One of the biggest co.'s is one of the biggest low baller's

Discussion in 'Lawn Mowing' started by nobagger, Mar 24, 2009.

  1. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Messages: 3,065

    Turns out one of the biggest company's is one of the biggest low baller's. Their new ad......"The (co name) advantage" "We guarantee the lowest priced services in the area" Take advantage of our stimulus package and save. This just proves my points of an earlier thread. These guys take on so much work, buy tons of equipment, have a huge overhead and when the economy get tough, they cant take the hit and have to low ball to get as many jobs as possible no matter what the profit, if any!
  2. shovelracer

    shovelracer LawnSite Silver Member
    Messages: 2,008

    Its not uncommon. There is one guy around here that is large for the area. He runs 5-7 lowball crews and 2 high end crews. Problem is you never know which he is bidding. Ive seen them bid 2 acre lots for 60 and also 1/2 acre lots for 80. My guess is he gets a feel for the client. The low ball crews smoke, swear, take their shirts off, bang up the equipment, and occasionally get caught smoking out the trailer. The high end crew is the guys that lasted more than 2 years.

    The how is easy. No workers comp and likely muffed taxes. How you can get away with it and have 20-30 employees is beyond me. All I can say is that I see my numbers for the year and can only imagine what this guy saves. Worst part is that people just assume or dont care. This only came out on a school bid last year when they couldnt produce a COI for workers comp after an audit and got fired after several years of service.

    CLARK LAWN LawnSite Silver Member
    Messages: 2,526

    there is a company around here just like that, same thing 20-30 employees all paid cash, tons of commercial work because they work for next to nothing. all there trucks look like junk, rumor is that you have to be a felon to get a job with them.
  4. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Messages: 3,065

    I finally got to see his ad in full last night. What a bunch of B.S.! He was advertising "his price" vs. "the other guys price" how in the heck can he know what the "other guys" prices are. I just hope people can see through the B.S.
  5. lawnwizards

    lawnwizards LawnSite Silver Member
    Messages: 2,439

    he probably sent out some "feelers" to get the competitions price. you know, house for sale an employee waits for the competition to come and give estimates. i'm sure everyone of us has been used before.
  6. kaferhaus

    kaferhaus LawnSite Bronze Member
    Messages: 1,444

    I had this (similar) happen last week. before I go on many estimates I do a google search of the address. and look at the Satellite photos of the property. (yes most of them are old but you still get an idea). Get this... in the photo the're a picture of two trucks with landscaping trailers in the back (behind a fence) full of equipment...

    Of course when I arrive a woman meets me (no trucks or equipment around) I look around and give her a ridiculously high price and in the same sentence tell her that if she accepts I'll have to try to find a slot in our schedule to "fit her it" as all 5 crews are pretty much booked with work (I only have 4 crews)...

    Had my wife drive by on her way home from work and she sees the two trucks and trailers in the back yard. What a moron.... had me go to his own house (and his properly looked like crap)

    Then I called the city, found out the guy is not licensed and turned him in.
  7. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    We have ran into this,

    been called a few names, By the solo guys, as it goes, a 3 to 4 man crew can leave a 2 acer lot in about 20 to 30 minutes, it's simply a higher volume. a regular 1/4 acer home takes about 10 to 15 minutes.

    knocking out 30 to 40 a day, the solo operator cant keep up, resulting in them calling us low ballers, however when we get to our larger areas, the solo guy cant compete, one of our largers is 5000 acers. it takes a couple of days, of corse not everything needs to be done all the time, but when we shread, that takes a while,

    have to be carefull of who and what your calling a low baller, while a solo cant do a 1/4 acer home for 35 & 40.00 the larger co's can.

    I have a solo guy in our area that's hates me. he bided a 1.5 acer lot at 95.00
    we took it for 60. it takes about 25 minutes with 2 guys.
    that still keeps there time around 100.00 an hour.

    Best of luck
  8. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Messages: 7,051

    Bohiaa, acer=acre just a fyi. :)

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