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What a crazy bid

Discussion in 'Commercial Snow Removal' started by Scott's, Nov 14, 2009.

  1. Scott's

    Scott's Senior Member
    Messages: 416

    I was asked to bid out 2 appt complexes and was told I was bidding against the 2 biggest snow contractors in my area ( I was very proud to be one of the 3 asked ) but I am also very close to being booked up for the year so I bid it kinda high well quite a bit higher than I would of last month . Well got a call saying Im the contractor they are going with so far but need to bring it up a a meeting this next week so I asked how close the bids where and the guy told me we where all within $20 of each other but I was the lowest so there giving me a shot. I was like HELL YA but then thought DAM I was the lowballer in the 3 bids. I raised the bid and kinda felt bad but still got it. About time I come out good on a lowballing deal lol.
     
  2. big acres

    big acres Senior Member
    Messages: 653

    No offense, but let's not get carried away with the term lowballer... I mean $20 on an apartment complex ain't much of a spread. Now the price you had before your raised it... maybe that's another story.
     
  3. Scott's

    Scott's Senior Member
    Messages: 416

    But I thought anytime your the lowest bidder the others will call you a lowballer but :D

    This has just been a crazy season so far and it hasnt even snowed yet.
     
  4. Silentroo

    Silentroo Senior Member
    Messages: 147

    Scotts

    You are actually a lowballer when ever you take a property. Even if you charge more.

    At least that's what people call me.....
     
  5. Burkartsplow

    Burkartsplow PlowSite Veteran
    Messages: 3,245

    I have heard that also about being a lowballer because I took somone elses lot. I was in the middle of all the prices as well which is usually the fair price in mose cases. Well I am glad you are back on your feet after losing all those other ones. On Friday I picked up 3 rite aids and a nice 2 acre lot across from my shop. I lost some big accounts to "lowballers" well 5 of them was half of what i was charging the last 3 years.
     
  6. KBTConst

    KBTConst Senior Member
    Messages: 426

    A lot is going for $100.00 per push and someone comes in and bids it for $35.00 thats what i think is a lowballer.
     
  7. Silentroo

    Silentroo Senior Member
    Messages: 147

    I disagree.

    What if his costs are $20.

    I know lots of landscape companies who are taking the attitude that I will make 55 an hour subbing so why not bid there? Are they lowballing if the work was going for 100 and they take it at 55. They have the same costs and same quality as if they were to be subbing for the guy at 100. Secret is often when a sub works for a bigger guy he does not own all his equipment but is paying some other friend 40-50 to work for him. So really often When I am charging the customer 100 to do a lot there is a guy actually plowing it for 40-50. and 2-3 guys making 10-15 off him.

    Is the guy at 40 who is doing the work a low baller if he gets the lot next year at 40. He is making the exact same money he did last year for the same work?

    Too often we assume our costs are everyone else's costs as well.
     
  8. Silentroo

    Silentroo Senior Member
    Messages: 147

    Burksartplow

    "I was off my feet"

    Is there something I should know?
     
  9. FEFMedia

    FEFMedia Senior Member
    Messages: 212

    I was going to mention cost also.. does skill come into effect also?

    $20 isnt a lowball in my opinion.. hell thats like saying you can do the lot 15 mins faster.. thats all..

    Yeah they said $20 was the deciding factor.. but if your contract is easier to read and or your company information helped sell your job.. those little things go a long way!
     
  10. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    good job on the apartment complexes Scott. i think lowballer is a over used term, personally i think a lowballer is anyone that goes immorally/malliciously acquires accounts. you don't necessarily have to give a lower price to be a lowballer, the best one i have heard so far had to do, with a municipal bid, a secretary who was a relative of one of the contractors bidding, and the loss of another contractors bid. When all the bids came in she ditched the lower competitors bid, (just threw it out) so that her cousin's bid was the one accepted. there was a investigation and she lost her job. Lowballers, are just contractors that well do whatever unscruppleless things they can to get a job
     
  11. Comet

    Comet Senior Member
    Messages: 160

    I agree with Buckwheat la 100%
    Good luck Scott with the 2 complexes
    Will they be paying you regardless if it snows or not?
     
  12. cubicinches

    cubicinches PlowSite.com Addict
    Messages: 1,412

    I agree.

    Sometimes, somebody just plain old beats your price... welcome to the business world!
    I don't lose too much sleep over it. Over the years I've found that sooner or later, the guys who work for nothing either get out, or get with the program as far as pricing when they realize they're not making any money. No sense in getting all worked up about 'em. Just keep going and, eventually, they're gone. After 21 years, I like to call it "outlasting" them. I've told a couple new guys in my area to remember this: "I was here when you got here, and I'll be here when you leave" :D

    Anyway, that's just my take on the whole lowballer thing.

    Congrats on the apartments Scott. :drinkup:
     
  13. wirenut

    wirenut Senior Member
    from nh
    Messages: 514

    if 20 bucks is that important to them good luck cause i see a big pita there....
     
  14. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,754

    That's one thing I have found about bidding. It really depends on who your bidding against. Sometimes you bid against companies that may be cheaper because they take on work to "keep" their good workers they have over the summer. Others may have a small operation, but do top notch work, yet be more expensive. With the size of my business right now, I don't see the point in bidding on some jobs where I can't get "my" price for it. If I have to buy equipment, compete with a lower bid, and hope it snows, well that's not a good business plan. Anyways, congrats on the job! Good thing you raised your price, otherwise you woulda been kicking yourself. lol
     
  15. Scott's

    Scott's Senior Member
    Messages: 416

    The way I look at it is I have worked hard to be one of the top contractors in my area and now people are seeing my trucks and hearing good things about me. I would like to think they picked me because they want to give me a shot as they have used the other 2 in the past not just because I was $20 cheaper, these places are big and I would think the work they need is worth more than the $20 saving.