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Low balling the compotition !!!!

Discussion in 'Lawn Mowing' started by Keiths lawn service, Jun 20, 2005.

  1. Keiths lawn service

    Keiths lawn service LawnSite Member
    from Chicago
    Posts: 3

    I have been out quoting against the big guys. Most customers are happy with the current service. Should I low ball them to get the work ?? Its still about $50 and hour per man on the job....
  2. A+ Lawncare

    A+ Lawncare LawnSite Senior Member
    Posts: 503

    its not called low balling, if you can operate efficiently and legit/legal... sure your "low balling" b/c your beating up the other guys price, but if its all legal and legit then your fine.

    the only problem i see w/lowballing is "scrubs" the 1s who don't operate legal & legit...

    your probably just lowballing a lil bit, b/c your mowing rigs isn't as much, other known as overhead being less than the lco down the street.
  3. Flex-Deck

    Flex-Deck LawnSite Silver Member
    Posts: 2,846

    What is the definition of Low Balling (No insurance - Don't pay workmans comp, Cheat the government and the society we live in - take cash and don't report it) - I am insured, legit, have a sales tax #, a federal id # etc. I bid to make money - I happen to have very efficient equipment, and what really happens is my customers save a bit and I make a bunch compared to the other LCO's.

    PS. all you ignorants that do not believe me, and are tired of these posts, just put me on your ignore list. Thanks Brad
  4. Keiths lawn service

    Keiths lawn service LawnSite Member
    from Chicago
    Posts: 3

    I am legit tax ID, insurane,pay taxes etc. I have no over head, everything I have is paid for in full, No loans, yard storage, building rent, etc. I have zero overhead. I pay my guys by company checks and 1099 them at the end of the season. They are all classed as self employed. Im coming in 3-5 thousand less then the nearest guys so far. But these are 15-20 thousand dollar contracts. I am still making good money on the job...
  5. Pro-Scapes

    Pro-Scapes LawnSite Platinum Member
    Posts: 4,181

    If you pull out of the shop your overhead isnt ZERO. Alot of guys think this but your still putting wear on your equipment that will need to be replaced on day. Maintenance. service...consumables like oil and blades and belts. All overhead. Your still sending money out the door. Insurance (if you have it) licensing fees is all overhead. Judging just by my own expenses my truck and mowers are only a small part of the overhead picture. Yes they are all paid for but I still have overhead. It's lower than alot of guys but its still there.
  6. qps

    qps LawnSite Bronze Member
    from Indy
    Posts: 1,484

    Your employees can't be 1099 self employed if they are using any of your equipment. people do this all the time and cry when the IRS comes after you for all those back taxes, this is just a "way" of not having work comp Insurance and payroll liabilities.... :rolleyes:
  7. br549oicu8

    br549oicu8 LawnSite Bronze Member
    Posts: 1,230

    Right on the money!! If they work for you ...the work for you!!!
    Do it right and pay the taxes, insurance, etc........
    10-99's like you are doing is not legal.
  8. BCSteel

    BCSteel LawnSite Senior Member
    Posts: 876

    The only way you can have zero overhead is if you work for someone else. Everything, every piece of equipment and anything that you need to make a buck in your business is all overhead. Unless all of your equipment consists of perpetual motion machines, they will need to be replaced, repaired and maintained. I repeat, you do not have zero overhead, what you dont have is any idea of how to calculate your overhead.
  9. ercrvs24

    ercrvs24 LawnSite Member
    Posts: 93

    I don't have any helpers, so I don't know the tax rules for independent contractors. But, my wife is a real estate agent, and 1099s. All the agents use the company computers, printers, copiers, the name, have keys to the office, etc... How do these HUGE real estate companies get away with not paying workers comp, etc. if that's cheating the government?
  10. Yamahauler

    Yamahauler LawnSite Member
    Posts: 20

    How many of your guys are getting into tax problems at the end of year.

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