Register free!

The Green Industry's Resource Center



Reply
 
Thread Tools   Display Modes
  #1  
Old 03-24-2012, 01:23 AM
Mahoney3223's Avatar
Mahoney3223 Mahoney3223 is offline
LawnSite Senior Member
 
Join Date: Mar 2009
Location: midwest
Posts: 992
2012=Year of the Lowball

I stand corrected I thought 2010 was awful. Some of you might remember the thread I started that year that was shut down after 30k views and all sorts of hot issues. Well it must be something about years with gas at 4.00 in the Spring that makes companies bid work for wages instead of profit. Latest example, 40 acre mfg plant. with adjoining building r&d plant goes for .................................................................................................... ......................................$500 (with a half mile creek that needs trimmed weekly on both sides. Let the debates begin. I personally think this company is hilarious. What are you guys seeing in your markets? Here, I have abandoned any hope of landing and big complexes as the giant LCO's have them so dirt cheap it's not worth it. I entered a different market and business is good here. Intelligent discussion encouraged.
Reply With Quote
  #2  
Old 03-24-2012, 01:43 AM
Snyder's Lawn Inc's Avatar
Snyder's Lawn Inc Snyder's Lawn Inc is offline
LawnSite Gold Member
 
Join Date: Feb 2011
Location: Kirksville Mo
Posts: 3,715
Its not realy lowballing its keeping Employes working
Its like buying a new truck I go to city and I can buy from big dealer and get one cheaper then buying one from a small dealer
Big dealer looks at the numbers per month vs small dealer looks at the number per day

I do a 60 acre school and I can drop 7 mowers and pull out in few hrs compare to others that only has 2 mowers and they are there all day or 2 days

Some LCO makes there money on the extra work the mowing is a way to get a foot in the door

Some say Im a lowballer and sometimes I am on mowing I see alot extra work I'll low ball to get in the door

80% of LCO here only do mowing

I'm a full service Company
Reply With Quote
  #3  
Old 03-24-2012, 03:02 AM
weeze's Avatar
weeze weeze is offline
LawnSite Fanatic
 
Join Date: Apr 2011
Location: weezertonfieldville, AL
Posts: 5,405
40acres for $500? 1/2 mile of trimming a creek?

when i worked for another company we did a job for a plant that was about 10 acres. we made $1000 a cut on it. this was back in 1998.
__________________
Reply With Quote
  #4  
Old 03-24-2012, 06:26 AM
themadcutter themadcutter is offline
LawnSite Senior Member
 
Join Date: Nov 2010
Location: florida
Posts: 898
I never get involved in anything that large so this is a little out of my field. I stick with residential and small commercial.

I thought low balling was bad in that area. the price you just mentioned seems impossible to make money at.

At first glance.

If you have the right equipment and figure a total of 12 man/machine hours per cut, wether it was one guy spending a long day with 1 72" mower and a 40cc trimmer or a group of men
the gross would be $41 per hour.

At 10 hours it would be $50 (have to be owner operator for this time) and you would still be running equipment to make about 60% of some ac techs billing

Not much money, and I wouldn't do it unless I was loosing my house, but you would at least meet payroll for a while. Off course if you kept it up for more than 2 years you would just be destroying equipment and wouldn't have the money to replace it.

so if one owner had 50 of these accounts and only expected 2% and nothing went wrong he could get $500 a year. and he would be lucky to get that after all the expenses

I don't think thats how mitt romney got rich. It might have worked for scrooge mc duck
Reply With Quote
  #5  
Old 03-24-2012, 08:45 AM
shovelracer shovelracer is offline
LawnSite Silver Member
 
Join Date: Sep 2004
Location: North Jersey
Posts: 2,009
There has been an unusually large number of startups this year, but I think the warm weather has helped bring them out early. The part that frustrates me is that we are bound to all sorts of rules and regulations by our licensing boards and such. Meanwhile these guys have no problem littering the area with flyers. We had one guy put up so many plow ad signs on stop signs and poles that it sparked a front page newspaper article. We are talking 100's of signs in a few square miles.

