To do lunch or not

[pasto_guy]

Just wanted to know if any of you take a potential client to lunch prior to bid process. I've got an opportunity to bid on 64 bank locations and need some help from you guys. How would you approach it and what would you do. Here's the thing, I used to mow about 25 of these banks two years ago. I didn't have the master contract, I was a sub for someone else. Since then someone else has taken over the master contract and the bank has also merged with another and now has more locations. They were not dissatisfied with my services, but they switched due to price. The bank rep contacted my friend who used to have the master and asked if he would like to bid the properties this year. He said no because he is into other things now, but he talked me up real good and gave him my number. So here we are. I have all of the old contract info from my friend who held the master contract. He also has the price of the current contract of the 25 banks. I don't know how he got it but he did. So the new bid will include other banks that were acquired through the merger, some of which are outside of our area but can be subbed out. Please help me out, this is the potential big break that our company needs. Thanks in advance

[Fiano Landscapes]

Sounds like a complicated situation. I would handle this differtly depending on your current business situation. First off I personally don't beleive in using subcontractors on a scale of this size. You have to little control of the situation when your subbing out the majority of the work. Say something happens to the other company(divorce, bankruptcy, partner split, poor business management, etc.). Your the one that suffers greatly from this potental problem. It sounds to me like you biting off way more than you can chew. Think of a business as a crock pot, not a microwave. Crock pots can definately make you impacient, but boy they produce great results. Don't take a leap of faith this large, it could result in you losing everything. Also the reason that most contracts like this are lost in this manner are because the owner of the contract is making profit while the sub of the contract is also making money. So when the bank in your situation receives other bids, they are lower than you because there aren't as many hands in the pot. Hope this helps you!

[pasto_guy]

I see what you are saying but some of the properties are 180 miles away. I would think that any LCO would have to sub out some of these. I'm only bidding against two companies. Both of these are located in my area, so they would have to sub them also.

[Fiano Landscapes]

Don't make your decisions based on other company's decisions. Whos to say their not biting off to much as well. Also banks are some of the smartest people in the world, that is why their buildings are the biggest ones in most cities. They know that they can save more money on their maintenance, if they hire a contractor that is close to their properties. I use to service 32 Circle K gas stations around the Indianapolis area. After the first year of the contract they wanted me to agree to a set price for each location. I couldn't do so because some of the stations were 70 miles from our shop. We would have had to lose money to services their properties. Remember their in the business of making money too.

[ICS]

Good advice FIANO, If you do decide to bid I would take your contact out to lunch and see what information he may talk about. Whenever you start bidding on projects on the next level it does not hurt to take everything else to the next level. Taking clients or potential clients out to lunch is the norm in most industries. I am sure that your suppliers offer to take you out to lunch or other perks since they appreciate your busine$$.

Good Luck

[Two Seasons]

Pasto:

I'd take them to lunch, but first things first. How wide is your service area? How many employees do you currently employ? What is your current fleet size? How old is your equipment? Are these properties primarily 48" or less type equipment needs? Do you have current financial capital to make things happen should you be awarded the contract? When do you have to present your bid?

Please answer those questions so we can help you make a better, informed decision.

[pasto_guy]

we currently service about a 65 mile radius. we have 10 employees and usually set that into two man crews for smaller property days and 4 man crews for larger property days. As far as the equipment we have two trucks and trailers that don't get utilized that often. We have new machines every two years and one back up for every two like machines and small handheld equip. We are ready for growth. I have a great relationship with the people within the bank in question and also have a credit line at my disposal but have yet to need it. Most of the properties are 52" and smaller with some branches needing ztr's. I was hoping that all of you guys weren't going to tell me not to bid. i know that I asked for advise and I do appreciate all advice given even if it is not to my liking or what I had hoped to hear.

[Lawnworks]

Sounds like you want to grow. I would do it. Take him out to lunch. It sounds like you will not have to make much of an investment in more equipment/trucks. As far as subbing it out... like you said... somebody is going to have to sub it out... might as well be you. I would just bid it at the hourly rate you need to make money... and submit your bid.

[Robertsonslawnsinc]

Don't listen to these guys saying not to bid..Bid it ! MAKE IT HAPPEN ! I understand not biding somthing if your not ready for it . But if you think you can and you want your company to grow. Go for it stretch yourself
and take him/her out to lunch show them you want the job and you want to work with them. But don't come across as this contract will make you or break you.
You want them to see that your company is busy. and that you would love to take them on but you are already successful.
As I am sure you are with 10 employees
But thats just my thoughts

[DLAWNS]

I would first decide if it is something that you can handle. Then if you think you can....go all out. Take them to lunch and get all the info.

[KS_Grasscutter]

I'd bid it. Yea, you may lose money on the farther away accounts, but make up for it on the close ones. I'd almost set up a separate rig, with a 2 man crew just for that account. Try to pick up a couple more accounts near the farther away ones, to make the trip more worth it.

[HOOLIE]

Definitely do lunch. If you were the bank manager, you'd probably remember the guy that took you out to lunch for some face-to-face time vs. the other 2 bidders. Never hurts.

Are you breaking the bid down bank by bank? Or just submitting one lump proposal for all of them? With something like this, I think you have to not get so hung up on making great profit on each bank, just look at the overall profit you're making in total. I'd plan on subbing out the far away jobs and just leave it at that. Setting up a 2nd location would be costly and still, it's not like you would be there in person anyway.

Overall I think lunch is a great idea.

[Gene $immons]

It won't hurt to do lunch. How can they honestly expect you to drive over 180 miles for a job? :dizzy:

[Robertsonslawnsinc]

guys 180 miles is far but theres companys that do it all the time its not unheard of .

[jkranium]

[QUOTE=Fiano Landscapes;2681950]Don't make your decisions based on other company's decisions. Whos to say their not biting off to much as well. Also banks are some of the smartest people in the world, that is why their buildings are the biggest ones in most cities.


???Have you been watching the news the past several months??? If they were so smart they wouldn't have gotten themselves into this situation.

[Fiano Landscapes]

Listening to the tv, and actually knowing why they were having problems are totally different things. They have marketed themselves so well to us that,we line up to borrow money from them. Wouldn't you love to show up at your shop and see a line of people standing their begging to have you sell them something. That is what happens at banks everyday. The stupid consumer lines up and deposit money into their banks, then borrow it back at 10%-30% on a credit card. If you don't think this is smart I don't know what to tell you. Ask any good financial person you"ll see!

[lifetree]

I would first decide if it is something that you can handle. Then if you think you can....go all out. Take them to lunch and get all the info.

For professional business accounts like this, it would be customary to take the potential client to lunch.

[Lawnworks]

For professional business accounts like this, it would be customary to take the potential client to lunch.

So says the fifteen year-old!!!

[sgallaher]

I agree, defiantly do lunch. Just make sure that the travel time/distance is worked into your price. 180 miles is doable. You'll just have to work the scheduling extremely well to get the best time.

[pasto_guy]

Hey guys I really appreciate all of your input. I've got two big apartment complexes that I currently serve that have other locations in a big city that 8 of the banks are in. I've got a great relationship with the regional manager and have thought about trying to get these accounts if the bank deal works out. I'll keep all of you posted as to how this turns out. Probably looking at doing lunch within the next two weeks as they should have the bid packet ready around that time. Thanks again for your help and support.