Is this guy a lowballer?

[Patriot Services]

Originally Posted by jackal

That is not really what I consider lowballing. The lcos that mow factories have ins, pay workmans comp, and taxes. The guys that own the company dont do the labor and they make a small profit on their investment. You have to figure out if you can make a worthwhile profit at that rate.

Lowballers are guys that are not paying taxes, have no ins and pay employees in cash. They can do the same jobs that you do for half the money and still make the same profit.

I consider that full on scrubbery and criminal.
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[Kelly's Landscaping]

What you ought to do is stop by the place next year when its being serviced and see how the guy was able to blow your price out of the water. Don't be surprised if they are using 10ft 11ft or even 16 ft mowers.

[32vld]

Originally Posted by LFD 1249

I kinda get the same feeling around here also jackal. I've read alot about "lowballers" on here and even tho my first couple of jobs I was one. It didn't take me long to figure out I screwed up. I was kinda glad for the drought in my area. No more lowballing for me ! If its a break even bid I would rather stay home with the kids.
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Starting out and not charging enough for the first few jobs because a lack of experience is not being a low baller.

Almost everyone makes a few mistakes starting out in this business.

[Will P.C.]

Originally Posted by Kelly's Landscaping

What you ought to do is stop by the place next year when its being serviced and see how the guy was able to blow your price out of the water. Don't be surprised if they are using 10ft 11ft or even 16 ft mowers.

This is a good point. Different companies equal different sized fleets. Some companies are just better equipped to handle these large facilities. This means they most often can give a better price while using their large machines as a selling point. If you were a property manager, would you rather use someone with large 16ft mowers, or a guy with 2 54 inch mowers.

I agree that price is most often the biggest factor. However, a property manager needs to believe you will be able to handle 32 acres every week since it is his job to make sure the premises looks good. As a solo guy, what happens when your mower breaks, you get hurt, or your kids need you.
Large jobs are hard on equipment and time consuming. They always take longer than estimated.

Most guys will agree that it costs much more than 15/hr to run a business so you really need to plug in the numbers or talk to a financial adviser.

Successfully bidding large jobs is something that comes with time. There is no magic formula, and not much solid info on what ABCMOWS would charge for a specific property when he is on the other side of the US and has not walked the property.

Maybe you know someone that is in charge of lots land. Ask him what prices the bids came in at and compare it against what you would have asked. This will give you a gauge although far from perfect.
Go up to the property manager and ask him what his decisions were that lead him to pick someone else

[Duekster]

You have to know your market, your cost and your ability then develop a price model and stick to it. If you are costantly beat do not get to down because there is competition. Hold your own and deliver and you will develop a reputation.

I just won a bid where I was 30% higher but I won on a score card including reputation and quality. It took me 7 years to develop the reputation. Under promise, over deliver and stay confident in your services.

FWI - $15.00 an hour does not truck, mowers, small tools, gas and marine insurance. Then you have labor and buden
Then you have profit.

I too have seen $15.00 an acre but that is for rough cuts on ROWs not parks and sports fields.

[944own]

Originally Posted by LFD 1249

Thanks Wayne 55. I'm not really worried about losing this job. But I've got other bids to submit and in just second guessing myself. I agree with you I'm not going to bid on the work just to have it. If I can't make a profit then it's pointless to have the work. I'm going to submit my bids for next year as they are now. And if I get them then great, if not then I will be happy with what I have already.
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This is why you or me never get these jobs. You say it is pointless if you cant make money. The big companies will bid this low just to assure the crews have work. If they can sit in the office and make $50 profit they will do it. You or me want to make good money on this type of job. I work with me and 1 helper and I could never be competitive with the big guys price on this. Think about it, they can profit something regardless how small the profit and the guys get the hours. Its win win for them but for you or me it is BS. This is why I mainly just try to stick to residential. good luck and happy holidays