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Discussion in 'General Industry Discussions' started by LFD 1249, Nov 14, 2012.
I consider that full on scrubbery and criminal.
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What you ought to do is stop by the place next year when its being serviced and see how the guy was able to blow your price out of the water. Don't be surprised if they are using 10ft 11ft or even 16 ft mowers.
Starting out and not charging enough for the first few jobs because a lack of experience is not being a low baller.
Almost everyone makes a few mistakes starting out in this business.
This is a good point. Different companies equal different sized fleets. Some companies are just better equipped to handle these large facilities. This means they most often can give a better price while using their large machines as a selling point. If you were a property manager, would you rather use someone with large 16ft mowers, or a guy with 2 54 inch mowers.
I agree that price is most often the biggest factor. However, a property manager needs to believe you will be able to handle 32 acres every week since it is his job to make sure the premises looks good. As a solo guy, what happens when your mower breaks, you get hurt, or your kids need you.
Large jobs are hard on equipment and time consuming. They always take longer than estimated.
Most guys will agree that it costs much more than 15/hr to run a business so you really need to plug in the numbers or talk to a financial adviser.
Successfully bidding large jobs is something that comes with time. There is no magic formula, and not much solid info on what ABCMOWS would charge for a specific property when he is on the other side of the US and has not walked the property.
Maybe you know someone that is in charge of lots land. Ask him what prices the bids came in at and compare it against what you would have asked. This will give you a gauge although far from perfect.
Go up to the property manager and ask him what his decisions were that lead him to pick someone else
You have to know your market, your cost and your ability then develop a price model and stick to it. If you are costantly beat do not get to down because there is competition. Hold your own and deliver and you will develop a reputation.
I just won a bid where I was 30% higher but I won on a score card including reputation and quality. It took me 7 years to develop the reputation. Under promise, over deliver and stay confident in your services.
FWI - $15.00 an hour does not truck, mowers, small tools, gas and marine insurance. Then you have labor and buden
Then you have profit.
I too have seen $15.00 an acre but that is for rough cuts on ROWs not parks and sports fields.
This is why you or me never get these jobs. You say it is pointless if you cant make money. The big companies will bid this low just to assure the crews have work. If they can sit in the office and make $50 profit they will do it. You or me want to make good money on this type of job. I work with me and 1 helper and I could never be competitive with the big guys price on this. Think about it, they can profit something regardless how small the profit and the guys get the hours. Its win win for them but for you or me it is BS. This is why I mainly just try to stick to residential. good luck and happy holidays