Just lost a bid

Discussion in 'Lawn Mowing' started by 2 man crew, Feb 20, 2002.

  1. 2 man crew

    2 man crew LawnSite Senior Member
    Messages: 403

    Well I just got the news on one of the commercial properties I bid on for this year’s lawn care. Well the answer was NO. This was 5 medium sized commercial buildings and a 3-year contract. My bid came in at around $45,000 per season. So I asked the decision maker what was the reason I didn't get the bid. He said " well obviously price was part of the decision." So I said " well how much of a price difference was there" Thinking I might still have a shot.:rolleyes: He said the company that got the job came in at $18,000 per season! I was shocked. So I said "WOW that's low." He said " No kidding, they really came in with some good bids this year. I was surprised to see that myself". Then I asked him if they were the only ones that low, or were the other LCO's closer to my bid. He said "There were 2 others that had low bids but most were around yours." I did get one more tidbit out of him too. He told me Land Care USA was at $47,000. So that made me feel good about the whole thing. I know who the company is that got the bid. They have been doing these properties for a few years.
    Maybe they know something I don't. All I can say is every thing works out for the best. Ya win some, ya lose some. But if your gona win some they better be at your price. ;)
  2. Premo Services

    Premo Services LawnSite Bronze Member
    Messages: 1,516

    :eek: :eek: :eek: :eek:

    WOW!!!!!!!!! The lowballers bid is $27000.00 lower than yours. There must be a lot of services offered in the bid price. You will see that most of the items on the job are not done right or most likely not at all. The decision maker will be getting a real let down in services at that much of a difference in price. and then you will sit back and say " YOU GET WHAT YOU, or in this case, DON`T PAY FOR".
  3. Mark

    Mark LawnSite Senior Member
    Messages: 723

    I know the feeling ive been in the same boat as you, but just like Premo said you get what you pay for. You know they can't be pulling much profit at all, 5 commercial sites for just around 560.00 dollars per stop. It does make one wonder how they survive, even if they are alot larger in man power thats still only around 112.00 per site. I just revert back to a old saying my grandma used to say,just scratch you azz and get glad. Youll probley get a better deal somewhere down the road. Keep your chin up, you knew when you made the bid what you needed to make a good profit so don't let this effect your prices. Marks Mowing Service
  4. Twotoros

    Twotoros LawnSite Senior Member
    Messages: 494

    Everyone here know's how you can bid that low. No taxes paid to any govt. agency. 6$ an hour employees. Run down equiptment. Beat up trucks and poor quality work. You now know what to bid when the owner comes crawling back.$47500.
  5. Randy Scott

    Randy Scott LawnSite Bronze Member
    Messages: 1,915

    Such is life! :)
  6. RON66106

    RON66106 LawnSite Member
    from kcks
    Messages: 12

    Don't forget that these people are porbably not insured either!
    I lost two bids this week. I told them basicaly what twotoros said and one of them didn't even know if the person had insurance or not.
    Don't let it bother you do as I do and go out and drop off 10 or 12 proposals letters. I have had these kind of people call me in mid season wanting to get out of the mess they are in. So keep it in mind and adjust the price accordingly (everything can have an a$$ hole tax)
  7. southcut

    southcut LawnSite Member
    Messages: 9

    The same thing happened to me with a bid for eight tire stores. A company out of Wake Forest, NC bid the same stores in Charlotte, NC and was less than half of my bid. We are talking about $75/week /store and the company from Wake Forest bid $27/week/store. Needless to say they got the contract. I have been told that they tried to contract all the Wachovia bank branches and were going to sub all the work out locally. They gave a big song and dance to a few local lawn services and after the local guys put time into estimating all the branches, the wake forest company pulled out. I hope they keep doing business this way as they won't be around very much longer.
  8. RoewMow

    RoewMow LawnSite Member
    Messages: 28

    Unfortunately, I know what you mean. We just bid a job at a Steakhouse, and the gm said that our bid was almost 2x the lowest one. This place has numerous plantings/trees to cut around and trim/edge. We even included cleaning by a state fence for better roadside viz and the other guy didn't. I guess I'll just have to redouble my efforts on other props.
  9. Currier

    Currier LawnSite Senior Member
    Messages: 564

    I'm with you on the agony of defeat thing ...or would that be the agony of victory if you had won it at the dirtball lowboy price!

    So far this year I have bid out two commercials and was WAY higher than the winning bid. The first one I expected and was not real interested in anyway. The second happened last week and I really gave a solid bid. It was for a (gag) homeowners assoc. I bid it at 225 per week 26 week season.

    They went with someone that is going to do all the mowing in 6 months, include the fertilizing, do sprinkler maint. (included), and set up and monitor the sprinklers for $1155.00 total.

    It gets downright ridiculous. I figure this guy is going to be making about 14 an hour...and that would be if he were running a Walker....I wonder if he is insured? I'd be curious to see how he gets it all done in 6 months...must be magic.
  10. 65hoss

    65hoss LawnSite Fanatic
    Messages: 6,360

    Its just part of the fun!

    I lost a comm'l property last year to a true lowballer. I inheretied the property and it was already low. They found some sucker that came in and bid $35 per cut. It was a 3-4 man hour job for his equipment. They asked me to meet his price and keep the job. I laughed (true story). Told them i was already thinking of raising the price. No thanks, I'll go broke from the house. I don't need this job to help me go broke.

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