Low bidders or pulling strings?

I bid on a commercial job two weeks ago and finally got a call back that I’m almost 3 to 4 times higher than everyone else. I can see being a few hundred cheaper, but this is crazy low.

I’m at 20c for concrete sidewalk under 10k sqft. I’ll go down to 18c for anything larger. That means people were quoting 5c to 10c. Are people charging a lot less for commercial work than residential?

For reference, I’m located in the North East. I’m also inline with all residential pricing from other PWers.

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If that’s what you need to charge than that’s what you need to charge. Let the other jokers break their backs for no money. :joy:

Some places are way more competitive than where I’m at though so it’s probably a little different but I’d rather do a handful of jobs at my desired hourly rate than 10 where im using volume to make up for lower rates. I kind of like my free time myself, but there’s more than one way to skin a cat

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The big crews on large amounts of concrete are sub .10 a sq ft in some areas, Just an FYI. It is simply the economy of scale applied to PW.

As an example of economy of scale, take supplies, specifically SH. My SH supplier told me upfront that the more I buy the cheaper it gets. I just don’t wash that much compared to say some people on here like @Innocentbystander or @JAtkinson who have multiple crews and use more in a month than I probably do all season. Their size allows them increased efficiencies on product costs/materials, which you would be competing against. I don’t know what size SC you are running, but say you are running a 24 or a 30, and they are running two machines each running a 50 inch cleaner, they are going to be done in less than half the time, once again economy of scale regarding their labor costs.

One guys take and worth everything you paid for it. They are not cheaper, they are more efficient, and their prices reflect that.

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I quoted washing a part of a university campus, with multiple buildings and 3 storeys high, stairs, balconies, sidewalks, windows… This is a busy place with hundreds of people walking in the way every day… And other complicating factors. I sent my quote and the guy called to say he had a quote at 25% mine. I felt truly bad for the other guy and went on to the next job, at my hourly rate.

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Yup, I have no idea how some people do it.

I’m the same way and I’ve never had someone come back to me about quality issues. I take my time and triple check my work.

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Commercial guys around here are about 1/3 resi prices. They roll up with the multiple 8gpm hot water units and like four Mondo’s. Zip zap.

I used to wash a whole bunch of trucks at 17.50 ea. it’s only good money when you can wash 14 an hour 16 hours a day between all of your trucks in the field.

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Neither low bidders or string pullers. You aren’t going to get much work when you are three or four times higher than your competition. Increase your speed and efficiency, lower your price and still more more per hour

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I stay busy at my rates. Was just posting because it’s crazy how some people can come in so low compared to the competitors I know (I also fix some of their equipment after hours).

I want a 50" SC… we have one that’s maybe 36, and no one ever remembers to take it when they have a larger area to do. All those things are true to be considered though, and the same applies to any business. They also run in cycles as you grow…right now our office space is a bit oversized for our current size, but we got something to grow into for a few years, so someone who has a large metal building on their own property has an advantage on us there. Just know your costs and where you want to be in the marketplace, and price accordingly. The better trick is figuring out how out get work at your price point.

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Your definitely not…but know more what you are providing, and who your customer is…we may be competing against people who wash houses, but what we provide is very different than just a clean house. We’re never the cheapest (or we did something wrong). Strive for ultimate efficiency (one of the things it says on our wall :wink: ), but even better, know who is your customer, and more importantly who isn’t. Learn how to explain your pricing, and why it is what it is, and at what level you’ll be happy with the results. It’s not the norm, but also not unheard of for someone to say they have a price for half of ours. Last week someone told us they got someone in business for like 20 years to do a package for like $350, our price was 3x that…I had never heard of the company, so that explains a bit as well. :man_shrugging:

There’s your problem. Stop doing that. Problem solved. Hard to work with broken equipment :joy:

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Haha - I get so much money from it because local shops are 4-6 weeks out and I can turn them around in a week or less so they offer to pay 2-3x the going rates.

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I seem to do well in HOAs and 55 and older communities where word gets around quick if you are good or not. I’ll pick up 2-3 jobs just from people walking up when they watch me work. They also tip nicely which more than covers lunch and gas to drive there and back.

I haven’t done much commercial except where the owner operates out of the building vs leased space. So it’s possible the leased style commercial doesn’t care as much with quality.

Wait, so you’re fixing your competitor’s equipment? What?

Yup, it pays very well and keeps my income flowing during bad weather days.

I mean business is business. They’ll just go elsewhere to get it fixed. Why not get an extra slice of the pie?

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Plus, it’s marketable info in a pinch… “I’m the area expert, those other guys come to me” :rofl:

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I should put my logo/number on the repair units haha

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Nah, you don’t necessarily want your name associated with the work anyone else is doing… if you’re doing good work yourself, that can only hurt you…