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Meijer Online Snow Removal Auction...

Discussion in 'Commercial Snow Removal' started by Skaggs Lawn Care, Sep 28, 2005.

  1. Skaggs Lawn Care

    Skaggs Lawn Care Junior Member
    Messages: 22

    Did anyone participate in this online bidding war yesterday?

    For those of you who don't know, Meijer put their properties for snow removal up for bid on the internet (first time). Contractors submitted initial bids a week ago with the opportunity to lower your own bid during 15 minutes of bidding yesterday. There was no bidding to it because the low quotes were insane. When the low quotes popped up, we started laughing.

    Example: A 14 acre lot went for $300 (plowing entrances, exits, pharmacy drive-through, fire-lanes, main drive aisles, front of store drive aisle and primary customer parking drive aisles, sidewalks and 90% of gas station) for a day plow. For a night plow (plowing 90% of lot and gas station), that same property went for $945.00.

    Basic salting (salt entrances, exits, pharmacy drive-through, fire-lanes, docks, main drive aisles, front of store, sidewalks and 90% of gas station) was bid at $295.00. The entire lot was bid for $810.00. 14 acres!!!!

    How does this contractor expect to make any money? He must not have a family to feed and likes doing charity work.

    I cannot wait to see these properties after a 6 - 8 inch snow!!! Last year, they were in terrible shape.

    If this is how Meijer will be doing the bids next year, they can forget about us spending unproductive time on something so ridiculous.
     
  2. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    Thats funny, you'll have to keep us posted on how they look after that big snow fall. Maybe he does'nt need money, just something to do. :rolleyes:
     
  3. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Something to do? Fourteen acres? That's more than "something to do". I've been figuring what it would take to plow this 14 acres and salt the traffic areas noted - including the cost of the salt - and all I can come up with is "this guy must know more than I do". For basic plowing, I'm figuring three trucks with operators taking 3 - 3 1/2 hours each, one loader and one dump truck with operator, as needed. One truck also has a salter and two guys with push salters to salt walkways.

    Hard to tell without seeing it, but maybe one yard of salt?

    $300 wouldn't even cover one truck for the 3 1/2 hours. Oh, well, stick with my philosophy - At least he's out of the way. Now get something else at your price. At that rate, you won't have to worry about him next year. He'll get rid of his stuff and be complaining that "There's no money in plowing snow".
     
  4. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

     
  5. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Still don't see how it could possibly be done for $300.
     
  6. jbutch83

    jbutch83 Senior Member
    Messages: 227

    I had the same thing happen to a friend in the business. Took care of a large factory in town for the past 15 years. Averaged out all of the pricing over those years, avereaged nearly $40,000 a year to maintain the proptery, and there was never any complaints. They did the internet bidding last year, and he lost the property. The low bid was at $12,000 for the year.
     
  7. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,905

    Same way you get "I've never plowed before, just got a pickup with a 7.5' plow, what should I charge for a 14 acre lot?"
     
  8. hickslawns

    hickslawns Senior Member
    Messages: 619

    I didn't bid on this, but had the opportunity. I just ran out of time. I wanted to put in the initial bid just to watch where it ended. They did the same thing mowing. It was ridiculous. I don't see how the guy covered his fuel and payroll (well he does pay them cash local rumors say), but this doesn't allow room for equipment, insurance, and I don't know. . . maybe. . .just maybe . . . profit should be figured in there somewhere. :)
     
  9. AintNoFun

    AintNoFun Senior Member
    Messages: 175

    iver never seen bidding like this, what was the website how did it work?
     
  10. JennyB

    JennyB Junior Member
    from SE MI
    Messages: 12

    It was the same bidding process for lawn care. I sat and laughed as people underbid each other until some of the stores went for $75.00 per cut. Totally unbelieveable.