The ULTIMATE lowballer

Discussion in 'Lawn Mowing' started by AEL, Apr 18, 2011.

  1. AEL

    AEL LawnSite Bronze Member
    Posts: 1,724

    Hey guys,
    i got asked by a local township to bid on there parks,sportsfield maintenance contracts for this year. Township consists of 105.9 acres to cut. Half of that is sportsfields which need to be cut every monday and friday.(the rest of the areas are to be mowed weekly but in the spring or rainy year it could be twice a week, and this would not be an extra in the contract) 20 acres of that is cemetaries, the rest is parkland and around firehalls,offices,boulevards etc. In the price you are suposed to include garbage cleanup,trimming,branches, and if requested bag the grass from the sportsfields. Contract is from the last week of april to the last week of october. My price was somewhere between 70-80k per year, with a 3 percent increase each year for the duration of the contract. I felt that i was pretty low and didnt really want to get the contract. Well get this the winner was 30,000 each year for four years. Next lowest was 34,000, followed by 59,000 and then my bid.

    lets do some quick math here- 105.9 acres weekly, half of that sports fields.(which are mowed twice a week) so every week 158.85 acres are to be mowed. (this doesnt include all the areas that have to be mowed twice a week, in the rainy season) 158.85 acres everyweek x 21 weeks= 3335.85 acres to be mowed every year / winning bid of 30,000 =$8.99 per acre for mowing,trimming,garbage and debris cleanup.

    What is this world coming too? Are people really willing to pay to work. Guess so.
    Anyways good luck to everyone this year, and lets keep raising prices to keep put things where they should be and level the playing field a bit.:weightlifter:
     
  2. damnfingers

    damnfingers LawnSite Member
    Posts: 56

    "...lets keep raising prices to keep put things where they should be and level the playing field a bit."

    Sounds like you need to start (or join) a union.

    Prices are *where they should be* when people are willing to pay them. Raising prices only prices you out of the market...as you found out.
     
  3. nothing surprises me anymore.
     
  4. AEL

    AEL LawnSite Bronze Member
    Posts: 1,724

    I guess you missed the part where i stated the work was for a township-ie lowest bidder wins. $8.99 for mowing,triming, and trash cleanup is not "where they should be"
     
  5. damnfingers

    damnfingers LawnSite Member
    Posts: 56

    And where does the township get the money to pay for the mowing? Taxes. Would you rather your taxes be raised to cover the cost of the mowing or would you rather they stayed the same and covered other services?
     
  6. gebby

    gebby LawnSite Senior Member
    Posts: 705

    Bids are what they are. Nothing to hang your hat on. If the other guy does a good job and if he is happy and they are happy that's what the township is looking for. You have to bid what you think you can do. In this day and age everybody is looking for the best services at the best price. Thats why it is a bid. If you didn't get it move on. Theres plenty more work out there.
     
  7. weeze

    weeze LawnSite Fanatic
    Posts: 7,826

    i can't imagine even doing any work like that. that's just too much to keep up with to me. i like to keep things simple. you'd have to have guys/crews running around everywhere to keep on top of that. i guess some do that but it's just not for me.
     
  8. ajslands

    ajslands LawnSite Silver Member
    Posts: 2,238

    So are you calling this guy a lowballer because he got the account? Or maybe if he has it for four years, he will raise it after that.
    Chances are, he knows what he is doing. So calling another company a lowballer just shows ignorance.
    Three companies were below your prices so were they lowballers too?
    Posted via Mobile Device
     
  9. Storm the Patriot

    Storm the Patriot LawnSite Member
    Posts: 114

    Yea not to jump on the bandwagon, but i get tired of people crying about "lowballers"...Its all about capitalism.
     
  10. all ferris

    all ferris LawnSite Bronze Member
    Posts: 1,307

    Fuel alone will be $10,000 per year. The guy is an idiot and will quit the bid once he figures it out.
     

Share This Page