lowballing

Discussion in 'Lawn Mowing' started by tbird, Mar 9, 2000.

  1. tbird

    tbird LawnSite Member
    from iowa
    Posts: 13

    im new to this post and to the lawn care bus.<br>but i have had a chance to bid my first job. <br>the bid consites of a city wide mowing only <br>contract i got last years contract bids and look at the prices then went and looked at the areas to be bid. after all was said and done my bid come to be 15 dollars lower for the whole year {there are 20 areas to be bid<br>and dont have to bid on all af them} i bid on all areas some i was 10 to 15 higher then last years and some 5 lower. do you think this is lowballing.
     
  2. southside

    southside LawnSite Senior Member
    Posts: 790

    No, I dont consider it low balling (or under- cutting as its know here).Being $15<br>cheaper isnt too bad when you consider other<br>contractors can and do under cut by as much as 50%.So if my price was beaten on a government job by $15,I wouldn't ***** too<br>much about it. Hope this helps and good luck<br>with the quote.<p>Karl
     
  3. Lazer

    Lazer LawnSite Bronze Member
    Posts: 1,446

    It's not lowballing if:<p>Maintain proper insurance<br>Have decent or newer equipment<br>Do nice work<br>Retain the customer for several years<br>Retain employees several years<br>Make a good living w/o working 90hrs/week.<p>Most of the time it IS lowballing and one of the pieces listed above is missing after 3-4 years.<br>
     
  4. thelawnguy

    thelawnguy LawnSite Silver Member
    Posts: 2,412

    Lowballing is bidding a price lower than anyone else with the intent on raising the price after getting the job. Some do this by leaving things out of a bid so their bid appears lower, then adding it back in after the deal is signed. A lowballer has no intention of performing the job at the low privce originally quoted. Ads in the paper that state &quot;as low as&quot; are lowball ads.<p>If you dont have to squirm and dance and lay it on thick to raise the price afterwards its not really a lowball just lower pricing.<p>I spent several years in the car business and can tell you what REAL lowballing is all about.;)<br>Bill
     
  5. parkwest

    parkwest LawnSite Senior Member
    Posts: 678

    A few years ago my bid on a project was $187,000. The owners went with a bid of $150,00. I saw the owners a couple of years later. They said the project had run into a few problems along the way and the final price they paid was over $320,000. They tried to get out of the contract but the contractor threatened to sue, plus they couldn't find another contractor to pick up where the first one would leave off.<p>Another time I found where the client had the contractor bidding against himself. They would wait a few days and tell him we would do it for less and if he wanted the job he had to come down in price. They did this 4 times to the guy finally, when he said he didn't think he could beat our price, they told him, &quot;okay we'll go with you because we like you better.&quot;<p>I can not stress enough, you need to know your cost so something like this doesn't happen to you.<p>I think your job, as owner of a service company, is to convince the client you get what you pay for. In other words, You can't get a Lincoln Town car for the price of a Geo Metro. Then give them a fair price and then stick to it no matter what. Sometimes it better to stay home and go fishing than to do a job just to keep busy.<p>Good luck
     
  6. Barkleymut

    Barkleymut LawnSite Bronze Member
    Posts: 1,117

    I don't enjoy fishing, but I agree. Sometimes you need to realize that mowing an acre for $35 isn't worth it. Move on, there is more work out there and someone is willing to pay for a good job.
     
  7. MJM Landscaping Inc

    MJM Landscaping Inc LawnSite Member
    Posts: 43

    Southside, I wouldnt call the guy a lowballer but i certainly would have bitched about being dropped for $15, that is as long as i was doing my job properly. But as we all know, for some mgmt co's money talks!<br>Mark A Musolf
     
  8. tbird

    tbird LawnSite Member
    from iowa
    Posts: 13

    well guys thanks for input but i think my question was answeared today when i found out who won the bids. as i said this was the first bid i have done and there where 20 areas to bid on. well as it turns out i only got 2 of the 20 areas and they were 2 out of the 12 that i bid $10 higher on then last years bid. i bid four areas 5 lower then last years and dindt get a one of them. but i guess its my first lesson on getting lowballed out because i felt a little guilty for going 5 lower still would have made a fair profit but it was cutting it to close to go any lower then what i did.
     

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