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Lowest minimum you have seen

Discussion in 'Commercial Snow Removal' started by RCSIndiana, Oct 25, 2010.

  1. RCSIndiana

    RCSIndiana Junior Member
    Messages: 12

    I have got a few bids back that I didnt win. The winning amount was revealed and I was shocked. These are small lots maybe 20 mins pushing max. The winning bids were 20 and 25 dollars. These are commercial lots in town. I have always just bid with a minimum in my head but wow. 20 bucks as a minimum?
     
  2. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475

    Maybe theyve got an in with the owner/manager and do others for a real price? Though, that could be $75 an hour, thats the rate for some, apparently.
     
  3. cold_and_tired

    cold_and_tired PlowSite.com Addict
    Messages: 1,246

    That is ridiculous!!

    I don't have any stories about snow but last year I bid a park construction at over $400k. The winning bid came in at just shy of $200k. My material cost was more than that. Everybody else had a bid over $300k.
     
  4. PTSolutions

    PTSolutions PlowSite.com Addict
    Messages: 1,533

    there were 5 lots next to each other that i bid on, 3 of em done by the same company and each place said they were crappy.

    calcd out my bids, then took some off of that. submitted my bids and was told they were staying with the current company and we were high. that current company isnt a fly by night op either.
     
  5. ajslands

    ajslands 2000 Club Member
    Messages: 2,033

    Maybe Your price was high and there's was right on. Let's see a picture of the lot :)
     
  6. ajslands

    ajslands 2000 Club Member
    Messages: 2,033

    I have a minimum of 20.
     
  7. ColumbiaLand

    ColumbiaLand Senior Member
    Messages: 790

    Minimum price to drop a plow anywhere in our service area is $45.00. It is told on the phone or in person when they ask. We are a dependable and reputable company with good service and I know that. If they are not happy with the price they can move on to uninsured joe and his old rusted out truck with an inspection that is 6 months expired!
     
  8. xtreem3d

    xtreem3d PlowSite.com Addict
    Messages: 1,548

    how'd the job turn out?
     
  9. shooterm

    shooterm Senior Member
    from Midwest
    Messages: 260

    Could be something as simple as a large outfit is right next to the area and they'll blow through it in a min. We did a Shopping mall that had a bank right next to it. Was eight stall parking lot with a drivethrough. Way the parking lot was setup in the mainthrough we took michigans through it as we drove in so snow was out in basically a couple secs. Drivethrough was a one teller basic circle so took a small salter truck about two mins on two passes. Alittle secret but the lowballing has been rampant for the last half decade. No construction companies even touch snow anymore its just shining 3/4 tons and 14 hours of work.
     
  10. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    From my understanding in our area construction co's are GETTING into plowing because the outlook for constructions jobs isn't that rosey either

    And on a side note, I wouldn't drop my blade for that $20 min..... hell you can do driveways and make more then that!... just my 2 cents
     
  11. shooterm

    shooterm Senior Member
    from Midwest
    Messages: 260

    I really dont believe that construction companies are "moving" into snowplowing. Prices are far below equipment hour pricing. Some still hanging around though. We only have one construction outfit in town that plows a brinkman facility see how long this last because last I heard this was aboot done. There is no stability in the strip mall management either with investor/developers changing every six months. I'm not doom and glooming either I just think we have alittle industry lag that will correct itself.
     
  12. DirtyJerzey

    DirtyJerzey Senior Member
    Messages: 358

    Lowered my minimum to $75 for 1-3", used to be $150 minimum. Only reason I did that as I have some small doctors/dentist office type places that we landscape for and these are between other larger accounts so virtually no travel time as these accounts we pass on the way to our large accounts. Granted these are parking lots that take maybe 10-15minutes. I make the money on the salt/calcium and during the landscape season for these small people. Way I look at it, better to be in the customers eyes all year round then risk some other LCO trying to get their foot in the door.
     
  13. RSL

    RSL Junior Member
    Messages: 3

    i wouldnt get out of bed for 20 bucks ttheres alot of cheap guys out there lets see when they wipe out there front end or tranny
     
  14. Reliable Snow and Ice

    Reliable Snow and Ice Senior Member
    Messages: 981

    what do they make like what 300 bucks per snow fall... insurance costs more then that
     
  15. mullis56

    mullis56 Senior Member
    from Indiana
    Messages: 824

    We picked up several sites this year that are like someone described above already, very small. We have hand crews and plow trucks drive right by 98% of the sites and within 1 mile of the other 2% of the sites. Plowing is at our respective hourly rate for large sites even though the plowing is a 1/4 hour, hand work is priced out at hour normal rates and ice melt for walks is priced out alike.

    In our opinion I'd rather have our salt trucks stop and drop 200-400 lbs of salt at the sites 20+ times per year then not and we priced them as such.

    Another contractor who had them called and bitched at us about the pricing on them and I told them same thing, sometimes size, trucks and economies of scale are at work. Bottom line it is a several thousand dollar account per salting event and decent plow account, and we will make good margin due to our size and coverage area.

    We couldn't make good margin if we didn't drive by them already, ran tail gate spreaders, etc., but fact of the matter is that we will make it work due to the fact we go right by these places already and have the resources to make it work. Plus we are making very good margin that you couldn't do if you ran tailgate (non-bulk) or didn't have the trucks and hand crews in area already, plus the company gets one point of contact and same service levels at all sights at a lower cost to them.

    My point is that someone else's minimum is different then someone else, but ours is much higher then $20 or $25, but you see the point!
     
  16. Pinky Demon

    Pinky Demon PlowSite.com Addict
    from Ohio
    Messages: 1,121

    I'm with AJ, lets see some pics.