Lowballers

Discussion in 'Heavy Equipment & Pavement' started by icex, May 5, 2011.

  1. treemover

    treemover LawnSite Senior Member
    Posts: 404

    and it takes a lot years to get prices up. New guys get in at low prices and think it is the norm, then go even lower to get work. its a bad circle. keep your prices up
     
  2. stuvecorp

    stuvecorp LawnSite Fanatic
    Posts: 5,213

    I don't think right now fair matters as guys are just trying to hang on.
     
  3. icex

    icex LawnSite Senior Member
    from WV
    Posts: 389


    Well things aren't bad down here as far as economy wise. I just do this as a side business, although I would love to go full time but equipment don't move for no less.
     
  4. AWJ Services

    AWJ Services LawnSite Platinum Member
    from Ga
    Posts: 4,276

    Every buisness has different costs so it can be hard to judge other companies charges.

    There will always be competitors who come in very low and very high on bids. It will always be this way as long as there is competing buisnesses.
     
  5. AWJ Services

    AWJ Services LawnSite Platinum Member
    from Ga
    Posts: 4,276

    This a valid point.
    For example I purchased a new item for my excavator that allows us to do the same job in 30-40% less time. So I could now lower my prices 10% and still make the same profit as before.
     
  6. MOREDIRT

    MOREDIRT LawnSite Member
    Posts: 119

    If you are working by the hour you are not going to make it. It is funny watching all of these guys buying 50k+ skid steers and running them for 50-65 an hour. The only way these faster more productive machines pay off is when you are bidding work. If I worked by the hour I would have old slow equipment it's all the same to the home owner type customer.
    Posted via Mobile Device
     
  7. AWJ Services

    AWJ Services LawnSite Platinum Member
    from Ga
    Posts: 4,276

    If I was working by the hour I would sell my Takeuchi in get Case..........:dancing:

    I have worked in the past by the day or half day rates but I have worked by the hour only once that I can remember. I prefer to just bid jobs and I have found my profit margins are much higher this way.
     
  8. icex

    icex LawnSite Senior Member
    from WV
    Posts: 389

    It is better here in WV to bid it by the hour due to the large enormous rock that we encounter. I did a gas line job last year in the fall and estimated three hours to dig a 500ft 2ft deep trench, lay the line and cover it up and it took 6 hours total to do it due to the rock, so if I would of bid for 3 hours I would of went in the hole.


    This current job I am on is nothing but rock. They got it all hauled in from a creek so it is like concrete trying to deal with it were it has sat so long.



    Moredirt, I diden't just go buy a $50k machine. This one was used and is already paid off.
     
  9. raschmid07

    raschmid07 LawnSite Member
    Posts: 122

    If you work with a lot of rock, all you need to do is bid the whole job assuming no rock, then put in a line item for mass rock/ trench rock removal at $ per yard.
    Posted via Mobile Device
     
  10. icex

    icex LawnSite Senior Member
    from WV
    Posts: 389


    I think i'll stick with hourly rates for now.
     

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