Lately we have lost a few bids that has me wondering if my pricing is way off.
For the past 1 1/2 years we have been fortunate enough to win several large townhome community bids. I based my pricing off of my overhead, desired profit, expences and payroll and what I thought the job was worth. Since we got the jobs I assumed we were in the ballpark with other bidders.
Recently we lost two major bids for similar townhome communities. At one, the HOA told me that I was high bidder by more than $15,000, and at the other we were high bidder by over $25,000.
Both communities are made up of the standard 2 story buildings with 6 units in each building. The bid included washing all buildings, the concrete 10x10 patio on each unit, the 3x12 front porch on each and the 4x10 sidewalk on each.
On the bid where I was $25000 high, it also included the public sidewalk throughout the community and the driveways on approxamately 1/3 of the units.
When I broke the prices down by the square foot, it worked out that the winning bid was
less than 7cent per sq/ft for one community and under 5cent per sq/ft at the other.
I don't think I could make a profit doing these at this price, so my question is:
Are these close to normal sq/ft pricing for townhome communities in the Carolinas? Or did I just run into a couple of low ballers?
If it is a normal pricing structure, I need to re-evaluate my cost!
Thanks
For the past 1 1/2 years we have been fortunate enough to win several large townhome community bids. I based my pricing off of my overhead, desired profit, expences and payroll and what I thought the job was worth. Since we got the jobs I assumed we were in the ballpark with other bidders.
Recently we lost two major bids for similar townhome communities. At one, the HOA told me that I was high bidder by more than $15,000, and at the other we were high bidder by over $25,000.
Both communities are made up of the standard 2 story buildings with 6 units in each building. The bid included washing all buildings, the concrete 10x10 patio on each unit, the 3x12 front porch on each and the 4x10 sidewalk on each.
On the bid where I was $25000 high, it also included the public sidewalk throughout the community and the driveways on approxamately 1/3 of the units.
When I broke the prices down by the square foot, it worked out that the winning bid was
less than 7cent per sq/ft for one community and under 5cent per sq/ft at the other.
I don't think I could make a profit doing these at this price, so my question is:
Are these close to normal sq/ft pricing for townhome communities in the Carolinas? Or did I just run into a couple of low ballers?
If it is a normal pricing structure, I need to re-evaluate my cost!
Thanks