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New lowballer in SE WI

Discussion in 'Commercial Snow Removal' started by jimspro, Nov 9, 2009.

  1. jimspro

    jimspro Senior Member
    Messages: 200

    My brother just lost a bid on a commercial lot that is approx 28,000 sq ft. and pretty much a straight push type. the guy bid it @ $300 per month including salt ,regardless how much snow falls. Don't know how he can make anything on it unless it doesn't snow at all in Wisconsin, ya right. Prices like that make us with legit overhead costs look like rip-offs.
     
  2. snowguysandgals

    snowguysandgals Junior Member
    Messages: 1

    wow around here thats like a 300 per push min. If not more. Thats crazy
     
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    He sounds to low.

    Sounds like your to high.
     
  4. doo-man

    doo-man Senior Member
    Messages: 387

    I bet he bid it at $300 per push but the customer thought it was a monthly cost !! Just wait till he gets his first bill:realmad::realmad:

    Just tell yr bro to sit back and wait to the call the lowballer didnt show and make sure he up's his price, and tell him to payup when the money hits his hands !!!!
     
  5. nh785

    nh785 Member
    Messages: 71

    is yor bother premeir? similer thread but not the same story.
     
  6. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,752

    Someone is spreading salt here for $0.10/lb
     
  7. blowerman

    blowerman PlowSite.com Addict
    Messages: 1,261

    I know alot of guys that spread salt around us for .10 per lb.
    I'd love for the numbers to go up, but it seems like just the opposite.
     
  8. nh785

    nh785 Member
    Messages: 71

    $200 per ton is cheap? wish I got that. maybe what you guys call lowballing is really just more effeciency
     
  9. Premierplowing

    Premierplowing Member
    Messages: 40

    Yep....I'm the brother....didn't know he was gonna post the story.
     
  10. jimspro

    jimspro Senior Member
    Messages: 200

    the last load of bulk i got last year (and still have it) i paid $135.00 per ton plus delivery, i know it is a little lower now but 10 cents a pound is absurd
     
  11. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,752

    I'd say $200 is real cheap. It probably costs you at least $100 to spread when you figure in all your costs and wear and tear.
     
  12. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,752

    That's just too bad. Seems really cheap to me. Do they actually make money?

    I agree. I figure that account will get hit with a high "hourly" truck rate. I almost thought about telling the guy that, but didn't.
     
  13. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,954

    .10 a pound isnt really that absurd. The guys who are charging that arent paying even close to 135 a ton. they are probably paying closer to 60, or even less. If you spread 10,000 tons and put a penny a pound in your pocket thats 200,000, not absurd.

    if you want to talk about absurd, lets talk about the plowing rates around here, they are absolutely out of control.
     
  14. nh785

    nh785 Member
    Messages: 71

    brent if it costs $100 to apply and you charge $200 how can that be cheap? however if you apply 100# and only charge $10 you will go broke. I charge $150 per ton applied and a 1 ton min.
     
  15. jimspro

    jimspro Senior Member
    Messages: 200

    i agree that the prices around here are absurd, but what can we do, when these guys that have a 4x4 truck, are laid off and put a plow on it and are in business, no insurance, workmans comp, unemployment, etc,etc. but i don't know any body that was paying 60 a ton last year or after Dec. the season before last, the last 2 truck loads i got came from St. Louis, and was 135 plus delevery, and i was lucky to get it, 2 seasons ago i went thru 6 quads of salt, the first one was @ 50 per ton delevered, but went up from there
     
  16. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,954

    The problem (in my experience anyway) isn't bidding against the guy who has a 4x4 and is out of work. Its all the big guys whose prices are tumbling. One company in particular is really starting to grind my gears. The problem is, once the decision makers get these low prices, even if they get poor service, thats what they are going to expect in the future. When you buy salt by the barge or have huge negotiated contracts, they aren't paying nearly as much as everyone else.
     
  17. RichG53

    RichG53 PlowSite.com Addict
    Messages: 1,135

    Who is the new Low Baller in Town????????
     
  18. The mayor

    The mayor Senior Member
    Messages: 272

    I am also wondering.
     
  19. blowerman

    blowerman PlowSite.com Addict
    Messages: 1,261

    Lets just say there the initials are: w.s.
    And yes, Andy (Longae) is right. I, as well as a few other guys have said it isn't the little guy, it's this big company that is throwing out unreal low plowing prices. Salting at $.10 a pound I'm fine with. What I can't handle is estimating a lot where you should have a Wheel loader and one or two trucks to do a good job and the big guy puts out one or two subs for the night at half the rate I could work for.
    I pride my guys on the ability to do a great job and remove the snow off the lot, not just push it here and there for half the price...
    Maybe I should just join them?
     
  20. jomama45

    jomama45 PlowSite.com Addict
    Messages: 1,172

    Thanks for the clue Chris. :salute:

    The same company is just starting to creep into the edge of our area as well. I would tend to agree that they run alot of pick-ups where they could really benefit from bigger equipment. They do seem to pay their subs fair & on a good schedule, which suprises me IF they really are working that much cheaper. I think their bidding & billing system is more than likely "smoke & mirrors" though.

    On a side note Chris, we actually did some loader work for them last winter when they got into a pretty big bind. In Dec. when we were getting all the snow at once, one of their subs "gave up" on backdragging a bunch of loading docks & actually pushed the docks fairly full.:dizzy: Maybe the key is "joining" them? Have you ever thought of offering them loader service?