View Full Version : Just lost a bid
2 man crew
02-20-2002, 04:24 PM
Well I just got the news on one of the commercial properties I bid on for this year’s lawn care. Well the answer was NO. This was 5 medium sized commercial buildings and a 3-year contract. My bid came in at around $45,000 per season. So I asked the decision maker what was the reason I didn't get the bid. He said " well obviously price was part of the decision." So I said " well how much of a price difference was there" Thinking I might still have a shot.:rolleyes: He said the company that got the job came in at $18,000 per season! I was shocked. So I said "WOW that's low." He said " No kidding, they really came in with some good bids this year. I was surprised to see that myself". Then I asked him if they were the only ones that low, or were the other LCO's closer to my bid. He said "There were 2 others that had low bids but most were around yours." I did get one more tidbit out of him too. He told me Land Care USA was at $47,000. So that made me feel good about the whole thing. I know who the company is that got the bid. They have been doing these properties for a few years.
Maybe they know something I don't. All I can say is every thing works out for the best. Ya win some, ya lose some. But if your gona win some they better be at your price. ;)
Premo Services
02-20-2002, 04:44 PM
:eek: :eek: :eek: :eek:
WOW!!!!!!!!! The lowballers bid is $27000.00 lower than yours. There must be a lot of services offered in the bid price. You will see that most of the items on the job are not done right or most likely not at all. The decision maker will be getting a real let down in services at that much of a difference in price. and then you will sit back and say " YOU GET WHAT YOU, or in this case, DON`T PAY FOR".
I know the feeling ive been in the same boat as you, but just like Premo said you get what you pay for. You know they can't be pulling much profit at all, 5 commercial sites for just around 560.00 dollars per stop. It does make one wonder how they survive, even if they are alot larger in man power thats still only around 112.00 per site. I just revert back to a old saying my grandma used to say,just scratch you azz and get glad. Youll probley get a better deal somewhere down the road. Keep your chin up, you knew when you made the bid what you needed to make a good profit so don't let this effect your prices. Marks Mowing Service
Twotoros
02-20-2002, 05:45 PM
Everyone here know's how you can bid that low. No taxes paid to any govt. agency. 6$ an hour employees. Run down equiptment. Beat up trucks and poor quality work. You now know what to bid when the owner comes crawling back.$47500.
Randy Scott
02-20-2002, 06:31 PM
Such is life! :)
RON66106
02-20-2002, 08:11 PM
Originally posted by Twotoros
Everyone here know's how you can bid that low. No taxes paid to any govt. agency. 6$ an hour employees. Run down equiptment. Beat up trucks and poor quality work. You now know what to bid when the owner comes crawling back.$47500.
Don't forget that these people are porbably not insured either!
I lost two bids this week. I told them basicaly what twotoros said and one of them didn't even know if the person had insurance or not.
Don't let it bother you do as I do and go out and drop off 10 or 12 proposals letters. I have had these kind of people call me in mid season wanting to get out of the mess they are in. So keep it in mind and adjust the price accordingly (everything can have an a$$ hole tax)
southcut
02-20-2002, 09:47 PM
The same thing happened to me with a bid for eight tire stores. A company out of Wake Forest, NC bid the same stores in Charlotte, NC and was less than half of my bid. We are talking about $75/week /store and the company from Wake Forest bid $27/week/store. Needless to say they got the contract. I have been told that they tried to contract all the Wachovia bank branches and were going to sub all the work out locally. They gave a big song and dance to a few local lawn services and after the local guys put time into estimating all the branches, the wake forest company pulled out. I hope they keep doing business this way as they won't be around very much longer.
RoewMow
02-20-2002, 10:00 PM
Unfortunately, I know what you mean. We just bid a job at a Steakhouse, and the gm said that our bid was almost 2x the lowest one. This place has numerous plantings/trees to cut around and trim/edge. We even included cleaning by a state fence for better roadside viz and the other guy didn't. I guess I'll just have to redouble my efforts on other props.
Currier
02-20-2002, 11:32 PM
I'm with you on the agony of defeat thing ...or would that be the agony of victory if you had won it at the dirtball lowboy price!
So far this year I have bid out two commercials and was WAY higher than the winning bid. The first one I expected and was not real interested in anyway. The second happened last week and I really gave a solid bid. It was for a (gag) homeowners assoc. I bid it at 225 per week 26 week season.
They went with someone that is going to do all the mowing in 6 months, include the fertilizing, do sprinkler maint. (included), and set up and monitor the sprinklers for $1155.00 total.
