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Old 12-09-2012, 11:58 PM
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Herrick Herrick is offline
LawnSite Senior Member
Join Date: Jan 2007
Location: Metamora, Illinois
Posts: 506
Originally Posted by TriCityLawnCareLLC View Post
So, what's the bottom-line of your post?

One thing that stands out to me (and i may be wrong) is you saw some pretty big contracts, and estimated them based on you doing all the work- no problem other than what we think we can handle isn't always accurate. So in turn you came in way under what the other guys were doing the work for. I'm no going to throw the term "lowballing" out there because i think it's an ignorant term used to frequently but in essence you are doing the work cheaper. But, it does seem like you focused on the numbers and didn't anticipate for expenses.
I actually was $500 more per year than a large firm from out of town, but was given the opportunity to match them since I was local. Not so much of under bidding, as not being set up to do the work in the first place. If I hadn't had to go out and get more equipment, and was just paying $10/hr kids to do all the work, with plenty of labor to call on when things got busy, it would have been much better. Problem was I couldn't keep five guys busy outside of this account. I couldn't afford to get another truck, trailer, etc.... The business outgrew itself basically and I wasn't ready.
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