which word is best?

Jon

New Member
There was a post a few days ago asking about help on proposals.

My question is which of these 3 words is most professional?

Bid
Estimate
Proposal

Speak up one and all even though they all mean about the same thing.

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Jon Fleischer
Oasis Pressure Cleaning
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Fax (909) 792-5633
 

Scott Stone

New Member
A bid is something done for a government where you know that low price rules and you will usually have to honor that price.
An estimate is for someone that tells you exactly what they want done and wants to know how much it will cost to have you do it, but the price could change. That is why a body shop or mechanic give estimates and the price can vary.
A proposal is where you tell someone what you are oging to do for them, the methods that you are going to use and why they should let you do it in this way.

A bid is a fixed price contract.

An estimate is an educated guess that could change if there are significant changes.

A proposal is a sales device that lets you differentiate yourself from the people that think they are your competition.



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Glenn

Guest
What I have found out about estimates is, some contractors submit low estimates to win jobs only to invoice larger amounts up to twice the original estimate when the job is complete. I have seen this happen. If this is normal business practice for them, maybe I should do the same to compete?
Glenn

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Larry L.

PWN TEAM - Moderator Emeritus
As Scott stated,you have to honor the bid price for as long as the contract is for,weather be 1 year or more.Great care should be taken when bidding on something,chemical going up,labor cost up,ect.,ect. and in rare cases low bid want get it.

When I was milking we bid on school milk each year and I have seen milk prices go way up after the bid had already be accepted to the point where it was more then bid price,wow can't make money that way but you still have to HONOR the bid price.So great care should be taken when bidding.



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Ken @ Pro-Coat

New Member
PROPOSAL! It sounds professional, looks professional, and is professional.
You ,the professional spell out what you will do for a specified amount that you have quoted, and also how long the proposal is good for.
Bids will eventually get you in trouble. And estimates are exactly that.

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Ron Musgraves

Administrator
Staff member
Jon & Scott

I like Scott’s analogy about these words. I think he hit the nail right on the head. I have really never given it any thought as far as using one or the other. I never call it a contract when in fact that’s what it real is. A contractual agreement saying your going to bid, propose or estimate a job for a certain rate. I guess I don’t use any of these words because I use the word (agreement). I tell the customer I will draw up and agreement. I guess I’m a little more aggressive and don’t even think about the customer wanting a proposal because I’m focused on they are hiring me. I’m not thinking about anyone else that might put in a bid, proposal or estimate. I guess it to each his own, I just like to think that there is no one else to consider and here’s my agreement lets get on with it and get this job done. Some appreciate the forwardness and confidence and some do not. That’s ok because those who don’t I would rather not work for. They are weak and usually will be problem child. I have noticed that those that can’t handle pressure are usually unfair if problem should arise. Well, there’s a different side of the coin all-together take it or leave it but never give up.


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Ron Marshal Phoenix AZ
1-888-fleetwash
 
J

Jim&Shirley

Guest
we agree with scott could'nt exsplain it any other way,Its all depends on who you are talking to,and what they want Bid - Purposal- Estimate.



JIM & shirley




[This message has been edited by Jim&Shirley (edited January 13, 2001).]
 

AranServices

New Member
Hey Bigboy & all!

There are a few ways around being totally locked into a flat rate bid.

It's all in the right wording:
The trick is in stipulations - such as a price breakdown on materials where the crude oil prices can actually effect the cost of the chemical. In this type of situation you stipulate a low price on chemical and then raise it to market price.

How this can work: Lets say I pay $16.00 for a contractors price on a regular $20.00 chemical. I may price the chemical at a contractors rate. This allows me a little less loss if more chemical is required for a job.
There are those who do abuse this - this is NOT a reason to rob a customer. This is just added protection so you do not get hurt too much on unusual problem situations.

Another way to increase price is by basing your price on a time limit.

Lets say in a perfect job you can do it in 10 hours at $65.00 an hour. Lets say 1/2 way through the job you find that there are other stains under the stain you were hired to clean (like an adhesive spot under some clay & oil) To cover yourself in this situation you would bid $650.00 for upto 10 hours - additional hours will be billed at the rate is $60.00.

This is a way to protect you against any surprises!

A lot of jobs don't need this process - this is just for the hard ones!

Hope that helps someone!

Good Luck!


Originally posted by Bigboy:
As Scott stated,you have to honor the bid price for as long as the contract is for,weather be 1 year or more.Great care should be taken when bidding on something,chemical going up,labor cost up,ect.,ect. and in rare cases low bid want get it.

When I was milking we bid on school milk each year and I have seen milk prices go way up after the bid had already be accepted to the point where it was more then bid price,wow can't make money that way but you still have to HONOR the bid price.So great care should be taken when bidding.





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