It gets downright ridiculous. I figure this guy is going to be making about 14 an hour...and that would be if he were running a Walker....I wonder if he is insured? I'd be curious to see how he gets it all done in 6 months...must be magic.
65hoss
02-21-2002, 01:02 AM
Its just part of the fun!
I lost a comm'l property last year to a true lowballer. I inheretied the property and it was already low. They found some sucker that came in and bid $35 per cut. It was a 3-4 man hour job for his equipment. They asked me to meet his price and keep the job. I laughed (true story). Told them i was already thinking of raising the price. No thanks, I'll go broke from the house. I don't need this job to help me go broke.
Mykster
02-21-2002, 02:00 AM
I set one of my clients up w/Chem Lawn and in turn around Chem Lawn sent a job to me to bid on for a HOA. 115 units (duplexes and homes), which came to around 80,000 per year. Was told by Chem Lawn that I was the lowest bid and that I got the bid. Weeks went by w/out hearing anything. The HOA wanted the sevices done on Thurs. and Fri. So I would drive by every week to see how long the grass was getting. Low and behold there's another company that was there working. Asked them if they were the ones who got the contract. They said yes. Called Chem Lawn and they said another LCO came under mine by 8,000. They said it was a last minute bid and there sister company decided to bid and got the account. Was kind of shocked that the largest LCO in the country came in so low. 2mancrew says it best "ya win some, ya lose some"
David Haggerty
02-21-2002, 06:35 AM
It makes you treat the lawn as an annual instead of a perennial. Nothing's ever considered to build up the lawn.
I was discussing some bid job with another LCO. I was complaining about having to apply Roundup twice in the same season. He said he'd solved that, he just uses a sterilant! I said, when it finally leaches down to the tree roots it'll kill the tree. His answer was, "I thought you said it was a yearly contract".
With people out there with attitudes like that, I think these places that go for the very lowest bid aren't going to be too happy with the results.
Dave
humeco
02-21-2002, 06:58 AM
Originally posted by 2 man crew
Well I just got the news on one of the commercial properties I bid on for this year’s lawn care. Well the answer was NO. This was 5 medium sized commercial buildings and a 3-year contract. My bid came in at around $45,000 per season. So I asked the decision maker what was the reason I didn't get the bid. He said " well obviously price was part of the decision." So I said " well how much of a price difference was there" Thinking I might still have a shot.:rolleyes: He said the company that got the job came in at $18,000 per season! I was shocked. So I said "WOW that's low." He said " No kidding, they really came in with some good bids this year. I was surprised to see that myself". Then I asked him if they were the only ones that low, or were the other LCO's closer to my bid. He said "There were 2 others that had low bids but most were around yours." I did get one more tidbit out of him too. He told me Land Care USA was at $47,000. So that made me feel good about the whole thing. I know who the company is that got the bid. They have been doing these properties for a few years.
Maybe they know something I don't. All I can say is every thing works out for the best. Ya win some, ya lose some. But if your gona win some they better be at your price. ;)
GrassMaster
02-21-2002, 09:43 AM
Hello 2 man crew:
If it's a 3 year contract, don't worry it doesn't sound like they will be there long. :)
I had a Managers Son in Law beat me out on a $2,000 a month Property by LOL $5 a month, I had the Property already for 2 years. He was 1 man show, with Murray Rider, Crapsman Trimmer & Crapsman Hand Held Blower.
About 6 months later I was Riding by & Saw a Group of the Owners there Looking at Property. I talked to them, Showing them no Edging & No bush trimming. I also explained what Happened.
The Son in law was doing Painting & Cleaning apartments T00, all work was Son in Law Crappy from the Word go. The Manager got Fired, I got Contract back at $2,200 a month & a $2,000 Clean up Fee?
It's Hard to Handle at first but, Remember the Competition Keeps you in Business. Without them it's hard to get more money.
LOL, I wonder how that Joker Out Bid me by $5 a Month?
plow kid
02-21-2002, 07:01 PM
I currently have a bid in on a field mowing Job for our small::cough:: Neighborhood associaton::cough:: bid 2.25 acres cut every 2 weeks @ $115 a cut. nice little park, could knock it out in less then a hour with the John Deere. Turns out that a kid with a 30" snapper(forrest gump) rider mower told the treasurer $40 a cut!! I wanted it just for the fact that it was a cherry account, in and out quick and no trimming. oh well, easy come easy go~NaTe
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