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Insane Pricing........ I've seen low prices, but c'mon now.

Discussion in 'Bidding & Estimating' started by OsU1997, Nov 21, 2013.

  1. OsU1997

    OsU1997 Junior Member
    Messages: 16

    Is this becoming more and more common? Where a contractor would bid over 500,000 sq ft of plowing on numerous lots spread over 12 miles coupled with almost an acre of sidewalks for close to $30 an acre to plow. I've been a part of this game for 20 years now. So, I've seen the good and bad. But the bid pricing that I'm running into is just ugly. Our pricing has been successful on commercial/residential bids for the entire time I've done this. But, we're getting cut by between 30% -50% across the board. If this is the way that it's going to go in our area, there may be some real nice Boss and SnowEx equipment for sale next year. Ok, I'm done with the rant. I'm just curious As to what everyone else is seeing this season.
     
    Last edited: Nov 21, 2013
  2. Dogplow Dodge

    Dogplow Dodge PlowSite Veteran
    from NJ
    Messages: 3,043


    You obviously don't spend a lot of time on this forum, as if you did, you'd find multiple threads with the same theme. :(


    IOW, no it's not just you..... stop being so selfish thinning it can only happen to the one and only you.....


    :laughing:
     
  3. OsU1997

    OsU1997 Junior Member
    Messages: 16

    Yeah, sorry for not living in here. I never said it was only happening to me. In fact it's every where in our area. Also, for you to call me selfish is completely out of line. You don't know me, so don't pretend to. This is a big reason why I don't spend anytime here, everyone is quick to judge to make themselves feel better. Best of luck to you....
     
  4. dieselss

    dieselss PlowSite Fanatic
    Messages: 11,005

    Easy killer. Dog was just joking saying your wrong if you think low ballers are only happening to you. Lighten up alittle
     
  5. TJS

    TJS PlowSite.com Addict
    Messages: 1,346

    This lowballing is happening everywhere. I plowed a small business parking lot for a while now. PITA, buildings on each side of the main enterance, cars always in the way, dumpsters in the way. Got a 100.00 base and tiered pricing from there. He calls me this year and told me someone can do it for 45.00. Not even worth warming up my truck for that.
     
  6. OsU1997

    OsU1997 Junior Member
    Messages: 16

    That's where I'm at with the current pricing. I can add more landscape crews and sell more work in the summer and forget about the snow. My wife said today, lets go on vacation in the winter and let the scabs race to the bottom. As it stands now, I can't even cover basic costs on these bids.
     
  7. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,923

    Welcome to late 80's\early 90's pricing all over again.

    We can thank NSP's and a certain snow "god" from Erie for turning a service into a commodity.
     
  8. Buswell Forest

    Buswell Forest PlowSite.com Addict
    from NH
    Messages: 1,668

    $30 an acre....When they called looking for subs, I'd tell them "$35 per acre!"...
     
  9. Dogplow Dodge

    Dogplow Dodge PlowSite Veteran
    from NJ
    Messages: 3,043

    Yeah.... what he said.

    The OP is Threatening to close shop because of low ballers, and that's what folks have been talking about a lot here. OMG, I tried to lighten up the situation... I'm a bad man ! Forgive me for you being so sensitive.
     
  10. OsU1997

    OsU1997 Junior Member
    Messages: 16

    No kidding. I'm not worried about it. We're just going to keep providing top notch reliable service for a decent price and stick to the business model. Unfortunetly, with pricing models like everyone is seeing the only ones that win are the property owners. Maybe I should start buying real estate. Hmmmm.........
     
  11. maxwellp

    maxwellp PlowSite.com Addict
    Messages: 1,112

    I run into this all the time here in WI. I started bidding high 4 years ago. Sell them on service. "Would you like it done today or a few days after it stops snowing?" If they go with the low ball guy, they will notice who is taken care of and who is not. Some call and sign up for the next year after having really bad service from the low ball guy.
    Don't be that guy. BID HIGH and stay there. :)
     
  12. MSsnowplowing

    MSsnowplowing Senior Member
    Messages: 710

    Sounds like almost every single gas station around here.

    I gave up bidding on them because of that.
     
  13. jrs.landscaping

    jrs.landscaping Senior Member
    from Maine
    Messages: 640

    We're getting outbid by 40 - 70% on bids. The best was a 1.75 acre lot that was bid for $125 PER STORM I wonder how they did during the blizzard last year :help:
     
    Last edited: Nov 27, 2013
  14. horizon jay

    horizon jay Member
    Messages: 99

    I was bidding $75 an acre and got asked are you serious? UM yes thats why I said it. I have said GOod Luck to alot of people this year... Good Luck!
     
  15. rjigto4oje

    rjigto4oje PlowSite.com Addict
    Messages: 1,298

    That's what happens when you let crackheads out of jail and we leave our borders open. To anyone and no I'm not a racist I don't even like myself
     
  16. OsU1997

    OsU1997 Junior Member
    Messages: 16

    This year has been a crazy year already and it isn't even Thanksgiving yet. We've been getting cut badly on our quotes, but yet we received a call from a google search for a commercial property. I bid it higher than usual and got the contract on the spot. It just makes you wonder about how and why some things happen. There may still be hope in this trade.
     
  17. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    I just got asked to plow a 12 + acre lot with over 1000 foot pushes for 39 dollars an acre, and 92 dollars per ton for salt. I said good luck on that by the way.
     
  18. maxwellp

    maxwellp PlowSite.com Addict
    Messages: 1,112

    I don't price by the acre but this got me thinking. Most of what I plow are upscale country houses but I do have some small lots. The largest being just under 1/2 acre or 21,000 sq feet. I get $76 to plow this. So at that rate I am at $162 an acre.

    I would stay home for $30 - $40 an acre, just saying. :)
     
  19. Chineau

    Chineau Senior Member
    Messages: 447

    In any business there are people at the bottom end of the scale that is how they operate, don't worry about them bid properties with your numbers to run your business. Then do what you say you are going to do and do it to the best of your ability. You will gain customers that will never leave you, some people deserve the mart,mart way i do not want them send them to low ballers and the hacks. Good luck.
     
  20. CT-TILEMAN

    CT-TILEMAN Member
    Messages: 61

    I plow by the hour on commercial............$125/hour plus salting.

    CT must be a better state to plow in that other areas.

    Good Luck to all this season