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$35.00

Discussion in 'Commercial Snow Removal' started by DJ Contracting, Nov 19, 2008.

  1. DJ Contracting

    DJ Contracting PlowSite.com Addict
    Messages: 1,392

    Well thats what i was out bid for on these two side by side lots. One was a State Farm Ins. and the other was a lawyers office next door they share part of the parking lot. I received a call from the lawyers office when he received my contract (seeing how i have been plowing these lots for 6 years), i raised the rates $10.00 for the first two increments and kept the higher increment rates the same also the salt rate went up, but these two always refused salt. So the insurance office called me today and started to complain about the rats, so i asked him if had talked to the lawyer (because it sounded like i was talking to the lawyer) anyway i told him that i was not going to lower the rate however i would change the first two increments from 1-3 to 1-4 and 5-8, anyway he told me that they were going with this guy that quoted $35.00 per lot (i was @ $60.00). I asked him if they got a copy of the guys liability insurance and guess what he did not have an answer, I told him good luck and hung up the phone.
     
  2. dannyslawn

    dannyslawn Senior Member
    Messages: 106

    I put a bid in early this year to a insurance office. They went with someone else. I asked how come. They said they had a lower bid. That's no big deal it happens all the time. When I asked them if the other company had insurance they said they had no idea and thought you didn't need insurance to plow. Go figure!
     
  3. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    Are they going to lower your insurance rates?

    People have no loyalty.

    They were almost half your cost however. Keep an eye on the lot. Make notes as you drive by. Give them a call once in a while to see if they are happy. Or just let it go an move on.
     
  4. DJ Contracting

    DJ Contracting PlowSite.com Addict
    Messages: 1,392

    Yea talk about loyalty the lawyer dude and i went to school together since the first grade, and he only lived 1.5 miles away, not to mention he was at my 10 year old birthday party go figure. :nod:
     
  5. hydro_37

    hydro_37 PlowSite Veteran
    from iowa
    Messages: 3,790

    Wow DJ....you talked to them ALOT more then I would have. The minute they said they had someone else I would have said good luck and hung up.
     
  6. DJ Contracting

    DJ Contracting PlowSite.com Addict
    Messages: 1,392

    Yea i guess but i was trying not to lose a customer but oh well, i just picked another one today by referral the best way in my opinion.
     
  7. FordFisherman

    FordFisherman PlowSite.com Addict
    from 06611
    Messages: 1,594

    I know how you feel. Got a call today from one of my lot accounts. Seems someone came in at close to half the price that I quoted AND they are going to shovel the walkways around the building (the owner shoveled all last season) My first question was "Does this new guy have insurance? That price seems very low for anyone who knows what they're doing". She responded with "Umm.. yeah, and for the price I couldn't refuse". Based on last years snowfall this guy will be lucky to clear 50 bucks per push for a 50 car lot with a downhill entrance with sand/salt and the shoveling. Don't people understand that if it sounds too good to be true that it probably is?
     
  8. mercer_me

    mercer_me PlowSite Fanatic
    Messages: 6,361

    I got under bid by $1 last year. I plowed they yard the year before with no complaints, and they still hired the guy with no expreience to plow the yard.
     
  9. SNOWANDICEMAN

    SNOWANDICEMAN Senior Member
    Messages: 225

    They Pay for what they get

    To many low balls out there. They are all new to plowing and they don't know how to bid on jobs. They under bid everyone. They will find out the hard way !!!!!!!!! :D
     
  10. Let them go, Lawyer that dosn't understand value vs cost yeah cause they are all in it to help people out of the goodness of there hearts, insurance guy didn't think it prudent to check for liability insurance let them go they will become somewhat enlightened in the next season or two i am sure. I almost gave in to that kind of BS where a few of my customers got together. Four commercial places a stones throw from my house(thats worth a lot to me as i live in a rural area so all of my other work is about minimum 15 min from home) all got together becasue I was to much and they found someone else but wanted to give me a chance to "do better" I staed my prices are already exceedingly reasonable, the spokesman for the group disagreed. I dropped all 4 with out another word and picked up one property (two seperate businesses on one lot that get a corresponding % of the bill) that takes about the same time to do as the two smaller of the above 4 but pays as much as all 4 did. Drove buy last night (we had snow already a whopping three inches) and looks like the piles where stacked by a large 4 wheeler or s-10 and they routinely get plow berms 3-4 feet high across the front of their lots as they front a four lane divided highway ie two lanes get dumped in there driveways. When i drive by (on the way home to go to bed) and see that the new guy can't even get in to plow I ll have to pull over so i don't drive off the road laughing
     
  11. RepoMan207

    RepoMan207 PlowSite Fanatic
    from Maine
    Messages: 5,035

    Christ, I think I bid too high this year on most of my accounts.... Alot more guys out of work and have plows on there trucks around here. Not a good thing all the way around.
     
