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Walmart-ish store bid results

Discussion in 'Commercial Snow Removal' started by sk187, Aug 31, 2010.

  1. sk187

    sk187 Senior Member
    Messages: 319

    I just saw the bid results for a very large Walmart type of store in Michigan.

    It was a reverse live online auction which basically means you can all see each others prices and keep bidding lower then the next guy (eBay in reverse).

    I cannot say exactly what store or the exact prices because I'm sure somewhere in the 12 pages of legal paper work it would forbid it.

    Plowing the entire lot including a gas station, sidewalks, and pharmacy drive went in the $500 - $550 range. This requires at minimum one loader with box and a few trucks and the price had to be good for 2" - 7" of snow.

    Salting the entire lot takes around 12 tons of salt (using spreading rates I found on plowsite and what I have actually found in the field). Entire lot salting went for between $500 -$550, considering my price this year from the distributor is $70/ton to do it correctly would be $840 in material alone.

    Pickups with a plow went in the $27 - $31 per hour range.

    Heavy trucks with large plows (dump trucks) were $45-$50/hr range.

    Loaders with a box were in the $85-$89/hr range.

    I am sure my bids are far more accurate than most of the other bidders as we actually go to the site and measure everything and determine where to stack, then go to the our office and run the entire blue print on a cad machine.

    We were destroyed with out prices and I usually have fairly competitive prices.
    Last edited: Aug 31, 2010
  2. cold_and_tired

    cold_and_tired PlowSite.com Addict
    Messages: 1,246

    Sounds like you may have a good chance at getting the contract mid season if these yahoos cant get it done.
  3. 09dieselguy

    09dieselguy Senior Member
    Messages: 279

    that is a crazy cheap price. it should be more then that a push.

    MIDTOWNPC PlowSite Veteran
    Messages: 4,422

    so this was actually done online... some sort of website? do you only get 1 bid or do you get to go lower and lower and fight for the scraps?

    how do you know that the others actually exist and it wasn't just faked... I mean this would be quite the technique buy the customer but its like the car salesman that calls his wholesaler to see what he can get on your trade in and really is leaving a really long messege on his own voice mail.

    Sorry to hear you didnt get the work.
  5. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    I have heard of that type of bidding procedure before. Crazyness IMO.
    Are you suggesting the property was 36 acres (+/-)?
    What are these guys thinking?
  6. Matson Snow

    Matson Snow PlowSite.com Addict
    Messages: 1,985

    Meijer stores have done this type of bidding for years....They get what they pay for...As for salting....they salt the isles and thats about it....:dizzy:
  7. sk187

    sk187 Senior Member
    Messages: 319

    accidental post, see next post.
    Last edited: Aug 31, 2010
  8. bike5200

    bike5200 Senior Member
    from Ky
    Messages: 437

    A lot of commercial construction work is bid that way
  9. sk187

    sk187 Senior Member
    Messages: 319

    The others exist its to big of a store to fake it and I came in like 5th out of 11 if you average out all the pieces to the bid.

    The bidding is done online just like bidding on eBay. There are basically 8 items or so (salting, trucks, loaders, exct..) and you can see the current low price and you just have to under cut them in $1 increments.

    I started my loader price at $125 and was 3rd and $100 was first so the next guy lowered his to $99 then someone else lowered theirs to $98 and so on.

    The auction was supposed to be 15mins but if a bid comes in with less then 2 mins, 2 more minutes get added for as long as it takes.
  10. sk187

    sk187 Senior Member
    Messages: 319

    I will have to look, I bid a few stores and im not in the office right now to check the sq ft.
  11. mullis56

    mullis56 Senior Member
    from Indiana
    Messages: 824

    It is Meijer and they aren't that big but they get cheap for sure!

    MIDTOWNPC PlowSite Veteran
    Messages: 4,422

    That is insane. I have never heard of that but I also don't have many big places.
    I would really like to see the format of the website. Someone screenshot one next time.
    This tendering process is very popular, It not like when your shopping for a truck and you check out a few places. Im really picky on what I want to do to make money and I just couldnt even imagine this... ontop I don't think I could even look at the guy that won if I ever bumped into him, I would just shake my head.

    Is it that no one has any work and they are going to lose their machines to the bank, if they don't make some payments or something so they are putting them to work for basically nothing but just to get some cash flow to stop the bleeding?
  13. sk187

    sk187 Senior Member
    Messages: 319

    Its just a list of all the items for bid and your price and the current low price with a timer so you know when the bid is over.

    When the bid is done the store evaluates it and decides who is the lowest over all and tells you when to start.

    This store has used the system for a while I know I have bid using it a few times, this year was just lower then usual.
  14. dlcs

    dlcs 2000 Club Member
    Messages: 2,142

    Home Depot, Lowes, Menards etc. have been using this online system since at least 2003 for their product suppliers. They have drove many suppliers out of business with this system of online cut throat bidding. Now they are doing this crap with the little guys for snow and lawn services, f- them.
  15. plowatnight

    plowatnight Senior Member
    from Mn
    Messages: 305

    I'm w/ you buddy, I'm pretty friking resourseful, If it comes to that here in my world, I'll gladly stay in bed on those winter nights and maybe start selling tacos or try to convince the wife to get a second job.
  16. bullettooth81

    bullettooth81 Senior Member
    Messages: 103

    If you figure out how to get your wife convinced into a second job, would you be willing to share?

    That's a rediculously low price on that kind of area. You do get what you pay for! All people look at is the $$$$ and not the quality the past few years.

    :salute: ussmileyflag
  17. cold_and_tired

    cold_and_tired PlowSite.com Addict
    Messages: 1,246

    You're right. I can stay home and go broke a lot slower than going broke plowing snow.
  18. plowatnight

    plowatnight Senior Member
    from Mn
    Messages: 305

  19. TCLA

    TCLA 2000 Club Member
    Messages: 2,696

    Reverse auctions are evil. :angry:

    I think the cutthroats are the only ones who enjoy them.
  20. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    You should be thrilled
    One of your competitors is now busy working for free (or paying to work honestly, $500 for a lot that size?????? ridiculous)
    now they can't take on other profitable work, that you can.

    idiots everywhere.