In the real world my customers are not concerned with these types, but there is always a handful that all of a sudden think you are overpriced because someone is willing to work below cost. I am more than happy to let them go. The part that I get upset about is when we get calls from people expecting us to drive over just so they can check that the new guy is giving them a good price. I've been asked to leave more properties in the last two years than all others combined. Much like the class system in our country the difference between start up and established companies keeps getting further apart.
Reply With Quote
  #6  
Old 03-24-2012, 10:01 AM
airsoft1779's Avatar
airsoft1779 airsoft1779 is offline
LawnSite Member
 
Join Date: Apr 2010
Location: Greenville, SC
Posts: 152
Just wait till the heat arrives in july or so and a majority of them will be gone.. happens every season.
Reply With Quote
  #7  
Old 03-24-2012, 10:35 AM
KrayzKajun's Avatar
KrayzKajun KrayzKajun is offline
LawnSite Fanatic
 
Join Date: Oct 2006
Location: Harvey,LA
Posts: 10,426
Quote:
Originally Posted by airsoft1779 View Post
Just wait till the heat arrives in july or so and a majority of them will be gone.. happens every season.
Bingo!!! Most here aren't even starting up becuz we have been in the 80s the past week. I've noticed here people are finally willing to pay a premium price for good service
Posted via Mobile Device
Reply With Quote
  #8  
Old 03-24-2012, 10:40 AM
Snyder's Lawn Inc's Avatar
Snyder's Lawn Inc Snyder's Lawn Inc is offline
LawnSite Gold Member
 
Join Date: Feb 2011
Location: Kirksville Mo
Posts: 3,715
Quote:
Originally Posted by JasonsLawnCare1 View Post
40acres for $500? 1/2 mile of trimming a creek?

when i worked for another company we did a job for a plant that was about 10 acres. we made $1000 a cut on it. this was back in 1998.
Back in the 80s and 90s made good money to but I had slower mowers and didnt have 72'' just 50-60'' ones
Then there was maybe 2-3 LCO here Now in my area there is 19 that I know off
plus in my area there isa company that is a non profit company they bid pennies on the dollar Federal funded they work the mental handicap

People pay taxes pays them to mow
__________________
Snyder's New Lawn Service Inc.
Since 1981
Reply With Quote
  #9  
Old 03-24-2012, 11:29 AM
McG_Landscaping's Avatar
McG_Landscaping McG_Landscaping is offline
LawnSite Fanatic
 
Join Date: Feb 2011
Location: Pittsburgh PA
Posts: 14,812
that sucks about how badly that was lowballed but its all part of the business. deal with it. in our area there is a ton of work and there has to be 100+ companies and stuff does get low balled, but there is still good paying work. just this past week i picked up 5 yards. and people say theres no work out there
__________________
2008 F250 Superduty - EZ Dumper
2008 F250 Superduty - EZ Dumper
2003 F350 Superduty
1999 F350 Superduty
2002 6x12 Single Axle Landscaping Trailer
1998 6.5x16 Landscape trailer
2013 7x16 Quality Equipment Trailer
1994 5x8 Lone Wolf Trailer

Exmark, Snapper, Ferris, Encore, Billy Goat, Honda, Echo, Stihl, Husky, and Ryan

http://lawnsite.com/showthread.php?t=344647
http://www.mcginnlandscaping.com
http://www.facebook.com/#!/pages/McG...30091293747444
Reply With Quote
  #10  
Old 03-24-2012, 12:03 PM
WHIPPLE5.7's Avatar
WHIPPLE5.7 WHIPPLE5.7 is offline
LawnSite Senior Member
 
Join Date: Mar 2007
Location: Northwest
Posts: 955
Back when I first got on Lawnsite all the supposed pro's said any LCO has to make $50 hourly minimum. I tried to live by that for a few years and then realized not everyone can be the same. I'm solo with a 36 WB and a 21", no work comp since my state contractor exemption covers it, nothing borrowed from the bank, no huge diesel truck pulling a 26 enclosed full of Walker mowers. Just to come out and say $50 hourly is what any LCO needs to make is BS. We all have differant expenses and operating cost. Here is the way I look at it. If you are covering your cost and making something for yourself too might as well do it. My business suffered greatly from the start because I believed the nonsense on the website and failed to get many jobs because I tried to play the $50 an hour game. Considering everything I own is paid for I could make $38-40 hourly and come out nicely. Don't get me wrong there are total dumbass lowballers out there. I'm seeing guys offering $50 any size yard for powerraking, thats just ******ed. Most yards around here are 2,500,-4,000 sq. ft. so I mow them for $25 or so. Alittle bigger the goes to $30 or $35. Back when I first got one here in 2007 it seemed like everyone was saying don't even drop your gate for less than $40. Why, a 2,500 sq. ft. takes me like 15 minutes to mow, trim, and blow. Seems worth $25 to me.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 01:16 PM.

Page generated in 0.07440 seconds with 10 queries