Trugreen Bidding Ridiculously Low

Discussion in 'Lawn Mowing' started by lawnkid, Mar 18, 2009.

  1. lawnkid

    lawnkid LawnSite Senior Member
    Posts: 935

    As a sign of the times be advised. I am on the brink of losing a large high-end landmark property to TruGreen LandCare because their company is in bad shape, they really want the account I service and are super desperate for work. When I saw the proposal myself I had to laugh but at the same point my blood starting boiling. I won't talk exact numbers but let's just say I bid against them for a sum greater than 30k in spring 2008 and got the contract for the whole nine yards(cutting, fert. treatments, bed-edging, mulch, tree trimming, irrigation maint. etc.). Last week, unknown to me because they already do lawn care for this customer at other locations, they bid one quarter of what they did last year and claim they will provide better service and more frequently. I can't even compete with that. This is a multi-acre property and after I did the math they can't be cutting for any more than $65 per cut and mulch will be installed for $12 per yard. This is also after I have gained several customers and compliments from this account has been in numerous publications for it's beauty and precise maintenance. So I just wanted to vent for all of my frustration and do not wish this happens to any of you. All of this is happening because a particular public office needs to shave it's budget 20% and do not care that they will be sacrificing quality because of it.
     
  2. jtslawncare

    jtslawncare LawnSite Member
    Posts: 57

    Hate to hear that man... Alot of companies are in bad shape right now... There's a landscaping company starting to mow this year and are mowing lawns for half price or less of what some of the other LCO's are doing them for.

    Why don't you go talk to them and see how's it go from there..Possibly lower the price a little bit not like Trugreen's bidding it and see what goes on from there...
     
  3. Lawn Pawn

    Lawn Pawn LawnSite Senior Member
    from zone 3
    Posts: 568

    From what I have been told by former TG employee.... the way they manage accounts, and the inefficient way they run their crews is one of the nails in their coffin.

    It seems they are signing their own death certificate by cutting prices even more. You hear a lotta stuff... but how much is true?
     
  4. Frue

    Frue LawnSite Bronze Member
    Posts: 1,472

    You have to understand this is when truchem really starts to take off. You should buy stock in them because they will clean house this year. They have buying power and can add or decrease product very easily. I would go to the property manager and talk with him. Your best defense is comunication.

    I hate to say this but lower your price. Do things like instead of putting on 1lb per tho go 3/4 slow release. If you think that I cant do that then realize truchem will. How do you think they can do a lawn for 20 bucks when everyone else is at 45. Pull back on your maintenance, skim coat the mulch. I know these ideas sound rough but this is what your comp is going to do! Keep the account at all cost!
     
  5. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,141

    Frue is right you know whether you can match them since you know your exact mow/trim times on the property. In those TG contracts a lot of items are billable and not included in the monthly amount so ask if you can see the contract to match.
     
  6. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    Seems there BAd Businessmen at the wheel. these days.

    I cant see how you could cut your price that much when your already in trouble and survive.
    Stick to your guns
     
  7. kaferhaus

    kaferhaus LawnSite Bronze Member
    Posts: 1,444


    Been there and done that and you are right. Many times the property manager doesn't correctly read the contract. They see the monthly biling price and think that's it. On many occaisions over the years I've had to read it for them and point out that it's apples and oranges (the bids). One is full service with all costs explained up front and the other is "ala carte" with only the weekly service even priced! Hedge trimming, fert, pest and weed control mulch etc are all time and materials OR the pricing is so vague that no one can figure it out.
     
  8. PTSolutions

    PTSolutions LawnSite Silver Member
    from OH
    Posts: 2,328

    I have been having customers ask if i would match trugreens prices for fert programs and i tell them that all my previous customers who had trugreen, use me now, or another fert company b/c of how bad trugreen has messed up their lawns. I have lost income b/c of not being able to mow at times b/c the lawn wasnt responding to the barely there fert treatments.
     
  9. dishboy

    dishboy LawnSite Platinum Member
    from zone 6
    Posts: 4,164

    It's called Corporate Warfare. Operate in one region at a loss to put the competition out of business while sustaining profitability in another region. I watched Albertsons run a locally owned Grocery store out of business by operating in the red for two years. Once the business folded high grocery prices returned.
     
  10. Perfect Image TLM

    Perfect Image TLM LawnSite Senior Member
    Posts: 267

    Trugreen mows grass?
     

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