Bidding a grinding job

[bombdude]

Ok guys, need your input.

Got my new machine, got my insurance, necesary equip, I'm set.

Got my first call to go bid a job. Kinda know the guy, he works for my dept, & he saw one of my fliers.

3 stumps, he says, one large, the other 2 small.

I stop by & no one is home, but he said that'd be ok & described where the stumps were.

The large one is LARGE. 11 feet across at the base, oak, with barb wire & some other kind of wire fencing grown into it. Height varies from 1-2 feet as its on the edge of an incline and it was cut from various sides.

Second one is smaller. 30 inches across, sweet gum with a cylindrical concrete block buried under it. Maybe 1/2 of the block is visible out from under the stump. Cut low & level.

Third one is in between. It's inside the locked privacy fence, but appears to be 5 or 6 feet in diameter. unknown species. Unknown obstructions. Cut low & level

So I pondered. My first bid, so I wanna do it right. Factored everything in, used formulas, fellow cop, etc. etc. I come up w/$700.00

the response: his other 2 bids were $150 & $200 for all 3 stumps.

I was stunned. And I'm a newbie, & hungry. I coulda' said, "well, I'll do it for x amount then", but there was no way that I could do those for less than $150.

I politely said, "Man, I can't compete with that."

And, I know, I've heard about the guys that do it for beer money, and maybe that's the case here, but I'm wondering if my bid was that far out of line.

What are y'all's thoughts??

Sorry about the long post. I'm a little frustrated.:bang:

 

[Barry Stumps]

I really doubt that anyone bid that low. He knows your new and trying to get you to beat his sucker price. I wouldn't't do it for the $700. Tell him you was born at night but not last night. Don't look back at this one. I have had people tell me the same thing and just tell them you better hurry up and call him because you won't beat that and the stump will still be there the rest of the summer. You will learn as you go. You charge what you feel is worth your time and don't worry about being underbid. There is a lot of stumps to be had out there.

 

[Dadatwins]

From the amount of foreign material buried in the stumps the grinder will be needing some teeth after that job. On a job like that that I can see wire etc I would bid it high and let the customer know why. Tell them the cost of the teeth. I wonder if the other bidders even looked at the job or was it a phone estimate based on a per inch price? There will always be someone to underbid your price, this is a fact that you can't fix. Always do quality work, show up when you say you will and the rest will work out. Good luck.

 

[CraneOp1]

I would price these stumps at $2.00 per inch plus the cost of all new teeth for the stump machine. Also does your price include cleanup or is it grind and leave the mess? If there is cleanup on larger stumps like you described there is a lot of time involved in the cleanup and disposal. And like one of the other guys said if he thinks your price is to high and he can get it done cheaper by someone else, he better call that guy. Profit is not a dirty word. Also good luck on the new business, and be safe.

 

[bombdude]

Thanks for the input fellas. The more I think about, this deal, the more I believe that my bid was reasonable.

I bid another job yesterday that i still didn't get, but was in the middle of the three. I believe I'm in the ballpark.

Barry, you're right. The monster stump is right near the street. I'll make a pass every now & then & see how long it takes before he gets it done.

And you other guys are right on the money, too. $150 wouldn't even buy that new set of teeth that I'd need.

Thanks again.

 

[treeman82]

Unless something is going on where I really need to do the job, I just tell the person something along the lines of "Best of luck" I tell them to use the cheaper guy, because there's no way I could compete with that type of price. Heck, that job up here would be at LEAST 3K without any clean-up... other than whatever I had to do in order to get the grinder around the stump, and keep the mess off the street.

 

[bombdude]

I would price these stumps at $2.00 per inch plus the cost of all new teeth for the stump machine. Also does your price include cleanup or is it grind and leave the mess? If there is cleanup on larger stumps like you described there is a lot of time involved in the cleanup and disposal. And like one of the other guys said if he thinks your price is to high and he can get it done cheaper by someone else, he better call that guy. Profit is not a dirty word. Also good luck on the new business, and be safe.

I did not include cleanup, but I did include grading the shavings level so it could be mowed over. However, his immediate reaction to the price caught me off guard,so I never got around to telling him about that.

