Very Large Company Beat my bid

Discussion in 'Irrigation' started by TexasFire221, Sep 2, 2011.

  1. TexasFire221

    TexasFire221 LawnSite Senior Member
    from Texas
    Messages: 480

    We are new to irrigation. We have repaired many many systems but only installed 2 news. Well we put in a bid for a new commercial project two weeks ago and the owner called me yesterday to inform me that another company beat our bid. This doesnt bother me although we really need the work with the horrible drought we are in, but I am mainly concerned that they beat our bid by half. They are the big guys and would have guessed 100% that our bid would of been less.How could this be? Are they getting materials that much cheaper by buying in bulk? I thought we were getting a good price on material online which was cheaper than what the local Ewing was giving us. Can someone help me understand this? They even beat my sod install by $1,000 and I knocked it down $25 a pallet because of the bulk. I just dont know how they are doing it.
  2. mitchgo

    mitchgo LawnSite Silver Member
    Messages: 2,903

    you get what you pay for

    Don't worry, you'll be back to fix everything in a few years

    Messages: 18,668

    Ditto from west Glacier
    Posted via Mobile Device
  4. Mike Leary

    Mike Leary LawnSite Fanatic
    Messages: 23,002

    Pics? We must have pics!:clapping:
  5. Wet_Boots

    Wet_Boots LawnSite Fanatic
    Messages: 50,036

    Shhhhhhhh, be vewwy vewwy qwiet. He's hunting gwaciews
  6. Mdirrigation

    Mdirrigation LawnSite Gold Member
    Messages: 3,588

    you say you are new to irrigation, only have installed 2 systems ,buying parts online , and this was a commercial job. And your bid was twice that of a larger established irrigation company , Sounds like you either screwed up the bid , or the larger company is hungrier than you . Yes they probably get a much better price than you at the supply house , they buy a lot more .

    I see it quite a bit here new guys bidding higher than the established companies , basically due to lack of experience.
  7. txirrigation

    txirrigation LawnSite Senior Member
    from Texas
    Messages: 977

    Dont expect to get a good deal at Ewing.
  8. johnsonslawnmanagement

    johnsonslawnmanagement LawnSite Senior Member
    Messages: 908

    What I have seen locally is the low bidders are spacing rotors with barely any overlap, say 6" or less. Doesn't amount to a hil of beans on a small scale but over a large commercial property it can add up. There are many ways to cut corners and shave off on a bid but beating you by half, one of you is way off.
    And on the sod: they guys rolling out sod here on commercial jobs are installing for $ .25 a yard.
    Posted via Mobile Device
  9. txgrassguy

    txgrassguy LawnSite Gold Member
    Messages: 3,083

    Some of the replies are relatively accurate, however, without seeing site details/bid specification and the guts of your bid I cannot say to what extent.
    Regarding sod, again depending upon site conditions especially at a commercial site, almost always the palletized sod supplier provides the installation and not the irrigation contractor.
    And yes, larger companies buying in bulk receive better material pricing - it is called economy of scale and is also quite difficult for a smaller operation to match.
  10. NC_Irrigator

    NC_Irrigator LawnSite Bronze Member
    from NC
    Messages: 1,444

    sums it up

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