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Old 03-29-2014, 12:18 AM
PenningsLandscaping PenningsLandscaping is offline
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Join Date: Jul 2013
Location: New Jersey
Posts: 1,802
Originally Posted by TPendagast View Post

right here.

I call it the wet finger estimation method… lick your finger hold it out the window….. uh huh….$50! that's my bid.

Some of these guys try and site 'experience' and skill with 'eyeballing' but it truth they just make stuff up as they go along.

It's more than 50% of the industry.

And when someone comes along that underbids them they get their panties in a twist.

I saw a bid last year for 50 municipal properties.
My number was 57,000.
The winning bid was 50,000

There WERE bids for 44,000 and 48,000 but they were both deemed to be 'irresponsible'

Several of the other bids were 60k-64k
and ONE guy was 116k….Woah what? What did I miss????

That was 11 months ago.

I juuuuuust got to talk to that guy last week. "Hey man, what was up with your number?"

His answer?

I knew I wasn't going to get it, so I didn't spend any time on the bid, I threw a high number out there to make sure I didn't get in trouble, incase for some reason I DID get the bid…BUT what I REALLY wanted was the bid abstract, so I could see where EVERYONE ELSE's prices were at .

Sharp cookie this one.

Just because someone has a higher number, doesn't make it "the right number"

Just because someone has a lower number doesn't make them a lowballer.
If you are licking your finger out the window as you drive by a property at 20 mph and don't put a lot of thought into your price and don't know your numbers.
Someone with a sharp pencil deserves that work more than you.

If you know your numbers, and you put your bet number you could out there, and you STILL got beat… the dude could be operating his business out of grandmas garage.
Doesn;t make his operation "ILLEGAL"
he just has lower overhead than you.

I met this guy once who ran his whole lawn care business off his house boat.

75% of his customers were on an 11 mile long lake.
He could literally take his office and dock it at a customers house.

He kept trucks and equipment in employees driveways.

Dude had stupid low overhead.

nothing he was doing was illegal.
I'm not saying it was the right way to run a business, but it was also not the wrong way either.
I can't believe two bids were deemed irresponsible. Maybe they didn't have the right insurance? Or is it that the municipality just said there's no way they can do it for that little?

Here in nj from what I understand it's low bid wins no matter what, but they can simply choose to accept no bids, and afterward not accept bids from the lowest bidding company.

This happened when the district I work for wanted to outsource the buses and drivers. Two bids came in over current cost, one came in 400k under current cost.

They thankfully realized that this company's objective was to get them in contract, wait until the district had long let go of the drivers and sold off all it's assets before jacking up the prices to where the other companies were at.
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