Big areas do not mean big profit

Discussion in 'Lawn Mowing' started by ALarsh, Nov 16, 2007.

  1. ALarsh

    ALarsh LawnSite Silver Member
    from Midwest
    Messages: 2,412

    I found this kind of amusing and to show some of the people that think that the guys that are cutting for the cities must be raking in the money. This is a break down of the bids (2005) given by a couple different companies for the city of Milwaukee. Every area was awarded to the lowest bidder and the 2nd lowest bidder was the back up contractor if the first contractor doesn't perform. I am unsure of the total acerage for these bids but look at the differences in bids. Pretty amusing. :hammerhead:

    The outcome? After researching the name, the FISHER company was started in 2004 and filed their articles of dissolution in February 2007. :hammerhead:

    mil bids.jpg
  2. nmez21

    nmez21 LawnSite Senior Member
    Messages: 712

    That's disgusting. Well proven point. Makes you wonder, who's actually crunching the numbers for those buisinesses.
  3. DuraCutter

    DuraCutter LawnSite Senior Member
    Messages: 806

    These co's think that large means prestige, bragging rights, large deposits and impressive sales. If the price is too low it's also a way to lose your shirt!

    Price is everything and if that isn't right nothing else really matters.

  4. mlbock

    mlbock LawnSite Member
    Messages: 10

    curious...what's the sq ft of each area?
  5. Flex-Deck

    Flex-Deck LawnSite Silver Member
    Messages: 2,845

    Good Topic - Rather interesting that it seems to be the same all over. I have bid a city job (2 yr. contract) for the 03-04 summers, the 05-06 summers, and the 07-08 summers.
    The people that mowed in 03-04 raised their bid up to my numbers in 05-06, but the problem was, that a new kid on the block with a mower and trailer sitting idle figured they were going to make a killing, so they became the low bid, and got it for 05-06.
    Then, in 07-08, they also raised to my levels, but we had another "new kid on the block" - same result.

    I was finally invited to show the city our equipment to give them a first hand look at what we can do and why we say we can get it done on time, and done well on time. I think the next contract will be awarded on a basis other than low bid. They are possibly over the "low bid" idea. It just does not work. Thanks Brad
  6. paponte

    paponte LawnSite Silver Member
    Messages: 2,366

    It's ok, he'll lose his shirt and it will get awarded to the next guy that "can handle" the work. We see this all the time, and it's not unlikely to get blown out of bids by $60k. Just means that someone is in a place they don't belong. I'm surprised they actually went with that low of a bid. Usually a red flag goes up seeing the other numbers given.
  7. meets1

    meets1 LawnSite Gold Member
    Messages: 3,850

    I here ya. I lost a 33 acre site due do the same reason - low bid was taken. I was invited to re-bid and i did but 2 new guys are also bidding. By the way - the low bid was 40% under my bid.
  8. MOW ED

    MOW ED LawnSite Fanatic
    Messages: 5,028

    There is always an idiot to bid low and make themselves look like they can handle all the work. That is interesting to see.

    I wonder what the deal is with Area 6 in that chart. Very strange numbers.
  9. hoyboy

    hoyboy LawnSite Senior Member
    from Chicago
    Messages: 346

    This is typical of municipal type maintenance work. It's truly unbelievable. I've walked away from the bid openings way too many times just shaking my head in disbelief. I no longer bid this type of work. And even if you get lucky and obtain a job somehow, there is no loyalty. It doesn't matter how well you perform, because next year (or whenever the contract expires) they bid it out again and some idiot comes in and slashes the price by 40 percent. What a joke.
  10. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Messages: 7,547

    I think its a matter of CRUZ not wanting the city to waste their time calling anymore. I did that with a public housing community. This is very typical though.

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