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  #21  
Old 10-25-2013, 10:06 AM
ducnut ducnut is offline
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Quote:
Originally Posted by MOturkey View Post
That said, I'm just a little guy, relatively speaking, but I honestly don't understand why smaller operators are so fixated on getting into commercial work. I currently have a half dozen or so "commercial" accounts. I have serviced each of them for as long as 10 years. None of them ask for yearly bids, and most have accepted reasonable price raises over time with no complaints.

I also, in the past, have had a few that insisted on yearly bids. I no longer service any of these properties, and after losing the last one over $5, I decided I would no longer bid on any job that is going to require annual bidding. Thanks, but no thanks. I feel that if you are reasonable in your pricing, dependable, and do good work, you should be able to keep the account without having to worry someone undercutting you with an insanely low bid. If LCO's would quit playing the game with these people, things could be much more profitable.
Agreed.

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Originally Posted by MOturkey View Post
If I am reading those school bids correctly, there is absolutely no possible way the guy is doing anything but losing money, and, the way I figure things, quite a bit of money.
Quote:
Originally Posted by PenningsLandscaping View Post
And yeah, the bids on the school district are insane. I can't imagine that even covering gas.
I'm curious to see if the guy who has all but 2 of those ends up bidding for '14. I'm guessing he will have learned his lesson.
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  #22  
Old 10-25-2013, 11:35 AM
herler herler is offline
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Quote:
Originally Posted by MOturkey View Post
If LCO's would quit playing the game with these people, things could be much more profitable.
If those folks weren't staying busy playing their games, they'd be taking up time breathing down your neck.

Believe me, I even tried once through a concerned and positive campaign to end the games. I thought I had hit the nail on the head by offering a fair trade in ways of hourly work for money and a mutual understanding of my costs in exchange for their expectations and I thought I had it all worked out and things were looking up but you know what, it didn't work. Instead they'd tie up my telephone with endless questions, that or they'd hit me up with the crazy bullshit when I got there, right when I thought we had an understanding the whole thing got turned around on me and I was facing the entire rigmarole as if nothing had ever been said or accomplished, this went on for some time until one day I totally understood why the games exist and why they must continue.

In summary, different folks, different strokes.
So you and I, we'll just do our own thing and let them do theirs.
But I do agree, I never quite understood the whole thing either.

Last edited by herler; 10-25-2013 at 11:43 AM.
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  #23  
Old 10-25-2013, 11:48 AM
PenningsLandscaping PenningsLandscaping is offline
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Quote:
Originally Posted by ducnut View Post
Agreed.





I'm curious to see if the guy who has all but 2 of those ends up bidding for '14. I'm guessing he will have learned his lesson.
I doubt it. That small government contract game is insane, they skate by cutting corners like you wouldn't believe. We had some steps replaced at my building and the "masons" who bid on it never bothered to inform anyone about the obvious building code violations their repairs would create. I ended up having to tell the head of maintenance about the lawsuit waiting to happen. Then what happens? They get a new bid on fixing it. Quick money, no brains.
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  #24  
Old 10-26-2013, 03:12 AM
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TPendagast TPendagast is offline
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This stuff is always hearsay.
I bid a municipal job that had spots ALL over town this year... I KNEW I could do this job for 49k per season (it's a three year renewable contract) but the Senior partner wouldnt let the bid go in for less than 54k.
Winning bid was 50k.
When I went into this bidding process I heard ALL about how LOW this bid went for last time, and how RIDICULOUS it was how LOW it went for and it couldn't POSSIBLY be done ANY lower.
I had NO idea what that price really was. So it never affected my pricing strategy.

Of all the guys who complained how LOW the price had gone for, the three biggest complainers had pricing for the SAME contract that were 189k, 90k and 75k.
Ummm are you guys looking at the same contract?
MOST of us were between 50k and 60k with one blooper at 35k (who was determined to be a non responsive bidder)
so, really 189k? for 50-60k of work... "oh no...all these LOW ballers in town!"
note that none of us knew each other, and this was my very first time doing a bid for this municipality and four of us were in 1% price difference from each other and one guy and I had a season contract price $14 apart.

So "rumors" about how low a contract is going for is just that.

The SAME guy got this one, who had it for the THREE previous years, he hasnt gone out of business, in fact his price THIS year was lower than his bad LAST time (he under bid himself!)

Same thing happened to me on a snow bid with Lowes, rumor is I did a snow contract for $5300 for the whole season.... no, it was $5300 per month, per store and there are multiple stores (with extras)... rumors are rumors.
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  #25  
Old 10-26-2013, 10:35 AM
ducnut ducnut is offline
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Quote:
Originally Posted by TPendagast View Post
This stuff is always hearsay.
The way I eliminate hearsay is to carry proof. I carry a file with certain things I frequently get asked about. The aforementioned school bid info comes in a packet. They give you the current and previous year bids, along with the requirements. A couple standouts are 26 week season with mowing every week and height never to exceed 4". The winning bidders HAVE TO mow every week. I have both year's bids amortized, so one can easily see what the weekly revenue will be on each property. I was speaking to a landscape contractor, who sits on the school board, last night. He can't believe what these guys are doing to the school district opportunity. No hearsay here, my friend.

BTW, Can't wait to get back up to your part of the world. Gorgeous place!
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  #26  
Old 11-01-2013, 08:37 PM
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unkownfl unkownfl is offline
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Quote:
Originally Posted by williams lcm View Post
A local lco picked up 13 McDonalds property's. I guess he got the winning bid of 20k per year. This sounds quite low since I think the previous guy was doing it for 25k. These are located in Florida. I would have passed on them.too much driving.
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That isn't bad at all. All of the store here are less work than most yards and you're luck to get 15-20 a visit on a reoccurring.
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