PDA

View Full Version : Commercial account's I dont get them!


nobagger
02-26-2006, 12:01 PM
I bid a few commercial properties and I cant believe I was more than the other bigger company that won the bid. It doesn't make sense, these other companies have to be in the $50-$70per hour range and I am in the $35-$40 per hour range. Our work is just as, if not better quality than these guys but they seem to get the majority of the nicer accounts. What gives? Should I increase my rates to make it seem that we are of the same "caliber" as these bigger companies? All of our bids are complete with a set of pics so they can see the quality of our work. I just would think in this economy they would try and save some money.:confused:

FairwayLandscape
02-26-2006, 12:12 PM
opportunities to even bid.
We need help too?!

stumper1620
02-26-2006, 01:09 PM
I bid a few commercial properties and I cant believe I was more than the other bigger company that won the bid. It doesn't make sense, these other companies have to be in the $50-$70per hour range and I am in the $35-$40 per hour range. Our work is just as, if not better quality than these guys but they seem to get the majority of the nicer accounts. What gives? Should I increase my rates to make it seem that we are of the same "caliber" as these bigger companies? All of our bids are complete with a set of pics so they can see the quality of our work. I just would think in this economy they would try and save some money.:confused:
Your not alone!
I have tried for several years for the same places, I know its not the guys prices or his performance that he is getting these. I'm beginning to think if you are not connected internally you can't win on some of these.
the bids are just a front for the board members.

Green Leaves
02-26-2006, 01:13 PM
A large part of landing all accounts is who you know.

gslawncare
02-26-2006, 01:28 PM
DUH, your either gonna have to start killing or blowing to get in that BS

skurkp
02-26-2006, 01:32 PM
I have only a few accounts, but the ones I have, I did know someone and yes it helps. My work is as yours, equal to the larger companies. I have a friend that owns an electric company and he tells me to join in as many associations. Usually they work among themselves. This season I will do just that, one of my common area mangers told me that property management companies are members of an association and that they use companies in their association. Can't hurt.

ed2hess
02-26-2006, 01:44 PM
I think you might be surprised about how much the bigger companies get, we bid against TG and they are not as high as you indicate. It is easy to give TG the work when they are the low bidder with reputation. What we have to do is work the personal aspect with instant response to problems and reasonable prices on the extra stuff. The solo and part time guy has to convince them he can respond on short notice and references of other commerical accounts can be important. And it is important to "hit it off" with the guy making the decision.

aceman71
02-26-2006, 01:45 PM
I don't necessarily think it's who you know although it helps...when I started 2 years ago I knew nobody...for me it was persistence and being very professional..in 2 years 70 percent of my business is commercial. I know that for some of us being set up for efficiency is the key ...for example with my set up I can do an account in 45 minutes that it took my competitor and hour and a half to do..Good luck!

cklands
02-26-2006, 02:07 PM
I wouldn't assume that the larger companies are charging more than you. They coud be charging less and just making their money in quantity. Think of how many 99 cent hamburgers McDonalds sells.
There are also times that the commercial accounts will go with the larger companies, even if they are charging more, because they have the name behind them.

crzymow
02-26-2006, 02:23 PM
Also have to take in to consideration the equipment some of them use. May cover the area faster so they arent there as long so their price may actually be less then yours, even if their hourly rate is higher. I do think it help who you know a lot of times, plus if that same company has been doin the work for a few years and they are happy with them, they may not leave even if you are cheaper because they know what they are getting. Not everyone goes with the cheapest.

stumper1620
02-26-2006, 02:33 PM
I think the big thing wih the Guy that is my problem is not the size of his company ( it's no bigger than mine) I think its the fact his daddy owns the only funeral parlor in the town and they are all afraid to piss him off since no one knows when they will need them. His quality sucks and he is cheap because ( I think ) the lawn care is a tax shelter.

