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"20% under last years bid"

Discussion in 'Lawn Mowing' started by greenscapes inc., Nov 15, 2006.

  1. greenscapes inc.

    greenscapes inc. LawnSite Member
    from Utah
    Posts: 137

    Today I had a property manager call me to let me know another company came around to give bids. There approach was " I will do the landscape maint for %20 less than last years bid." To top it off they are located 100 miles south of my area. Why do people do that?? I work my butt of to get the accounts I have and never once have I taken the easy way out. No one can make money driving 100 miles away and doing for %20 less.
    What do you guys think of this. Personally I think its B.S. I have a great relationship with the property manager and She told them that they are not interested. It just bothers me that companies work that way.
  2. huh

    huh LawnSite Senior Member
    from Lubbock
    Posts: 251

    well there are 2 possible outcomes.....they come along and pull it off (which I doubt)

    or they come along screw the pooch and leave and make professionals look that much more valuable....the important things are to see that the manager you work with has learned this lesson....and those that have not are of little value as long term clients until they learn it as well :)

    sounds like you are taking care of business :)
  3. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    It might be a large outfit looking to fill the rest of a day to justify the trip up for their main job. There is a large outfit out of Detroit that comes up here and does the same thing. If he is going to have a truck come up (large 4 door that carries 6 to 8 Hispanics) he would just assume pack more work into the trip to cover the road time. I believe he keeps these guys in town all day so they are driving after dark- rather than during workable hours.
  4. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,204

    This is how a property manager sets the wheels in place to avoid getting a price increase. Happens ALL the time on commericial properties.
  5. kmann

    kmann LawnSite Senior Member
    Posts: 298

    I do believe we have a winner here. I've had Residental customers try the same approach.
  6. greenscapes inc.

    greenscapes inc. LawnSite Member
    from Utah
    Posts: 137

    Sorry but I had already signed the contract with Her the first of November. I'm sure some property managers do that to avoid price increase but not in this case.
  7. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,204

    So why do you think your friendly property manager told you about the low bid...I give?
  8. greenscapes inc.

    greenscapes inc. LawnSite Member
    from Utah
    Posts: 137

    I have had the contract with her for years and we are good friends... She warned me so that if I didn't have my other contracts signed to do so. She showed me their card and bid proposal. All I'm saying is I don't like there approach. If they want to do quality work and do it better then me, great. If I'm not doing a good job then I don't deserve to keep the contract, but I don't think its right for me or any other company to loose a contract to " I will do it 20% cheaper than last year."
  9. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    I was just reading this article concerning contracts and low bids.

    No, wait: Government contracts, the King of low bids.

    Did you know...
    - A higher than average number of companies fulfilling these contracts are later either caught for tax evasion or audited by the IRS for basically that reason?

    Yes, yes...
    Good times.

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