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Is this guy a lowballer?

Discussion in 'General Industry Discussions' started by LFD 1249, Nov 14, 2012.

  1. Sharps_lawn&landscaping

    Sharps_lawn&landscaping LawnSite Member
    from TN
    Posts: 83

    We mow one larger property with wide open areas. Estimated around 20 acres and it takes two guys almost six hours . It's priced 650 a week if it was bi weekly it would be double.
     
  2. Sean Adams

    Sean Adams LawnSite Gold Member
    Posts: 3,597

    A little more detail about the account and specs would be helpful, but in the end, this industry is coming down to price. I know people will disagree, but if push comes to shove and the potential customer sees things as apples to apples, all he/she/they have to go by is price.
     
  3. sealcutter

    sealcutter LawnSite Senior Member
    from PA.
    Posts: 256

    I argee with Sean, you have to know your market and that is not yours. I don't even bid properties like this for that reason. I can tell you I am not the cheapest but this last year was record breaker for us.
     
  4. LFD 1249

    LFD 1249 LawnSite Member
    Posts: 34

    Thanks guys! I agree maybe its to early to go after these big jobs. But if nothing else it was a learning experience for me. I think I'm going to stick with what I have already. I'm currently studying for my pesticide license and I'm going to concentrate on growing that side of my business. Maybe year 3 I will try to break into large commercial properties.

    Thanks for all of the advice.
    Posted via Mobile Device
     
  5. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,715

    To answer your original question, yes the other company lowballed the bid.
     
  6. LFD 1249

    LFD 1249 LawnSite Member
    Posts: 34

    I hope for the winning bidder that he has things figured out. If not he could have made a big mistake. Never know if he defaults on the contract I may get a call.
    Posted via Mobile Device
     
  7. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,715

    This happened recently to us. Five bidders, 3 were in the ballpark, one was sky high, and the other was around 15k short. Come to find out the owner had gone on vacation and let his foreman bid for him. The owner looked at what he bid on and was less than thrilled and asked to withdraw his bid. It happens, some guys can work with the bid and other guys can't wait to get out of it.
     
  8. jackal

    jackal LawnSite Senior Member
    Posts: 489

    Commercial jobs around me have been bid down so bad that they are no longer disireable.

    I know of one factory, 60 Ac open with no trimming $1200 a week.
     
  9. LFD 1249

    LFD 1249 LawnSite Member
    Posts: 34

    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. :)
    Posted via Mobile Device
     
  10. jackal

    jackal LawnSite Senior Member
    Posts: 489

    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.
     

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