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Penny Pinching!!!

Discussion in 'Commercial Snow Removal' started by big acres, Dec 12, 2007.

  1. big acres

    big acres Senior Member
    Messages: 653

    Any of you guys noticing customers passing on extra service that they have had for years? Money is tight everywhere, and I'm noticing people would rather lose a few parking stalls this year beofre shelling out for skid work.

    I signed a few apartment buildings which are not going well, apparently the schmoe who had them before us had no other customers and could spend HOURS on each. They are expecting to have a truck carry snow 100's of yards and around tight corners, and then ram it over a curb and way back so they never have to spend a dime on skid work. I have these bid at two hours for open-up and final clean to curb COMBINED and with truck only, and I met these goals. This is going to get sticky.

    Who else has a new cheapskate this year?
     
  2. NLS1

    NLS1 Senior Member
    Messages: 315

    Hope it works out better as the season goes by.
    Residential has been more profitable than commercial lately it seems, in a lot of areas in the Twin Cities for me anyhow. It just seems that commercials don't tell you the whole story some times until the season starts and of course it involves more time on your part, and they expect it for the same price...right.
     
    Last edited: Dec 13, 2007
  3. powerjoke

    powerjoke PlowSite.com Addict
    Messages: 1,341

    as soon as a new administration gets in office we'll be fine, the one we had just froze interest rates on the A.R.M. notes:dizzy: we are going to have a bigger prob. in 5 years. it may help with repo.s but kill the investments and the american $ a little more. (but i guess that builds government stability:rolleyes: )


    i have notticed the penny pinchers worse this year than previous too.

    in dirt work we only do commercial and industrial work no residential. i have seen about a 50% drop in work this year, around here nobody's building anything. only the guy's buying themselves jobs(developer's) are the only one's with work. i am hoping for a bad weather winter but we'll see.

    i had one very regular industrial customer that squaked about a bill and has NEVER done that before, i offer 2% off if paid within 10 days and 3 weeks after bill cycle they finnaly cut a check and wanted the 2%off, i gave it to them because they are regular's, but YES i have noticed money being tighter

    Rick
     
  4. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,045

    The schmoe that did it before must have done a good job. Did you under bid him or did he give it up.
     
  5. big acres

    big acres Senior Member
    Messages: 653

    JD Dave

    HE DIED.... Heart attack, probably from doing all that free work and wondering why he couldn't make ends meet. Sure he did a good job. If you go well beyond the contract (theirs) which states curb-to-curb and move and stack piles for free well beyond the curb, I guess that would make a good job in the eyes of the customer. Generally, here in the twin cities, per-time costs include curb-to-curb. We get PAID to go beyond and we do not lowball. This is more a case of an ultra-cheap management company who does not recognize the generally accepted standards in our market.
     
    Last edited: Dec 13, 2007
  6. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,045

    Well I'm sad to hear he died. I wasn't trying to upset you,I just wanted the story behind the place and underbidding isn't lowballing IMO.
     
  7. big acres

    big acres Senior Member
    Messages: 653

    No problem, it just came across wrong. It is sad about that guy. When he didn't show up for work, his #1 guy went to the house to find his two year old daughter sitting next to the body. I never knew him... but still sad. He was pricing his mowing at 1/2 of my intitial bid on these properties, which probably created a lot of stress.
     
  8. iceyman

    iceyman 2000 Club Member
    Messages: 2,538

    mine as well put that girl in some counsleing now. sad story
     
  9. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    Big time, the summer season was also the same.