Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
I just submitted the biggest proposal of my life, and I'm nervous!!
Old 09-22-2007, 10:11 PM   #1
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
I just submitted the biggest proposal of my life, and I'm nervous!!

I own an air duct cleaning business in Ohio. So far I've done 2 schools for a local district, I just put my bid in on the 3rd one....it needs to be completed during xmas break.


I feel I was reasonable on the price, but the price I gave is the highest bid I've ever given (about $15k). I'm essentially doing 3 times the amount of work as the previous school, but for only double the price. I figured that out using per-unit price (19 rooftop units in this school vs. 6 interior units on the last one).

They are really happy with our work so far...the guy I deal with directly is always complimenting us, and I recently met HIS boss, the business manager, and HE complimented our quality work. I was at his house giving him an estimate on cleaning his ducts! TO MY KNOWLEDGE, they've never gotten any estimates to compare to mine for either school. He just seemed to like me 100% based on his impression from our website. The guy talked like we had the job(s) from day 1.

But even though the repoire is great, I'm nervous...mainly because of the $$ amount....it's very high for me. I could do the job for half of my estimate and still be satisfied with my $$ per hour, but I'd be cheating myself. I've been slowly raising prices til I see resistence on these commercial jobs...we'll see if this does it!

In March, I should be officially putting in my estimate on their biggest school - 360,000 sf!! After much thought, I think it's going to be about $50k or so....but I'll have to walk through again.


Regardless, this relationship looks to be very solid, but I'm very nervous. Just thought I'd share
__________________

__________________
thefed is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-22-2007, 11:20 PM   #2
Recycles dryer sheets
 
Join Date: Jun 2007
Posts: 316
Quote:
it needs to be completed during xmas break.
As a customer, I expect to pay a little more during this time of year.


Quote:
I'm essentially doing 3 times the amount of work as the previous school, but for only double the price.
If your customer has any problems with the price, then repeat the quote.


Quote:
I was at his house giving him an estimate on cleaning his ducts!
Any chance he's looking for a freebie (kickback?)
Quote:
He just seemed to like me 100% based on his impression from our website. The guy talked like we had the job(s) from day 1.
Maybe it's because you present yourself well, and he trusts that you are good at what you do.


Quote:
I could do the job for half of my estimate and still be satisfied with my $$ per hour, but I'd be cheating myself. I've been slowly raising prices til I see resistence on these commercial jobs...we'll see if this does it!
Good, find out what the market will bear, and never ever be a lowballer. It can lead to you needing to cut corners, and that'll catch up to you and your good reputation every time.
__________________

__________________
Grizz is offline   Reply With Quote
Old 09-23-2007, 12:56 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,278
Do you have all the insurance you need?? I know my company required $1 mill and I think they just upped it to $2 mill...

Also, companies are used to paying more than residential... but you are correct... keep upping your bid until you get a 'sorry' and then lower it back down a bit... never expect to get all your bids or you are bidding to low...
__________________
Texas Proud is online now   Reply With Quote
Old 09-23-2007, 04:18 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Fed,

TP is correct, you will have to fish for the competitions price.

One thing I was wondering was if bids for publicly owned organizations are made public? It seems to me that I have seem bids that have been awarded in the paper on certain types of jobs. Is there a way you can get historical information? It may be that I am thinking about construction projects.

My father had a construction contracting businesses. He was a small business owner and had less overhead. He could produce low bids and win jobs and make quite a it of money because he had less overhead.

You are getting business, and it sounds like you are making money... Good Job!
__________________
chinaco is offline   Reply With Quote
Old 09-23-2007, 11:01 AM   #5
Recycles dryer sheets
Scrapr's Avatar
 
Join Date: May 2005
Location: Bend
Posts: 267
fed

is this Davis Bacon work? Prevailing wage? Might explain why they are happy with the price.

I know that when we have worked on schools it was DB. Higher costs, different work rules.

You don't want to have to go back and pay your employees more $$$$ 1 year after the job wraps up
__________________
Scrapr is offline   Reply With Quote
Old 09-23-2007, 03:41 PM   #6
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
Quote:
Originally Posted by Scrapr View Post
fed

is this Davis Bacon work? Prevailing wage? Might explain why they are happy with the price.

I know that when we have worked on schools it was DB. Higher costs, different work rules.

You don't want to have to go back and pay your employees more $$$$ 1 year after the job wraps up
No, it isnt. I never have even heard of that til I just looked it up. Seems we charge more like 5x prevailing wages!

Texas Proud: We're at about 1.6 mil .

Chinaco: Im sure these things are public info, but not newspaper public. These jobs are being paid for out of 'slush' funds. They haven been getting other estimates because they are under the magic $$ amount. Once it hits xxx dollars, they have to get bids (they wotn tell me what xxx dollars is). However, they suggested I separate my bid for the big school coming up into multiple bids to ensure it slips under the limit.
__________________
thefed is offline   Reply With Quote
Old 09-23-2007, 06:15 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,278
Quote:
Originally Posted by thefed View Post
However, they suggested I separate my bid for the big school coming up into multiple bids to ensure it slips under the limit.
Well, that would get them fired in my company without question.. won't even let you pack, they will send your stuff to you....

I don't think that the company was punished by being removed from the acceptable list, but if it looked like you were involved with it then it might...
__________________
Texas Proud is online now   Reply With Quote
Old 09-23-2007, 06:56 PM   #8
Recycles dryer sheets
Scrapr's Avatar
 
Join Date: May 2005
Location: Bend
Posts: 267
fed

I'm not sure you understand prevaling wage. Generally, it is based on union wage rates for the area. Each job will have a large binder with job functions and the set wage rate for that particular job. There are strict requirements on meeting the pay requirements. But the deal is they don't audit for it until sometime after the job is done. It's called certified payroll. (I think) If they determine that you have not paid prevailing wage then you get to make it up. And then the funds go to the workers.

If you are paying 5x's union rate for payroll that is impressive.

it sounds like you are comparing Gross Sales to Prevailing Wage requirements

watch your back
__________________

__________________
Scrapr is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
The Biggest Misconception about FA's.............. FinanceDude FIRE and Money 32 12-10-2006 03:24 PM
Should I be nervous? DFW_M5 FIRE and Money 21 07-26-2006 11:13 AM
Biggest money fears HFWR FIRE and Money 8 09-18-2005 08:13 PM
Indecent Proposal Eagle43 Other topics 30 08-17-2005 07:51 PM
Market Nervous? haha FIRE and Money 16 05-03-2005 05:30 PM

 

 
All times are GMT -6. The time now is 03:59 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.