[Assured Services]

If last years winning bid was $130.00 per push, for about an hour an 45 minuets of plowing tops. What would you bid this year for the same, only a Two year contract?? All bids are per push, for a fire station with a one inch triger.

 

[NWPA]

We would quote the same number and guarantee it for the two years....

 

[Lawn Lad]

Bid the same price for two years... you're just telling them it won't go up next year, even with increases in all of your other costs. No reason to discount any mroe than you already will be by not raising prices.

For our per occurrence accounts and limited seasonal contracts we give the same price for up to three years. On a no limit seasonal contract the 3 year is the best price and then I increase the factor for a two year and again for a one year contract. We don't know how much it's going to snow, so I figure extra plowings for the no limit. THe pricing then looks like the three year is reduced, but it is the number I need over a three year period to make the contract profitable.

 

[CNY Joe]

I agree if you are still making a profit at $130.00 I would not change it.

 

[castle]

Sorry guys but I have to be the odd man out. I would allways recommend a price increase for the following year. Most people will understand a small increase for cost of living or doing business. The real key is to be in a "position of strength" where you have enough business to ask for a moderate increase and not have to sweat losing a customer or two. The last time I checked Western and Meyers arent planning on a price freeze anytime soon...

 

[Alan]

I prefer to work on a three year basis. I figure the price at this years numbers and add a percentage for inflation for the next year. Then I use the second years number for a three year span.

For example, job is worth $1,000 this year. I add 10%, bringing it to $1,100. I'll use that number for each year of the three year span.

Granted, if I burn, I burn for three years. But as long as I'm doing my part right I have lined up work for three years. I don't have to spend time bidding it again or have to worry about it being there "next year". If I can stagger them out I keep a contract base in effect and it helps to shield me from lowballers two years out of three. I can also plan equipment upgrades knowing how much I can count on for a couple years.