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Where do these people come from

Discussion in 'Commercial Snow Removal' started by mpriester, Nov 13, 2014.

  1. mpriester

    mpriester Senior Member
    Messages: 394

    A client calls and says we have another contractor looking to obtain our lot but we want you if you can match their price(i have been doing this lot for 3 years). I ask how much lower are they than me and she says around $100.00. My next question is what is their price and she says they are using 150lbs of salt and i say stop there, You mean to tell me they are going to salt your 55000 sq. ft. lot with 150lbs of salt. I explain to her the industry standard for salt per square foot and tell her how much i apply. She calls me back 5 minutes later and says thank you for enlightening us and that i have the contract.
    If this guy is pricing lots this cheap myself and other local contractors will probably be getting calls from potential clients because this guy will go bankrupt before winter even gets started.
    Sorry if its a little long winded but i had to share this.
  2. elitelawnteam1

    elitelawnteam1 Senior Member
    Messages: 164

    That's a lot of pavement for only 3 bags of salt:dizzy:

    They may come from springfield

    Last edited: Nov 13, 2014
  3. JustJeff

    JustJeff PlowSite.com Addict
    Messages: 1,940

    Your point is???
  4. Citytow

    Citytow Senior Member
    from phila
    Messages: 548

    when you go to shop for a new truck , do you look for the best deal or just buy the first truck you see ???
  5. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,447

    If you have to ask...........

    OP, apparently this guy attended a John Allin seminar, as he is telling contractors 70#/acre is sufficient.
  6. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,990

    @44K sg ft an acre that's 1.25 acres with an application rate of 120 lbs per acre, while not near enough material for AFTER storm applications it is right on the guidelines for pre application rates at >30 degrees.
  7. Chineau

    Chineau Senior Member
    Messages: 446

    Hey Basher is that like 30 degrees below zero?
  8. LapeerLandscape

    LapeerLandscape PlowSite.com Addict
    Messages: 1,457

    Think of how many people don't communicate well like both did in this case and let the new guy just have the job. That's whats really sad.
    Last edited: Nov 14, 2014
  9. mtnbktrek

    mtnbktrek Senior Member
    from NEPA
    Messages: 144

    Funny u say that just yesterday I got a response for 2 bids I did lady said they r gunna stick w usual guy. I thought I had them for sure bc the lady said they lay too much salt ,showed up very late , and their price was higher I was just going to let it go but I fig heck the lady was nice enough I'll ask what she didn't like. She said it came down to $ they were cheaper on sidewalk but we were cheaper on plowing and slightly cheaper on salt. Now I bid it high bc I really didn't want it but if I got it it'd b worth it. So she asked me to lower my price across the board 10% and she's sign a contract that day. I refused and told her salt price went up since I put the bid and it is a fair $. Today I get a call from a higher up asking if I was going to get a contract over to them after confusion cleared the lady said don't listen to her I don't know why she got involved. Anyway moral is follow up and women - can't live withm wouldn't wanna live wout them. - saga over btw that's the cliffs notes version.
  10. LapeerLandscape

    LapeerLandscape PlowSite.com Addict
    Messages: 1,457

    I will never understand why they put people in the decision making process that don't have a clue.

    FISHERBOY Senior Member
    Messages: 542

    All the responses sound like my property manager, she has said over the years they will go with the lower price no matter how long I've been servicing them, Oh well next season i'm preparing to go back to small commercial lots
  12. JimMarshall

    JimMarshall Senior Member
    from NW PA
    Messages: 785

    It's baffling. Or like the guys around here that will underbid me on a per service price but then service 3 times as much.
  13. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,990

    Damn that new math I always thought > meant greater than
  14. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,447

    He's Canadian, and you weren't referring to beer or hockey so cut him some slack.
  15. Defcon 5

    Defcon 5 PlowSite.com Addict
    Messages: 1,512

    70# an acre is plenty........If you have all day and the sun comes out and the temps reach the low fortys......:drinkup:
  16. GMC Driver

    GMC Driver Senior Member
    Messages: 706



    I think Monday will be an interesting day here. We were asked to provide a quote for a facility (new owner, we serviced about 5 years ago under previous ownership) and we submitted a competetive bid. Recieved an e-mail this afternoon that "no decision has yet been made."

    Should be interesting if we actually get what the guessers are saying - someone will have to dig there way in and make that decision very quickly!
    Last edited: Nov 14, 2014
  17. chesterlawn

    chesterlawn Member
    Messages: 87

    Not sure I'm reading this right but aren't you cheaper? Your price is $100 cheaper but you are putting down more salt.
  18. mpriester

    mpriester Senior Member
    Messages: 394

    my proposal is higher, my emphasis on the post was that another contractor was only applying 150lbs of salt on a 55k square foot lot making his overall bid cheaper and it included the sidewalks and handicap ramps. I use cc on the ramps and walks which is a seperate fee on my contracts. Just to let everyone know this is a Medical and Rehab Center and i take this lot very serious even sometimes over applying because i want it safe. I take all my clients serious but this one sometimes worries me.
  19. jerpa

    jerpa Member
    Messages: 92

    Why you gotta go and screw up my business plan? ;)

    He won't be out of business. This contractor was attempting to win the bid with his low salt price, then would have charged for 3-4x the number of treatments you would have applied, costing the customer substantially more over the course of the season. The upside is this leaves an opening for an honest contractor, often an oxymoron unfortunately, to provide better service with fair prices IF you can get the customer to see how they will actually save $$$ by paying more "Per Service".
  20. beanz27

    beanz27 Senior Member
    Messages: 984

    We've got a guy running around town here doing that same thing. Last year he had two accounts, this year he underbid one specific company on ALL properties.

    He tried to underbid a few of my accounts, got one, but I explained what he did last year to a some of my clients, and surprisingly they stayed.....for now. We'll see how well he does this year, going from 1 truck to apparently 6 trucks, 2 skids, a toolcat and one pay loader. I'll just make sure to keep my phone nearby when it snows.