Heck, that job up here would be at LEAST 3K without any clean-up... other than whatever I had to do in order to get the grinder around the stump, and keep the mess off the street.

Wow, 3K is a chunk of change. Wish the market was that strong up here!!

 

[xander9727]

I'd bid that for $1500-$2000 plus any damaged teeth. The range is for how well I can access that job.

 

[treevet]

I did not include cleanup, but I did include grading the shavings level so it could be mowed over. However, his immediate reaction to the price caught me off guard,so I never got around to telling him about that.



Wow, 3K is a chunk of change. Wish the market was that strong up here!!

Man, 3k for approx 250". Westchester cty tho I guess. Like you were saying above and CraneOp1 mentioned try to remember to discuss clean up involvement no matter what. I think some clients almost try to avoid discussion of clean up so they can say they thought it was included and won t pay until you perform. That 11 footer could be a whole day in itself in 90 degree heat. Been there, done that. Good luck.

 

[rbtree]

I would price these stumps at $2.00 per inch plus the cost of all new teeth for the stump machine. Also does your price include cleanup or is it grind and leave the mess? If there is cleanup on larger stumps like you described there is a lot of time involved in the cleanup and disposal. And like one of the other guys said if he thinks your price is to high and he can get it done cheaper by someone else, he better call that guy. Profit is not a dirty word. Also good luck on the new business, and be safe.

Not too wise.....$2 an inch is low for a 1 foot stump...which has 113 square inches....

An 11 foot stump encompasses 11,695 sq inches, 100 times as much area to grind...so could be priced at $18 or so per inch, which would be $2376.....I'd not touch an 11 foot stump for less than $1500 if it had to be ground down 1 foot, and was sound.

Also, a stump that size could generate 10-20 yards of chips....you can't level out and rake over a pile that size!

A 6 foot stump would normally be worth $500-900 by itself.

 

[copper86]

Hey bomb,
Don't think that bid was unreasonable at all. I took an ad out in the local paper just today and had a few calls already and got one job. So far it has been a lot of friends who expect a good deal. I am optimistic though, trying to pay this small machine off so mabey next year i'll buy a bigger one. Well we will see. Don't get discouraged. good luck Mike

 

[stump grinder]

Bomb,
I have been at the stump business for six years. My first job was several of those huge stump and they all had rocks engulfed in them. It took 14 hours over 2 days to do that job. I mean the rocks were BAD. I ended up makeing $35/hour minus the teeth I killed. I charged $1.50/inch then. I have learned a lot since then. I am at $2.25/inch and I quote the large stuff by how many roots I have to chase out. your buddy wants something for nothing. Move on.You have your money tied up and need to get a return on it. If your are not making at least $50 per hour it is not worth it. I usually make at least $100 per hour. Any less and you might just as well work some overtime instead. I have been where you are now, I am happy share my info with you if you need any advice. The first year or so will be getting your name out there. So don't get disappointed. Also, remember you are running a business and not a charity. Watch out for the little old lady who says she is on a fixed income as you give her a bargain price. That happened to me. I showed up and then she left in a lincoln she had in the closed garage. Stump was a PITA too. She stopped me the other day, said she had some stumps at her warehouse! UGGH!!! She then wanted to know what happened to the $25 fee I charged her before. I told here it cost me $10 just in gas to get there! Lessons learned! Let me know if I can help.

Dean

 

[bombdude]

Hey bomb,
So far it has been a lot of friends who expect a good deal.

Mike,
I know what you mean about the friends wanting the kinfolk deal. I've had several offers to do their "practice stumps". I've got my own to practice on.

If your are not making at least $50 per hour it is not worth it. I usually make at least $100 per hour. Any less and you might just as well work some overtime instead.

I hear ya, Dean. Gotta do better than a security detail, or it's not worth the headache. I have had some success in the past 2 days, tho'. Picked up a couple of small jobs. One brought in about $60 per hour, the second about $120.

Thanks again for all y'all's input, fellas. I'm lovin' this site. Great & helpful info!!