with them, he stated that he thought that was on the high side; however he also said that I did a great job and that he doesn’t mind paying for quality work. 
So what they want me to do is write up a contact for November through March. 
I figured that I spent approximately $3,000 on salt last year. 
I would appreciate any help on how to place this bid. I want to be reasonable but yet I also need to make money!!!

Thank you!


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## BossPlow2010 (Sep 29, 2010)

Take the average for the past seasons and increase it to what you feel is right.


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## cjames808 (Dec 18, 2015)

What are the specs and sq ft of the lot?

You should be charging per application or by the ton spread as this take time, equipment and materials.


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## dieselss (Jan 3, 2008)

You cant really factor in salt at a seasonal price. You could be salting way more then another year or less.


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## ifishwalleye (Sep 27, 2019)

There is a frontage road that goes to the front lot which has about 50 spots and the back lot has two loading docks and is about four football fields. On average it takes me 2 1/2 to 3 hours to plow and 1/2 to 1 hours to salt. I don’t have to do any shoveling. So if you were bidding this job, how much would you charge?


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## Ajlawn1 (Aug 20, 2009)

dieselss said:


> You cant really factor in salt at a seasonal price. You could be salting way more then another year or less.


Huh??? That's like saying you can't factor in pushes cuz you could push more one year then the other...


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## Ajlawn1 (Aug 20, 2009)

ifishwalleye said:


> I am new to the commercial snow plowing. The past two seasons, I plowed for an hourly rate and I would get reimbursed for salt.
> This year my one commercial wants me to place a bid for the season including salt. I want to give them a reasonable bid but I have not a clue on how to figure out what to bid!
> Last year I billed them for approximately $18,000 which included snow removal and salting. When I met with them, he stated that he thought that was on the high side; however he also said that I did a great job and that he doesn't mind paying for quality work.
> So what they want me to do is write up a contact for November through March.
> ...


How many inches did you get last year that billed 18k? Was it close to your average? Over? Under? Devide that 18k by the inches you got last year and then adjust it in proportion to your yearly average snowfalls...

That is if you made money last year at what you did for 18k...

This would at least get you close and you can adjust accordingly...


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## Mr.Markus (Jan 7, 2010)

Owners will only ever look at what they paid last year and guaranteed it is more than they wanted. Let him know you did it per event last season that you dont want what the almanac is saying to come true and you make less than you did. 2 play you need to give him value and the heads up that you stuck your neck out for him last year. I dont like paying for a $90k truck with plow and salter to work it cheaper every year. Everyones number is different, everyones sales pitch is different. You dont need a number...you need to sell him on YOUR number.


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## Thrifty Garage (Sep 20, 2019)

I'd lock them into a 3 year contract if they want a full seasonal rate, including salt. It sounds like you already have a good idea what your costs might be. If last year wasn't profitable, determine what would be. Then determine what an average year looks like and price the 3 years accordingly. Give yourself some wiggle room. No reason to make this win/win for them and leave yourself open to losses.

Even on my seasonal contracts I keep salt separate so if it is a heavy snow year I won't loose money. Salt is a consumable product and quantity is completely dependent on so many variables.


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## m_ice (Aug 12, 2012)

I think the seasonal salting can vary from area to area. I cannot speak for areas with lake effect or high snow but I wouldn't think it would matter. 
Salt is included in our seasonals and it is based off the law of averages. I sell a long term relationship which is why I will only do 3 year seasonals. 
I could understand some sort of salt or service cap and act of God clauses but having trouble wrapping my mind around seasonal snow and no salt.
The attractions of seasonals is giving them a somewhat fixed number for their budget. If you do your leg work you should be fine and in return they give you guaranteed money every x months. 
Under the no seasonal salt pretext if it's a low snow year you should return money???


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## Ajlawn1 (Aug 20, 2009)

m_ice said:


> I think the seasonal salting can vary from area to area. I cannot speak for areas with lake effect or high snow but I wouldn't think it would matter.
> Salt is included in our seasonals and it is based off the law of averages. I sell a long term relationship which is why I will only do 3 year seasonals.
> I could understand some sort of salt or service cap and act of God clauses but having trouble wrapping my mind around seasonal snow and no salt.
> The attractions of seasonals is giving them a somewhat fixed number for their budget. If you do your leg work you should be fine and in return they give you guaranteed money every x months.
> Under the no seasonal salt pretext if it's a low snow year you should return money???


Echo...


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## ifishwalleye (Sep 27, 2019)

Well, good news... I bid high and they accepted my contract. 

I am thinking about investing in a 16’ Ebling back plow. I think that it would be a great piece of equipment. I currently do a lot of back dragging with my v plow which in my opinion doesn’t work all that well. 

Any opinions good or bad? Thanks


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## DodgeBlizzard (Nov 7, 2003)

If you did the lot for the last two seasons, you should know what you charged right? Why not use your total price and use that as your seasonal price?


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## jonniesmooth (Dec 5, 2008)

Go with the high quality of service aspect to sell your price. You can only be (x) number of places and have them done by 6,7,8 am.
You have a pool time spot on my route. Will the next ( cheaper) guy guarantee you that? And even if he does, is he lying. You have proven they are a priority to you, that's worth something too.


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