How'd they do that

Discussion in 'Lawn Mowing' started by JBird, Mar 11, 2005.

  1. JBird

    JBird LawnSite Member
    Posts: 114

    Maybe I am venting here. I have spent the last several weeks talking and selling my customer service and companies workmanship to the Grounds Maintenance Manager at the new Delivery Hub for the east coast headquarters of a MAJOR shipping firm. The site is 105 acres. There is so much trim work it's pathetic and large open areas as far as you can see. Not one guardrail is located so you can get anything but a 30 inch push mower behind it and light poles, hydrants, truck slave stations, curbs and wow everything everywhere. Oh yea, I almost forgot the 15 ft. security chain link fence that runs the entire property. I figured three guys two days and that's busting hump. Some of my competitors blew me out of the water. US LAWNS and TRUE GREEN (turf dye) both bid 25,000 and 27,000 per year in that order....HOW? Based on 29 - 32 cuttings my labor and fuel is more than that, H*LL my foreman would have made half that from that job alone. Let alone W.C., Unemployment and a million in liability insurance. Some one some where please clue me in. I thought I had a handle on bidding but maybe I need to go back to school. Lord knows I just took a trip to the wood shed. :mad: :gunsfirin :confused: :eek:
     
  2. procut

    procut LawnSite Bronze Member
    Posts: 1,853

    Wow, not sure what to tell you. I guess those guys arn't making much.
     
  3. newleaflandscape

    newleaflandscape LawnSite Senior Member
    Posts: 348

    Not sure about maryland but here in michigan those two companies are very very effecient. They have the best equipment and get things done fast and with good quality. Which is why I dont do lawn mowing. No way to compete between them who do quality work for a reasonable price and the guys mowing for beer money that just get it done cheap. I wouldnt say one bad thing about them though. They have worked to get where they are and have done alot of research on how to run a large company and make money at it. Kudos to those guys, but ya it sucks for anyone who is trying to compete
     
  4. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205

    Why try to compete with those companies?
    They are strictly volume and work on economies of scale. It is impossible for a small business to compete with their pricing and why would you want to?
    Now quality.........that's a different matter.

    They'll be using a mexican workforce at a low dollar wage and quality is not a question.

    You didn't get sent to the woodshed, you just can't compete with the walmarts of lawnworld.

    By the way, not everybody shops at walmart...............Good thing too!
     
  5. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,305

    You got to keep in mind the extra stuff is where the money is made(i.e. irrigation repair, new landscape, fertilizing, weed control, etc. etc.). You said there is 105 acres but there surely can't be much more than 200K of grass correct?
     
  6. promower

    promower LawnSite Bronze Member
    Posts: 1,232

    I would say a 105 acre property would include a little more than 200K of grass :dizzy:
     
  7. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Posts: 408

    I'm just curious. What was the actual square footage of turf area?

    David
     
  8. captken

    captken LawnSite Bronze Member
    Posts: 1,707

    Some of us have the best equipment and get things done fast and with good quality. I do quality work for a reasonable price and I am not one of those quote guys mowing for beer money that just get it done cheap unquote...are you stereotyping us here? We work had to get where we are and have done a lot of research on how to run a company and make money at it...Kudos to us guys...and screw you! Maybe you were a low ball outfit working for beer money and beer screwed your mind up. Go on back to the landscape forum.
    kenneth leak...
     
  9. mottster

    mottster LawnSite Member
    Posts: 191

    We have a company in our area that is going around low balling all the contracts trying to squeeze us middle-sized companies out of the larger accounts that you need to really jump in size. This company will go into a property and tell them that they will beat their lowest bid by 10%. Time after time they keep picking up properties. Now this company did 8 million last year and they're still growing rapidly. But how can they be beating everything by 10%? They must lose tens if now hundreds of thousands of dollars of profit by doing this. Best solution we can come up with? The company is backed by many many many very wealthy people that have no problem dishing out thousands of dollars every year to let this company do business the way they do. Sucks for us guys that are getting close to 1 million in sales + but what can you do? Some of us are thinking about starting a union to try to regulate prices in the area. But we, at my LCO are beginning to look towards our own investors to help the loss of these properties. We lost 2 this year to this company, but we also gained 3 to replace those. But still, we can't grow very easily like this. Frustrating, yes it is. But its what you have to deal with when you play with the big dogs. Just remember....if these companies prices are too low for you ot match you have to sell the customer on your quality, customer service, and straight out brown-nosing ability. Eat or be Eaten.
     
  10. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205



    They are simply gaining market share by undercutting others.
    Once they own the market guess what happens to pricing?
     

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