bidding with two companies

[WIPensFan]

Originally Posted by ProTouchGrounds

we have just had the opportunity to acquire another landscaping/snow company. Name, phone, po box and all. I was just wondering if there are any legal issues of bidding a job with both companies separate. I am planning on keeping the two separate for now. I know this sounds a bit shady but I am tired of losing bids to contractors that the turn around and do not perform the job to the specs outlined. I notify the agent in charge and most often they dont care. My idea is to bid on the higher end of our pricing structure with one company and a bit more modestly with my other company. What are your thoughts.

ProTouch, I've always respected your opinion on this site as fair and level headed. That said, this idea of yours is extremely unethical and out of bounds. I understand your frustration with losing bids and contractors not performing to the outlined specs. You don't need to deceive people to be successful. I'd like to think you're a better man than that.

BTW, I don't care if it's legal or not, it's just not right.

[snocrete]

Originally Posted by WIPensFan

ProTouch, I've always respected your opinion on this site as fair and level headed. That said, this idea of yours is extremely unethical and out of bounds. I understand your frustration with losing bids and contractors not performing to the outlined specs. You don't need to deceive people to be successful. I'd like to think you're a better man than that.

BTW, I don't care if it's legal or not, it's just not right.

Well said.

I'm suprised by some of the other posts.....kind of.

[buildinon]

I know here in Illinois that alot of people do what you are talkig about and I know alot of guys have gone to jail as well for what you are talking about. Some call it "The Chicago Way"...lol...but they have tried every variation of it here and some have gotten away with it and still do, while some others have not been so lucky and gone to the clinker. I don't agree with it at all. I think that if you bought the other company out you hvae the obligation to let the customers know, and let them decide who they want to do buisness with. It is hopefully you, but sometimes its not

[wewille]

I would agree with the naysayers. It sounds shady to me if you dont inform customers of the affiliation.

I dsont see a problem with owning two businesses, but it kind of sounds like your decieving people. I say no to this. However I feel if you can keep people informed and the affiliation between the two businesses is well known that would be ok. Just so everybody knows they are spending money with YOU. Maybe some of these new clients you have, went with this other company for a reason, like they dont like you.(im not saying thats true, I have no idea) Look at SNAP-On Tools, they are high quality and expensive. Look at Blue Point, they are cheaper and many cases foreign made, but they are owned and sold by Snap-On. They do this very succesfully, but everybody knows about the affiliation.

I wouldnt want to have a high grade business and a lower grade business. In the landscaping/snow industry its a terrible idea who wants lower grade landscaping amd snow removal? If you do decide to offer a service at a cheaper price with this second business make sure the quality is subpar. People get what they pay for. If your second company offers cheap prices and does great work like your other company, wont consumers think your other company is gouging them?

For the most part I think your idea is foolish. Its great to own two companies, but dont decieve people and dont offer one company as cheaper. Thats just dumb. It works for snap-on and bluepoint because bluepoint is made overseas and they can offer it cheaper. You CANT offer your services cheaper.

[born2farm]

I'm going to have to agree that this sounds shady and like a bad idea. You say after a few years you are going to merge the companies. How are your customers going to feel when they find out they have been tricked into thinking they were separate companies for the last couple years?

I say your best bet is to buy the other company out, buy what equipment you feel reasonable and hopefully sign all of the contracts. This will grow YOUR business without having to trick people into thinking your company is superior.

I do feel your pain as far as losing bids to people who do not perform the work to specs, but there has to be a level of self image and pride in your work somewhere. You don't want to make yourself look like a shady business over trying to prove a point.