ouch!! that hit below the belt

[Grass_Slayer]

earlier this year i won the bid on a new gas station here in town. it is a little less than 1/2 an acre but it is rough and has a large ditch that has to be cut with a trimmer. i bid $50 per cut. the company wanted it cut regularly so i do it every week.

they just told the manager of the store to tell me that they wnted the bill dropped down to $100 a month and still cut it regularly. this is a large corporation with a least 12 gas stations around middle and west tn. why cant they afford regular lawn maintenance??????????????????????????????????????????????

[Russo]

Doulbe trouble :

1. Big corp - always wants reduction year after year.

2. Gas station - usually a trash pile with akward turf areas.

Been there, dumped that.

As far as the potential for multiple accounts; then you could end up losing money on 12 jobs instead of just the one.

Don't you love it when they decide on a landscape budget and THEN find a contractor to fit it?


We get this **** in the Multifamily industry a lot , too. Big corp requests a 4% decrease in price from all vendors every freaken year. What nerve. Lately, a handfull of different ones each asked to pay for installation work over a three month period but have the work done right away. I believe these "oraganizations" and "companies" have meetings and share possible ways to cut costs at everyone elses expense. Perhaps every penny kept in their accounts for just 90 days more adds up to serious interest or something.



I didn't mean to ramble.....but you hit a nerve. I feel for you.

[lawnstudent]

Why not tell gas station your price is indexed to the price of gas. Weeky cut, trim & blow = 40 * price per gallon of gas. If they drop gas to $1.00 per gallon, you will drop your price to $40 per week. If gas moves up to $1.50 per gallon due to demand, you get $70.00 per week per cut due to peak demand for your services and increase in gas costs!

jim

[lawnstudent]

Or you could tell them that you met with your board to review your pricing and determined that you do need to adjust prices to remain profitable. So based on the advice of your board you must raise prices to $70.00 a week. Hey, this is out of your hands. You just have to do what the board advises. Don't you love big corps? Good luck.

jim

[smburgess]

I would explain to the manager that it sounds like "they" are trying to pay what they want for your services, however you'll meet them half-way and charge $50.00 percut on a bi-monthly basis. GOOD LUCK...

[Dennis E.]

I went thru that a couple years ago with a fast food place near-by.Had them for almost two years. Under corporate guidelines.
Was a nice account.
They franchised all the locations in our county. The guy that picked them up was a tight pocketed SOB. I had two locations and he wanted "more for less".
I walked.
The maintenance co. that picked up the business was HORRIBLE.
The two mngrs. that I had dealt with called me and wanted a "new" bid. They were fed up. The places looked awful.
I said "no thanks".

[DaBeerMan]

Hi Guys

I used to do some Apt complexes in our area... over about 2-3yrs this guy & his partners bought up some of the biggest ones I had.
They were actually pretty nice at 1st till they got control over the nicest one around here... things went downhill from there!

They called me in one day & tried to SET the prices for me... in failing that... they then took 1st one then another & gave them to some fly~by~night guys! Not that I didn't know what was going on or anything... I asked one of the managers how bad I was being underbid... found out it was actually only by a couple of bucks(LOL). At the end of the next season I sent in the new contract with a 20% increase(cause I no longer had a bunch in the same area & they were spread out more)... THEY FLIPPED OUT!!!

I dumped all the guys places & actually ended up getting another huge contract that more than made up for it... the contract came from the guys competition who always liked my work but felt I might be spread to thin to take them on :D

This guy always tried to hang over my head that he(they) owned a bunch of places & if I was to play ball with them I would always have plenty of work! The translation of that is "you will always have of work IF you do it for the price they want to pay". If that's not enuff money for the job... TUFF!

These guys ALWAYS think they are giving you something so you just stick to your guns & tell them that "YOU DO THIS FOR A LIVING AND YOU DON'T NEED THE PRACTICE". ;)

Cheers

[ADMowing]

AMEN Dabeerman!!! People tend to think we are a charity or something.

And Jim (lawnstudent) I think that your solution to this is completely on target!!!! It is EXACTLY what I would walk in to that man/woman's office and tell them. Ask our customers -- I'm not bashful!!! :D

A large part of our economy seems to be based on gas prices -- that includes YOUR business, Grass Slayer! I would make this point and make it VERY clearly to them. If they still don't want your services for what you are making now -- tell them to take a hike!

NO CUT FOR YOU!!! (I'm plagerizing someone else here, but I love this saying). :)

[MATTHEW]

Most budget managers are given an "allowable" number for certain expenses. They are rewarded with a portion of any amount of savings that they retain. They don't care about anything but the bonus. So stand your ground and say $50 is the bottom line.

[GreenQuest Lawn]

You bid on it but do not have a contract?

Any lawn I have to bid signs a season contract. The only exemptions I allow are for lawns that are billed for time spent. I do not go out and give a bid on these. The price is set for the season. If they want cheaper they can hire a new company next year.

[Grass_Slayer]

thanx for the input guys.

i love both of ur solutions lawnstudent especially the second one

i would so dearly love to tell them to kiss my A$$ right now but they still owe me some money for dirtwork and i cant get it till i send in my tax info and workmans comp info (no employees so i dont have any)

plus i need the money and the yard looks so sh_tty now that i dont care if i only mow it twice a month.

no contracts yet but i plan on at least 2 year contracts next year!!

ive had enough of this garbage!!!!!!!

[Grass_Slayer]

i forgot to mention that the reason the yard looks so bad, and i had to do some dirt work on it, is because a dozer service that owed them money on a gas bill was handed the job for free! they needed the work done and the dozer service needed their bill taken care of. you can picture in ur imagination how bad this looks.

2 circles of grass in front--half bermuda sod that isnt growing and half of a grass that is unknown to me

2 sides 20'x about 200'--dirt and the grass that i dont know very sparse in all areas

and a 50'x150' rectangle in back--part bermuda part anything that happens to be growing at the time and about a 30x30 chunk of sand mixed with gravel and nothing growing on it.

i despise mowing this yard. so twice a month may be better for me.

and we just put in a landscaping bid on it that includes seeding!!

sorry for the long post but this place really pi__es me off!!!!!!!!

[1grnlwn]

Gas stations. Here is a good one. Lost 5 stations and 1 truck stop this spring. They told me as I was unloading the equip to mow. I made a bundle 75/hr on truck stop and 60 /hr on stations. They were all **** trash and mud and more trash. New manager of course said he didn't know me, so he called someone else. Actually he was pissed last year because I would not wait 30 min after we finished mowing his store(smallest) with helper for him to come back from the bank to meet him. They pay cash. Somebody I went to school with we will call him (scrub) was buddies with a store mgr in other local. He called all other managers and found out prices and lowballed me. I called mgr big and asked why he didn't call to tell me to piss off. He lied and said he just found out yesterday. I called mgr of truck stop and he said yea the memos said you wouldn't be doing it. Memos? Yesterday? Rat! So I was told scrub was doing all the stores. I called mgr big and told him I knew who was doing their mowing and that they better have good insurance because these are dangerous locals and the stations may be liable. I also told him the IRS had called me and asked why I had no 1099 from the stations( Lie) , because I turn in all my income. (true)He started babling about calling the home office. I know I gave new mgr big something to think about that day. Anyway it was like 3 weeks before anyone mowed and It wasn't scrub. Ha. Ha HA. I saw scrub at another gas station the other day he wouldn't look at me. I wanted to say hey scrub, next time pick on someone a little dumber than you. I have plans to take his big bank, looks like **** they mow about every 4 days, a tgcl induced brown clipping special. sorry long!

Mark

[JR LeGer]

That is ridiculous.

I never reduce unless people are offering my company a sweet deal that includes more accounts that will allow for a single decrease without it causing problems.

This is what I find very annoying about the lawn maintenance business. I do not see this as much with our landscaping division, but do see it from time to time with unlicensed people underbidding and then we get to go rip it out and start over and the price doubles.

You must always consider your situation first, especially when someone asks you to reduce.

This is what you always have to look at:

Inflation-- (your money is worth a little less each year..that's why I do not invest in CD's). Lets say a company asks you to reduce 4% like the other post said. Well is it 4% or is it really 7% (if inflation is 3%)? It's 7%.

Workers compensation insurance (if you have employees)--goes up usually.

The seemingly rising cost of gasoline and products in general. It takes money to run a business. If you constantly decrease, then you are losing more than you think.

Ongoing professional fees like accounting or licensing fees or annual report fees, etc. You get the picture.

The point is that people have to run their organizations like they are total professionals and must take an approach that lets the customer know that you know what you are doing and they should be proud to have you or your company as their service provider. This is how I approach everything. Do not confuse confidence and professionalism with arrogance, though. Never seem cocky, just sure of yourself and abilities and services you can perform.

Obviously, there are exceptions to anything. If you have a monthly account that pays $20,000 and they kindly request you to reduce to $19,500, only a fool would tell them no...unless your only making $500 on it. Now, would you do it for $10,000--no.

They are asking you to reduce by half..tell them you cannot lose money and if you do that then you will be in fact losing. Reason with them and remain professional. I find that if you can get people to try to look at it from your position, usually something can be worked out.

You could also suggest that they sell you gasoline at half of the price per gallon or maybe let you fill up cans and your vehicle(s) for free in exchange. They will laugh you out of the place if you suggest something so absurd--but that's what they are asking you to do.

[MikeLT1Z28]

lawnstudent.. i love your way of thinking! :D

i've heard nothing but horror stories about gas station lots. think i'd stay clear of them personally.

[Grass_Slayer]

i went and bought gas there today, and their lawn is startin to get tall! but i already mowed it once this month so i guess ill just have to stretch it.

right now i could care less if they fired me from that job.:blob2:

[JasperStorm]

Why don't you show up with an ELECTRIC mower and work in a "NO DRILLING IN THE ARCTIC WILDLIFE REFUGE" t-shirt?

[LawnMagic]

I used to mow an Marathon Station it was basically a hole in the wall the place had humps, dips,glass plastic ,an garbage every where then he didn't want me to do it on a regular basis so i put fertilizer down i had layin around 2 years old and i grew like crazy for awhile . but all he wanted to give was $5.00 in gas last year he gave me free food and gas so i got paid 30-40 $ at their prices . i still do it occasionally when i need gas and don't want to spend cash it take 10 min and then trimming but nomatter what it still looks like shi#
The owner was a Tight pocketed arab who wanted something for nothing

happy Mowing Phil