Bidding On Jobs 50 Miles Away

shelf guy

Ok guys i have spent the past few months devouring every post on this site and learning as much as possible. I finally got my business started up (closet shelving) and ive been in contact with a builder that wants to meet with me thursday. They have a 45 house subdivision going up about 50-60 miles away. And its not like I can just jump on the interstate, its all highway and city travel. Now the good thing is, I know the builder, when i used to work at a lumberyard in that area he came in all the time and we talked quite a bit. So im a little at ease.

My question is this. Any tips on how I can be competitive and still not lose my shirt on the deal?

BTW im not desperate, i have about a years living expenses. But id really like to get the ball rolling lol.

Heritage

You got to look at the big picture. I used to work as a production manager for a big sign company (based in Toronto). They had contracts with Shoppers Drug Mart (big chain pharmacy). I had to travel as far as Montreal for installs. That's 6 hours each way. The sign company takes the hit when they have to pay me for 12 hours of driving time, accomodation, meal allowance, gas and kms on the truck. But big picture is the 1million+contract. 45 homes @ 2k each is 90k. Deduct all your expenses due to distance, then look at it again. How does your profit margin look now? Factor in future business with the builder and portfolio appeal as well. Good luck

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AtlanticWBConst

For one, don't forget the cost of your mileage (gas) in the equation. It's going to add up.

Also, realize that the key to being competative on your pricing is:

"Production" - How quickly can you do the installs....How efficiently can you set up, move, install, set up, move install, etc, etc...

Focus on what you can do to make things go quickly and efficiently, that is the edge that will allow you to price competatively.

Possibly a 'tote' cart, tote tool-box, spare cordless batteries, a small tool pouch on your belt with the 'key' tools - right at your reach. There are many areas to examine in order to increase productivity....
Precutting some parts off sight...

-my 2 cents...

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- Build Well -

Mike Finley

He's a builder right? You're going to lose your shirt if you want the work.

Don't give any verbal or ball park numbers no matter how many times you are asked for them. No matter what number you give it will be wrong and you will regret it. After you get the info go home and work up the numbers. Take your time if this is your first go of it. Nothing is worse than being rushed to end up with a number you will later regret. Doing it and having to do it on one job is bad enough, having to do it over and over again on 45 of them!!!!!!

Seriously, come up with a number that makes sense to you and then don't budge on it no matter what. If you get tempted to change your number for something he tells you that soundsl like it makes sense, tell him you will think about it and get out of there without committing to it. Run the numbers again, take your time, ask more questions here, then get back to him.

This isn't the way to do business once you are established and have some experience under your belt. But it is the way to do it in the beginning if you want to make sure you don't end up losing your shirt.

Have a written contract.

Have a written contract.

Have a written contract.

Have a written contract.

Have a written contract.

Have a written contract.

Have a written contract.

Have a written contract.

Have a written contract.

Have a written contract.

Have a written contract.

Have a written contract.

AtlanticWBConst

Alot of us make a good penny on work change orders, additions to the original work.

So, I'll add to Mike's point:

Have Written & signed Work Change Orders.....

Have Written & signed Work Change Orders.....

Have Written & signed Work Change Orders.....

Have Written & signed Work Change Orders.....

Have Written & signed Work Change Orders.....

Have Written & signed Work Change Orders.....

Have Written & signed Work Change Orders.....

Have Written & signed Work Change Orders.....

Have Written & signed Work Change Orders.....

Have Written & signed Work Change Orders.....

Have Written & signed Work Change Orders.....

Have Written & signed Work Change Orders.....

Before you start the extra work!!

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- Build Well -

shelf guy

thanks guys. its just going to be too tempting to "give in" to the builder, since i want the business so bad.

my main concern with the distance is the gas money, not my time. i know i should place value on my time, but ive got all the time in the world right now. what i want/need is MONEY

Susan Betz

"My question is this. Any tips on how I can be competitive and still not lose my shirt on the deal?"

Who are you worried about competing with? Other shelving guys that are closer to the job? How did you get invited to bid this job? Consider your strengths when you set your price; they're as much a part of the price as travel time, materials, and labor.

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Fences of Distinction, Ocala, FL
http://www.fencesofdistinction.com

shelf guy

yes. there is an insulation company there that does shelving cheap (if you use them for insulation) and they have a pretty poor reputation for quality.

but you know GCs and thier bottom line

and i didnt get invited to bid the job, i asked for it.

Susan Betz

I'd hammer them on the quality issue anyhow. But you'd better be ready to list why you're better. Include specs.

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Fences of Distinction, Ocala, FL
http://www.fencesofdistinction.com

shelf guy

that will not be a problem.

Susan Betz

It never is for those who got it.

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Fences of Distinction, Ocala, FL
http://www.fencesofdistinction.com

MarkNoV

If your personal situation allows it I would find a short term rental for the duration. One hundred miles per day eats up between $300 and $400 in capital resources.

Mark

Magnettica

If you can do fifty miles in an hour, multiply it by the number of trips you'll make to do the job and charge out your hourly rate for those trips. Hopefully your hourly rate includes the anticipated increase in gas prices so that gets covered. If you haven't, then add the cost of fuel to your materials and give them your price.

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Electrician service in Rahway, Cranford, Clark, Westfield, Mountainside, Scotch Plains, Fanwood, Roselle, Roselle Park, and New Jersey | Same day electrical service and repairs | Licensed and Insured Electrician in Rahway

send_it_all

I dont believe you'll get away with billing this builder for your entire fuel comsumption. Fuel is overhead imo. You can up your overhead percentage a coupla points for this job, but if you try to get him to foot your entire fuel bill, you'll probably lose this job. (If you are charging for your labor, overhead and profit correctly.)

Chris Johnson

Hit him with a fuel surcharge (LOL) everyone else is these days

ruskent

50 miles is not to bad to travel for work.

Better to travel 50 then sit home and surf contractors talk all day.

dirt diggler

oh snap



hey - as long as you can make on the travel expenses .... get early starts ... knock it out

Magnettica

Says who?

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Electrician service in Rahway, Cranford, Clark, Westfield, Mountainside, Scotch Plains, Fanwood, Roselle, Roselle Park, and New Jersey | Same day electrical service and repairs | Licensed and Insured Electrician in Rahway

shelf guy

LOL how true

PeteHalsted

What I haven't seen mentioned is how many trips its going to take. Is he going to be far enough ahead of you that your will be able to work straight through or will it end up being start/stop (few this week, few next week). That will make a huge difference.

Also remember even though your tempted to take a lower price to get the ball rolling, its very hard to ever get back to the right price. I have clients from when I started that I have slowly moved up in price but are still below the price of my average client.