Lowballer was busted

Discussion in 'Lawn Mowing' started by Snyder's Lawn Inc, Aug 7, 2014.

  1. Snyder's Lawn Inc

    Snyder's Lawn Inc LawnSite Platinum Member
    Posts: 4,541

    Well I got a phone call today asking me take back a 14 yr account I lost this spring I said sure if they sign a 3 year contact

    In the contact you need WC but if you sign that your a SOLO you don't need WC Well this Company signed it Says he is a Solo company

    In Missouri its not required if you have less then 5 employees But with this contact you need it even if you have 2 employees Its there requirements

    This company always target places the don't require WC.
    Since he falsified the contact think he could get in trouble

    When I was out bided on this. I was told he was half my price. I knew it wouldnt last long and lawn shows it full of weeds parking lot dirty. I know one time I seen them mow it and left never trimmed or done a clean up First of july we had bad storm limbs down and those same limbs are still there in same place since 1st of July.

    In the bid its required to mow/trim pull weeds out the beds and clean up each visit and for that takes time so it takes dollars.

    In the past to mow and trim takes about 45 mins but after walking the beds and picking stuff up takes another 30mins this was with a 3 man crew.


    So Im bouncing off the walls with joy I got my baby back for more money and 3 year contact

    But I have work cut out for me Start off full bed cleaning, Spray the lawn and fix part of the lawn that got a fungus in it and it was never was treated
     
  2. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    There will always be people that think that they can overcome low to no profit pricing with volume. This is my 21st year doing this and my second company. Both companies are successful. I had a guy on Wednesday trying to convince me that the way to make money was to lower my pricing and go after a high volume of customers. I am the exact opposite. I try to maintain an excellent quality of work, a good mix of quality customers and charging more for service. BTW, this guy giving me advice lives in a 40 year old single wide trailer and doesn't even own a car. I'm told he hasn't had a real job in 20 years. His wife works really hard though.
     
  3. easy-lift guy

    easy-lift guy LawnSite Gold Member
    Posts: 3,376

    Congratulations. Hard work and being honest with your accounts does pay off in time. I wonder if someone will notify WC for your state or your old/reacquired customer?.
    easy-lift guy
     
  4. RussellB

    RussellB LawnSite Fanatic
    Posts: 6,145

    I wonder why the customer never requested the guys insurance carrier supply them with a copy of proof of insurance. Half price and no red flags went up. Something smells fishy.
     
  5. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Posts: 7,607

    "half price" can mean a lot of things.

    In this case the incumbent had been doing it along time.
    On a bid where lots of people are doing a bid, the apparent low might not be "half the price" so much as the apparent high is simply double the winning bid because they don't know what they heck they are doing.

    If Company A is going to do it with push mowers and company B is going to do it with 60" decksÂ…you're going to see a price difference.
     
  6. doobs41378

    doobs41378 LawnSite Member
    Posts: 184

    I believe it is because they signed up as solo which meant they did not need it but in fact they were not solo so they lied to get the contract...I think.
     
  7. bel-nor

    bel-nor LawnSite Member
    Posts: 194

    This is good to hear, I hope you continue with your luck and good work ethics. A schol disrict hear let five schools out to bid one had a 13+ acre sports field. I bidded $1600+ per each five school event, with four other bidders in the same ballpark range and 2 much higher. The winning bid for a five school event was 500+. This required WC, reg liability, commercial vehicle coverage and everify. I didnt think twice maybe this bidder can do the work for that price, However the sports field for my bid was $700+. someone on hesr always says the worst part of the lowest bid is getting the job....half price means trouble!

    The season is winding down and its good to know someone lucked out against an inexperienced bidder...ok a lowballer. Use some of that extra money for a good 2014 Deer season hunt.
     
  8. easy-lift guy

    easy-lift guy LawnSite Gold Member
    Posts: 3,376

    I believe your missing the point of the OP. The company that secured the winning bid for a property that he had for 14 years not only did the job cheaper but did a really bad job, lied abouth having WC in place. The inexperience bidder that you mentioned was not and knew exactly what he was doing until he got caught and fired.
    easy-lift guy
     
  9. gcbailey

    gcbailey LawnSite Silver Member
    from WV
    Posts: 2,570

    At least the client had enough sense to realize the boat had sank and the life boats were still tied to the ship...
     
  10. grassmonkey0311

    grassmonkey0311 LawnSite Silver Member
    from MD/NC
    Posts: 2,254

    This goes to show you that your relationship doesn't mean squat. Nor does the amount of years mowed. You'll get kicked to the curb when a customer thinks they can save money.

    Glad to hear you got it back, hopefully the lowballer will lose a few more and offer a good deal on his equipment!
     

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