  12. FordFisherman

    FordFisherman PlowSite.com Addict
    from 06611
    Messages: 1,594

    I can see if someone beats your price by $100 and you lose the account; its on the customer as they decided to throw you under the bus. But when your at the right price and someone comes in at almost half of your quote it can only mean 2 things. Either your price was too high too begin with or the new guy doesn't know what he's doing. By my estimation my "lowballer" friend stole my account to make $50 for an hours work. He probably won't realize this until mid January.
     
  13. Ipushsnow

    Ipushsnow Senior Member
    Messages: 314

    There should be a unwritten rule, if a customer dumps you for a lowballer and calls you back when they realize their mistake your price should go up.........25% sound reasonable?
     
  14. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    stay friends with both of the businesses, keep bidding it every year..and eventually you'll get it back.....it maght take 5-10 years but you'll get it back....
     
  15. EPPSLLC

    EPPSLLC Senior Member
    Messages: 209

    You all give up too easy. . . . .

    Watch this video

    <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/2caN1Qt_8BA&hl=en&fs=1"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/2caN1Qt_8BA&hl=en&fs=1" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>
     
  16. merrimacmill

    merrimacmill PlowSite.com Addict
    from MA
    Messages: 1,822

    I'm almost feeling like I'm over bidding accounts this year. If I can't make reasonable money at plowing, I would rather stay in bed. I gave a bid to a person the other day, $125 a push. It was a pretty small lot. My price included plowing, shoveling the small walkway, putting down ice melt on the walkway when needed, and daily site checks completed by 7 30 am. They looked at me shocked about the price... Odds are she will end up hiring some bozo townie that happens to have a plow on his truck so he thinks hes a plow company all of a sudden. Most likely for a half of my bid.

    These lots must be pretty small to be only 60 a push huh? My average driveway is $50.
     
  17. EPPSLLC

    EPPSLLC Senior Member
    Messages: 209

    now thats the mind set im talkin bout!!!!!

    Good for you bro!!!!!
     
  18. merrimacmill

    merrimacmill PlowSite.com Addict
    from MA
    Messages: 1,822

    Thanks, but unfortunately it has become quite apparent to me the more I get into commercials how hetic this "lowballing" really is. I've been sitting around on this forum for awhile now reading all about the lowballing, but had never really experienced it since I was doing mostly residential drives and I have found there is not much competition for that around here. Now that I'm more heavy into the commercials, this whole thing seems to be out of control and is really beyond frusterating. I know that this is not news to most of you guys already on here though.

    And I have found that I am in fact more expensive than a few of the guys around here. But I have also found that lots of people this year have had no problems paying a little more for my company when I show up on time for the meeting, present a professionally laid out and packaged proposal packet with a list of references, and all the information they could possibly need about the snow removal procedures is typed out right there for them.

    What goes around comes around though, and fate will take care of the lowballers sooner or later!:waving:
     
    Last edited: Nov 27, 2008
  19. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    There is a quote running around on PS about the sweetness of low price and the bitterness of poor quality.

    The problem with low ballers or people that do it for a lower than average price is that when one goes away because he isn't making money, two more step into his place the next year.
     
  20. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    What came to mind when I read this is get your proposal packet back from them. They could use it in a way that you would not like. my 2cents.

    There is a quote running around on PS about the sweetness of low price and the bitterness of poor quality.

    The problem with low ballers or people that do it for a lower than average price is that when one goes away because he isn't making money, two more step into his place the next year.

    I don't mind being beat out by a large precentage of the bid. Like if it was for 100 and someone comes in at 50. But when someone comes in at 95 and the company goes with them, then it tells me that they are only out for money and it doesn't matter if you do a GREAT job on the lot.