Wayne Landscaping
02-26-2006, 03:19 PM
Yeah, i would say that some places look at a higer price maeaning higher quality. If i were u, i would apply higher prices to places that can afford them, like big complexes or franchises that can write it off. But like small places that have just a little grass, try to go low, i dunno, do an experiment

QualityLawnCare4u
02-26-2006, 03:29 PM
Same way here. We have 2 lawn services that have better than 90% of everything. I have bid before and been cheaper (I try not to be much cheaper) but they still get them. I guess its the 2 dozen new lettered trucks, all guys wear uniforms professional look. But my equipment looks just as good and I dress and look decent. Ive just decided its also connections and I dont stand a snow balls chance in h-ll.

SamTheLawnMan
02-26-2006, 03:29 PM
I have been told by one of the commercial bids that I did last year that they went with the higher price bid cause they thought that if they had a problem with anything that the bigger company would be more likely to take care of them.......Boy if that's not a misconception!!!!!!!

nobagger
02-26-2006, 11:03 PM
I actually am going to try a few lost leader bids and add 25% to the bid and see. My schedule is pretty full, we have almost 40 lawns and I need about 15-20 more to justify hiring more guys. But like so many have said in here "they wish they would have stayed a smaller company" so thats the direction I'm going. However I would like to pick up about 3-5 more solid customer's, hopefully commercial ones.

LwnmwrMan22
02-26-2006, 11:17 PM
It also depends on what equipment you have behind you.

Do you have a bobcat or compact tractor, where you can do some emergency work for them in case someone decides the lawn is a raceway??

Are you able to, within 1-2 hours able to drop everything and do a medium or large cleanup in case of damaging weather??

It's not always what you see right in front of you that these people are concerned about.

It's what MIGHT happen that they want to be covered as well.

I do small to medium sized commercial accounts. Stuff from gas stations to Wal-Marts.

I have a compact tractor, 45 hp, 2 new trucks, 2 of everything.

I sell all of this when I talk to managers / property owners, telling them that my life is invested in my business.

No, I'm not as big as some of the other companies, but I can handle anything and everything that is sent my way, within 4 hours, in cases of emergencies, short of major renovation.

I've got 2 Wal-Marts that I do.

The managers call me and tell me "big wig from Arkansas is coming on XXXXXday". I make sure I'm there the evening before, even if I just cut 3 days ago.

It's stuff like that you have to tell them that you're going to do, able to provide.

You need to sell the fact that you're onsite, going to give them the personal touch.

You don't need to be cheaper.

If that doesn't sell, then they're probably already happy with who they have and aren't looking for someone else.

I've given up on getting accounts that were already being serviced by someone years ago. I only go after properties that are newly built, or bought out by someone.

lawnman_scott
02-26-2006, 11:18 PM
There are alot of things that it could be. Dont assume that its who you know and someone who has a higher bid gets the account. This happens sometimes but not often. I have seen a few bids from other companies (not alot, maybe 5 in 10 years), but most were from bigger companies. I just cant beleive what some people think looks good in an estimate, or bid form. I can honestly say I have by far the best and most comprehensive and professional forms I have seen anywhere, in person or on this site.

Kohls Landscaping Co
02-26-2006, 11:26 PM
A lot of companies are required to receive bids on maintenance every year due to company policy. Whether or not they are looking for a new company to take over.

I'd have to agree that "It's not what you know, it's who you know..."

Dave

cpel2004
02-26-2006, 11:40 PM
My problem is I don't have commercial references, companies like CVS, Walmart, Circuit City and Best Buys, they all want refs. I cant seem to get around that. I know I have alot to learn and yea I don't have the resources like the "Big Boys." But my work is second to none. I can't blame them for asking for refs, but I just want to play ball in the big arena. In do time, I guess. Its a heck of a selling point when you tell a homeowner that you maintain their local Electronics store.

meets1
02-27-2006, 12:48 AM
What LwnmwrMan22 said!!

I am in the same boat. Offer everything but be able to back it up with equipment, crew members, etc. The age old antage (One call does it all) type of thing.

I have a walmart, local grocery store right next door, a pizza hut next to that. I or at least my guys are there. I can bid that cheaper cuz my trucks park and guys work for a few hours - property to property to property. When we spray and fert - same thing. Trim bushes, trees, etc same thing. Everything is there to handle the job - do it efficiently, do a great job and have few worries.

