Under bid by 12K

Discussion in 'Lawn Mowing' started by Blades of Steel, Jan 14, 2005.

  1. Blades of Steel

    Blades of Steel LawnSite Senior Member
    Messages: 599

    Recieved news on Tuesday that I have been under bid by 12k. That was a huge shock to me. I have been hit by 2 or 3k before BUT 12K!!!!!!

    Get this. 9.9 acres of turf, minimum of 2.5 hours of line trimming and edging, minimum of 40 minutes of blowing time, 2 half days a season in shrub work, 22 yds of mulch 2 times annually.

    The guy currently doing got the bid again for this season. His bid........18,000.00!!!!!!! How in the hell can he do this for that amount of money. He has 4 employees plus himself and he is there a minimum of 4 hours a week. I know all of this because my neighbor had me bid the property because he is incharge of hiring the vendors for all facility maintenance. However, all I asked him is not to give me his current bid. I didn't want to steel this from anyone because of having an in. Not to mention he would never do it anyway (not his character either).

    Anyway, I submit my bid as we do and wait it out. Ken calls me the other day to tell me that me and 2 other companies wasn't even close. he had 3 bids total. Mine for 30k, another large LCO for 27k and this other guy for 18K..

    I have lost my mind trying to figure out how this guy is making a dime off of theis property. I have put the calculater to this about ten times and through in some free stuff and still can't get to 18k...

    I told him this guy is a keeper and that he needs to contact me so that I can sub out all of my work and I'll stay on the golf course this summer..

    Have I lost it or is this guy working for nothing?


  2. lawnprosteveo

    lawnprosteveo LawnSite Bronze Member
    from Tulsa
    Messages: 1,930

    This guy is probably inexperienced and doesn't realize just what he's got himself into. It would be my guess that he is a tax cheat as well... the money he saves by not paying taxes allows him to undercut honest business people.
  3. out4now

    out4now LawnSite Bronze Member
    from AZ
    Messages: 1,796

    I think that is right. He probably can't estimate well. Get some cash together and be ready to buy up his assets when he goes broke.
  4. DSIM

    DSIM LawnSite Senior Member
    Messages: 440

    Just curious. What were you charging per acre for mowing?
  5. Blades of Steel

    Blades of Steel LawnSite Senior Member
    Messages: 599

    here's the kicker, he has been doing it for 6 seasons. His boss told him that my bid is what they used to pay before this guy came around.

    Your probably right. He's not doing taxes or something..

  6. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Messages: 2,810

    I'm not sure how many cuts you give there but I come up with around $22-24,000. He's definitely too low.. on the other hand you seem too high.
  7. J&R

    J&R LawnSite Senior Member
    Messages: 835

    The most i been under bid my bid 119,900.00 his bid was 25,400.00. The kicker is i wasn't the high bidder. i under bid 10,000.00.
  8. Flex-Deck

    Flex-Deck LawnSite Silver Member
    Messages: 2,845

    10 acres - trim - blow = $350/ mow x 40 weeks = $14,000 / yr (My wife and I mow the 10 in 2 hrs = with our setup it does not take as long to trim) (BTW there is not a 10 acre property in SE Iowa you could charge even this much with the services you have mentioned) It would be more like $225 per mow.

    Mulching - have no clue, but 22 yds can not be that much - say $1000

    1 day of trimming bushes. - If I charged $150 per hr X 8 hrs = $1200

    $14000 + $1000 + $1200 = $16200 = Looks to me like he is making hay. Maybe he is efficient.
  9. mdb landscaping

    mdb landscaping LawnSite Silver Member
    Messages: 2,205

    ya except you didnt figure in they are mulching 2 times per year, so you just short changed yourself out of a grand flex deck. and then you show you are making $350 a cut.... $35/acre is way too low in my opinion.
  10. Flex-Deck

    Flex-Deck LawnSite Silver Member
    Messages: 2,845

    It said 22 yds of mulch - What do you charge - I just threw in $1000 as a guess. I just mow, fert. spray weeds - I am not in landscaping. I have a friend that does that, and I guarantee you that If I gave him a $1000 to spread 22 yards of mulch, he would probably plan on retireing in a couple of years.

    As to the 350 per cut, you obviously do not live in mid america. Our cost of living is less, and that may be why we do not charge what you may think you need to. If I were to bid some of the eastern and west coast bids I see on this forum as to per acre bids, there is one thing I would be certain of. "I could sell my mowers, trailer, and truck, because I would have no jobs."

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