Why do people do this

Discussion in 'General Industry Discussions' started by outdoor, Oct 4, 2011.

  1. outdoor

    outdoor LawnSite Member
    Messages: 43

    We were Bidding on three properties for a hospital there were 4 companies bidding
    first bid for year 63,468
    second bid 62,225
    third bid 60,785
    Fourth bid ( 22,455 )
    Theres no way this guy can do it for this price.They get mowed 52 weeks out of the year you have to maintain flower beds and trim shrubs.i have seen low balling but damn.:nono:
  2. jsslawncare

    jsslawncare LawnSite Bronze Member
    Messages: 1,673

    4th must have been for on property. Not 3.
  3. JB1

    JB1 LawnSite Fanatic
    Messages: 5,903

    I'll go with the dumber than a rock theory.
  4. RSK Property Maintenance

    RSK Property Maintenance LawnSite Bronze Member
    Messages: 1,504

    Maybe he figures he will get in there cheap and go up every year until he's where he wants to be price wise? Idk brickman did the same to me I bid on 3 properties all for the same company and my bid was around 17,500 for the 7 months of mowing and then they came in at 4000....
    Posted via Mobile Device
  5. cuttin-to-the-Max

    cuttin-to-the-Max LawnSite Bronze Member
    Messages: 1,337

    This happens all the times i can relate mostly to snow.... The site manager says the budget is 60k... They get the lowest bidder. He goes out and buys new equip. then by the middle of the season The lowest bidder has already blown all of the money he has gotten for the account and is now Payingg the customer to do services.
    Thats IF he still shows up!
  6. BPS##

    BPS## LawnSite Senior Member
    from WY
    Messages: 828

    A lot of companies will do that if they are trying to cut down on the competition.
    Happens all the time in the trucking world. 6 months later when they can't perform the shipper now expects to get great customer service for the hack pricing. Same as lawn care.

    3 places I picked up for next year the same thing happened.
    An out of state company came meddling into our market trying to expand and in order to pick up business they bid low.
    They promised the moon with their bargain basement prices but only delivered the south side of the tracks service. No body is happy with them.
    My bids were real close to a little over theirs.... I got all 3. I had to be in order to get the work.
    As long as I make the customers happy next fall I'll be able to inch my price up.
    Sucks to be them and have a worthless service reputation.
    I hope they go back where they came from.
    They are not needed in this area. For certain when they depress the rates the way they have.
  7. vencops

    vencops LawnSite Bronze Member
    from NC
    Messages: 1,537

    The client is dumber than the co. bidding if they take that low bid.
  8. knox gsl

    knox gsl LawnSite Fanatic
    Messages: 5,973

    I had the same thing this last spring. I bid $9,300 then a $8,800 and a $8,200 and then a $4,700. The $8,800 won the contract as they were also looking at company assets and employee totals.
  9. BPS##

    BPS## LawnSite Senior Member
    from WY
    Messages: 828

    So far here they take you at your word.
    Good thing, I'm still a growing business and some days the assets are a little low.

    If you say you can do some thing, they expect you to do it.

    I'm working off my reputation too.
    Folks at 2 of the 3 places I landed know me and my work.
    They put in a good word for my company at the 3rd place.
  10. Darryl G

    Darryl G Inactive
    Messages: 9,500

    Wow, those first 3 are really close. If I were the one procuring services I'd find a reason to throw out that lowest bid. Clearly they don't understand the scope of services if they're that much off the rest...more than 20% is a red flag.

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