Now don't go out and buy 2 or 3 of everything cuz he need this to get a job. Commercial is not all cracked up to be what everyone thinks it can be. No your cost, your equipment - what it can handle, your routing - be it in a small community or a large metro area. Focus on your niche market that you have - maybe you'll do an owners / managers house yard and b/f ya know it your mowing the whitehouse!

skurkp
02-27-2006, 08:41 AM
I agree with the one service provider for all services. We try to offer everything that could possibly come up. The property managers seem to like the fact that they can contact their landscaper and they can handle it. I out source all of my chemical, trees, decks, ponds, etc. The manager or homeowner likes that they only have to deal with one person or company and there is none of this "Well that is not my responsibility, so-n-so did that." I have had to get my irrigators license so that my accounts don't have to look for another company for those issues. Has really been great though, I have been able to take on more work. Also as stated before don't go and get a lot equipment with out the work or the need, you will just have stuff sitting. I have been very lucky, looked around and found a great deal on some larger equipment that helped me to finish properties faster. But I had the contracts first, and what used to take me 3-4 hours I can get done in 1.5 hours. Good luck and be persistent. I have a meeting on Tuesday with a company that had a landscaper and I just kept sending a quote once a month. I got the call on Friday and the guy told me that I had sent several quotes and he would like to sit down and talk about what I can offer.

Tyner Lawn Service
02-27-2006, 10:25 AM
I have been told by one of the commercial bids that I did last year that they went with the higher price bid cause they thought that if they had a problem with anything that the bigger company would be more likely to take care of them.......Boy if that's not a misconception!!!!!!! I'll second that, There are some good large companies but few and far between.

Duck Dodger
02-27-2006, 11:12 AM
You guys shouldn't't get frustrated. All things in life that are good take time and energy. You just have to start from smaller properties. Just keep doing a good job on residentials eventually someone will notice what good work you do and it will help you bid the larger props. Rome wasn't built in a day. I think when people have a hard time with their company growing its because they try to grow to fast. True there are some accounts you may never have a chance unless you are a relative or really good friend but opportunities will arise if you do good work. How many do you think start out in this bizz with huge commercial props I'm sure there are 1 or 2 but I bet overall they had to work at getting to where they are.

Remsen1
02-27-2006, 03:42 PM
I think the big thing wih the Guy that is my problem is not the size of his company ( it's no bigger than mine) I think its the fact his daddy owns the only funeral parlor in the town and they are all afraid to piss him off since .

Is it just me or does this make absolutely no sense whatsoever?

mowforyourmoney
02-27-2006, 05:10 PM
A large part of landing all accounts is who you know.
i couldn't agree more i'm going to hopefully do 3 commercial accounts all because of friends that have influeace at the companies if ya want some advice i'd ask a couple good friends to try to hook you up with werever they work

TJLANDS
02-27-2006, 08:47 PM
You guys shouldn't't get frustrated. All things in life that are good take time and energy. You just have to start from smaller properties. Just keep doing a good job on residentials eventually someone will notice what good work you do and it will help you bid the larger props. Rome wasn't built in a day. I think when people have a hard time with their company growing its because they try to grow to fast. True there are some accounts you may never have a chance unless you are a relative or really good friend but opportunities will arise if you do good work. How many do you think start out in this bizz with huge commercial props I'm sure there are 1 or 2 but I bet overall they had to work at getting to where they are.
Good post. Dont get frustrated because of what you heard about commercial work. There are way more positives with commercial work than negative. And absolutely more money.

nobagger
02-27-2006, 09:02 PM
Good post. Dont get frustrated because of what you heard about commercial work. There are way more positives with commercial work than negative. And absolutely more money.
Yeah but its the getting into thats frustrating.lol As far as more money...maybe in most cases but not all. My luck is I give great bids (or so I think) and they say I'm too high on this that or the other thing. I know for a fact (well last year) I was one of the cheaper companies when it came to mulch, and when I gave some great bids just to get the job, I heard again "too high on mulch". I came right out and asked the company who got that contract how much he was doing it for and he was $18.00 more per week for mowing and a whopping $300.00 more for mulch. So I don't get their thinking.:confused: