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Old 02-21-2012, 10:48 PM
keithslawnc keithslawnc is offline
LawnSite Member
Join Date: Feb 2010
Location: Ocala,Fl
Posts: 199
Originally Posted by unkownfl View Post
I wasn't going to get in depth with my response, but I will since you asked. Valley Crest and Brickman are way larger companies. Just because they're large doesn't mean they can conduct business at a lower rate than you or I. They may only net 2-4% of their gross but when its 200million a year or whatever it's still good money. If you can't compete then you have no business bidding on those properties. If you want to net 20-70% like on residential properties then you have no business bidding on commercial because it's apples to oranges. I use to make 8% profit on the local Walmarts I had with USM. I was undercut by a bunch I could have still broke even but I decided I wanted out of commercial as I was just growing to fast and trading off to much net. I rather grow my business slower as I'm still pretty young and trade off less net for growth as I have a ton of personal bills. By saying breaking even this would be after paying myself a salary to conduct the work just nothing going towards my companies profit. I wasn't setup for the work and could have cut my cost a ton with different equipment and another employee. Those companies have shops, offices, storage yards, office employees, HR, managers, board of directors, brand new equipment, benefits, and tons of other employees. Most of that the common LCO isn't going to have. If you can't do the volume you won't make any money. The difference is businessmen run those companies and yard guys run most of the LCO that complain about the bigger companies.
I understand where you are coming from but these were bids that were local hoa's or businesses that 4 out of 5 I had some type of personal relationship with someone involved with bid. Two of the bids had very specific bid outline that is not being followed by the bigger companies. I have no intentions of trying to operate at a very low profit, for a business my size it would be to tuff to manage cash flow. I guess why they bother me is because the small and medium companies that are ran by the " yard guys" had my service area to ourselves until a few years ago. Point is the market in my area is not that great and continues to get worse as like many other areas in Florida.
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