Bidding wars begun ALREADY

Discussion in 'Lawn Mowing' started by meets1, Oct 8, 2006.

  1. meets1

    meets1 LawnSite Gold Member
    Messages: 3,836

    In my area there are town about every 10 - 15 miles. Rural area in b/t. Corn and beans. Well we all travel around to service different towns.

    Deal is we take care of one large commercial account. I was asked the other day that they are going to re-bid the work for 2007 year. Ok - I ask if there were problems that I didn't know about, that they were unhappy etc. Guy says no but another competitor was in ans wants to place a bid but we want you to break the bid up b/t irrigation part of business and the rest of the complex. Around blding is 2 hours with 2 ppl on Z's bagging. The other part is 33 acres of mowing with 2 455-D's.

    Now word on the street and at the dealer is this new guy already has the job, signed sealed & deleivered. How do I approach this situation when I present my bid to him this week?? Also please include a price you would do this for. Open area is open - a few evergreens, 1 - 3/4 long ditch area, 2 culverts to go around, 1 massive sign, rest is easy mowing.
  2. Jpocket

    Jpocket LawnSite Silver Member
    Messages: 2,280

    I would try to be in around $1450. No matter how much you want the job, don't do it at a loss. You can do it in a day right?
  3. cush

    cush LawnSite Senior Member
    Messages: 352

    last years price + 5% increase.
  4. meets1

    meets1 LawnSite Gold Member
    Messages: 3,836

    Hey everything is done in a day. Only time we get behind on that one is if it has rained or is wet cuz the ditch and culvert area's collect alot of water and we have been stuck down there. So that is our monday job - but the guy asking to bid just go after everything to conquer the world.

    Example - 1 job - bid it / year for mowing, bushes pruned, landscape weeded etc. Normal stuff you and I are expected to do. I have done this property for 4 years. I new what numbers had to go. This guy bids 58% of what our bid was. The manager told me that and said we have to go with him for that price. What really bites - our shop is right across the street! Although this guy has lost more help again this year - lastest to go - one guy waited 6 weeks for payment - received his check with an advance for the next two week and the bank told him there was money in the account so he couldn't cash it. He quit. My little rant - sorry!
  5. lawnwizards

    lawnwizards LawnSite Silver Member
    Messages: 2,439

    if i was you i'd be waiting for them to call you back after he realizes hes not making any money and quits showing up and tell them that there is a 10% increase from your previous price.
  6. Palmer'sLS

    Palmer'sLS LawnSite Senior Member
    Messages: 535

    i just want to know what else you have for the toro's?..that sounds like a big hit?!?!
  7. meets1

    meets1 LawnSite Gold Member
    Messages: 3,836

    I have a front mount toro, 4 z with DFS baggers, and 6 jd walk behinds. Yes, it would be a hit for us. I use those mowers at a few other smaller accounts that adjoin property but nothing like this account.
  8. MJB

    MJB LawnSite Silver Member
    from Wa
    Messages: 2,869

    Thats to cheap . This guy is trying to get in by under bidding it. I'll bet he waits a few months then goes to the customer and says he can't do it that cheap anymore he messed up. Hoping he can get them to raise to close to what you were doing it for. --------

    Tell the customer that they can't do it that cheap and will be out of business or asking for a raise very soon. Hopefully they will be calling you back. It's happened to me before and I got a raise every time.
  9. meets1

    meets1 LawnSite Gold Member
    Messages: 3,836

    I here ya. Same guy under bid a school we did. It took 3 hours with a 455 D and 1 hour up front with a toro z. Since it was a christian school - we did it for around $140.00 / time. He wanted it bad, kept asking and asking finally they let him bid - $80.00. Went to toro to price a new 72 deck Z - to bad of credit - then went to John Deere and got a new 72" deck Z with there finance options. He did go back to the school board and asked for more - they said that was your price so therefore thats what were paying you. So his wife does it all day saturday cuz that way - in his mind - he isn't paying a wage for someone to mow there all day, cuz gee, its his wife.
  10. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Messages: 4,372

    There's two ways of looking at this situation.

    I've dealt with both over the years.

    1) "The word on the street" I've had this happen so many times, usually it's the competition spreading the "news" saying they've already got whatever property no questions asked, and after all is said and done, I'm back doing it.

    You can just put your bid in and ask like you've heard nothing and just go on with life.

    2) If you're real real sure about the word on the street, before you work out a new bid, go in and talk with your contact, and call him on it, just say you've heard so and so already has the contract, and you want to know if that's true or not, because you don't want to waste time to make up a new proposal if it's obvious that you're not going to get the work.

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