You guys should like this!

Discussion in 'Lawn Mowing' started by Bunton Guy, Nov 14, 2004.

  1. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Posts: 1,756

    The airport in my area ' charlotte douglas international ' had bid out their landscape maintenance contract to 3 companies 2 being national and one being close to national size. The contract was stated that the new service provider had to provide 9 workers and 1 supervisor at all times for all work to be done outside of the privacy fenced areas. Im not sure just how many acres it is that the contract has to be maintained but there is no material furnshied by the LCO. All materials are to be bought by the airport and put down by the landscaper. Keep in mind these prices are for the all 3 years of this 3 year contract.

    TruGreen-Land Care $683,923
    Valley Crest $1,305,000
    The Budd Group $1,467,936

    Contract awarded to low bidder. (TruGreen)
    Last 3 years of maintenance where done by The Budd Group a large janitorial and landscape management company.

    Council meeting:

    harkey: How does Budd's bid this time compare with what we have been paying them?

    Orr: It is less than 10% more than what we paid them last year.

    Randolph: Is this just service or does it include materials?

    Matthews: Are they bonded for this?

    Orr: Yes

    Orr: NO, it does not include trees or anything like that but it does include pine straw, mulch and fertilizer.

    Gilreath: Is it unusual to have this much difference in the low and high bidders?

    Orr: Is is highly unusual. IT usually indicates a severe problem. This is a service contract. We can cancel the contract with or without cause in 30 days notice. So if they don't do what they need to do, then we will simply cancel the contract with them.

    Orr: Clearly this is a very aggressive bid but is clearly a very high profile contractor. Your trucks and your equipment is sitting around here all day everyday and millions and millions of people see it.

    Just thought you guys would LOVE to see how TruGreen can bid nearly HALF of what other large national competitors can.

    I personally had bumped into them on 2 bids and they closed on both.

    One residential I bid $187.00 a month to maintain this small 1/4 acre lawn 12 month contract. They bid $145.00

    On a commercial national chain store. I had put a bid in for $12,000 a year for just landscape maintenance....they put in a really nice bid of $6,200.00
    WOW gotta love a money hungry...over promise under deliver kinda company right?
  2. Envy Lawn Service

    Envy Lawn Service LawnSite Fanatic
    Posts: 11,062

    Simply horrifying!!!
    Can't understand why they would want to leave that much on the table.
    Destructive to our industry!
  3. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Posts: 1,756

    Just think of it...they could have bid 1,100,000.00 and got the contract....+ they would make an extra 500,000+ OVER what they bid!???? STUPID EH?
  4. syzer

    syzer LawnSite Bronze Member
    Posts: 1,266

    Yeah its pretty amazing how they hurt both themselves and others and dont even worry about it. Thats just one contract. Think of how much money across the board they are losing nationwide.

    Upsetting to say the least.
  5. Travis Followell

    Travis Followell LawnSite Silver Member
    from KY
    Posts: 2,207

    Thats very sad the way that company works.
  6. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    Yeah but you know what? They are still in I believe the top 3, on the top 10 wealthiest lawn service company list. I will have to double check to verify that, but it's definitely in the top 5. They've got to be doing something right. ;)
  7. syzer

    syzer LawnSite Bronze Member
    Posts: 1,266

    Only because of their size. Think of where they would be on that list if they didnt cut themselves so short on the contracts.
  8. Envy Lawn Service

    Envy Lawn Service LawnSite Fanatic
    Posts: 11,062

    Now that's getting to the point!!!

    And I bet they would still be very close to the same size, while being wealthier.
  9. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    Whats the difference? You have to encounter wealth in order to grow. Not that I am agreeing with the bid at 1/2 price, but there has to be a reason for it. A company of that size does more volume than most could ever dream about. Volume = buying power = reduced prices = more discount handed to the consumer.

    All that I am saying is that there has to be a reason behind it. A company of that size doesn't have little Timmy shooting out bids of that nature. :)
  10. ALarsh

    ALarsh LawnSite Silver Member
    from Midwest
    Posts: 2,412

    TruGreen is number one according to Landscape Management magazine, July 2004 edition. A few specs about their operation, headquarters in Memphis, TN; 300 branches and Franchises; 25,000 employees; $1.4 Billion in revenues; 30 years in the business; Don Kames is the President; they do 30% "maintenance", 65% "Lawn care", and 5% "other". Number two on the list of the largest LCO is ValleyCrest Cos. and TruGreen is beating them by $725 million in revenue.

    Just a little bit of information about TruGreen. :drinkup:

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