How to Calculate Costs and Prepare an Event Bid

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How to Calculate Costs and Prepare an Event Bid

For PROs, events are both lucrative and competitive. However, to win the contract and profit from it, it’s crucial not to undersell your services or make mistakes during the bidding process. While some clients may provide an Invitation to Bid (ITB), others may offer fewer details.

Protect your portable restroom business by covering all of your bases, from cost variations to markups, before submitting your event bid. Plus, enlist help to review your document before sending it over to avoid any mistakes that may void the proposal.

Consider the Needs of the Event

Take a close look at details provided by your potential portable restroom client. With an ITB, instructions may be explicit, down to the color of the portable restroom units. Ask additional questions as needed to get a clear understanding of their needs and expectations. You may want clarification as to:

  • Estimates on crowd size
  • Expected food and beverage consumption among attendees
  • Types of units and the number requested
  • ADA requirements
  • Number of sinks and hand sanitizer units
  • Length of use (when the event is in session, days and hours)
  • Add-on requirements such as handwashing stations, locking toilet paper rolls, and lighting

Calculate Cost Factors

Once you’ve determined the event basics, go through your variable costs. Not all events are equal, so it’s essential to customize your bid accordingly. For example, the size of the activity or location may require more staff-hours, supplies, or result in higher dump fees and fuel costs. Figure out your pricing by adding up your direct expenses for the event before settling on your final numbers.

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Add Your Markup

With your direct expenses completed, refer to your list of indirect and fixed expenses. These figures include the cost of doing business, from insurance to advertising. If it’s been a while since you’ve updated these figures, take a second look at them now. Factor in any changes to ensure that you’re providing enough of a markup to cover your portable restroom business costs. When bidding on a significant event, a discrepancy in figures can undercut your profit big time.

Lastly, add your profit markup to your final calculations. While it’s crucial to stay competitive and not price yourself out of the running, doing so at the cost of profit isn’t wise. A successful event bid could result in an ongoing contract, so add a markup that reflects the value of your services.

Prepare Your Event Bid

Winning an event bid is more than numbers. For example, bids that don’t meet the precise specifications on the ITB may be disqualified. During the final stages of writing your proposal, PROs benefit from a second pair of eyes.

  • Double-check that each number is correct and that you’ve outlined all pertinent details.
  • Submit your proposal (and all required documentation) by the deadline.

Events provide an incredible opportunity to showcase your portable restroom services and create long-lasting relationships. Failure to accurately calculate costs and prepare an event bid can hurt your reputation and result in a loss. By considering the unique aspects of each event and double-checking your event proposal, you’ll guarantee that you’re on the way to doing more than breaking even.

Looking to Take Your Portable Restroom Business to the NEXT LEVEL? Download our FREE Guide: “Your Guide to Operating A Portable Restroom Business.”

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