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why do people plow so cheap???

Discussion in 'Bidding & Estimating' started by MRUSSELL, Nov 8, 2006.

  1. MRUSSELL

    MRUSSELL Member
    Messages: 67

    Just curious and this has been bothering me for some time, recently i have been outbid on a couple of jobs that i had quoted i know that i am not cheap for the services that i offer and i also understand that even though i bid the job doesn't mean i am going to get it, i have just bid 2 huge lots two different businesses and the person that got the bid was exactly half of my price on these jobs. i was not the highest but 3 company's were all around the same figures within $100.00 dollars or so but not half whats wrong with people?? i guess some people lost the common sense factor!!!
     
  2. 2 Results

    Well, only 2 results can happen.
    1) Their rusted old chevy's break down and the business learns better next year.

    2) They beat their head on the dashboard all winter and dont do it again!

    Sorry man, that sux!
     
  3. FREDSKI

    FREDSKI Member
    Messages: 32

    I CAN TELL YOU THIS I KNOW A BUNCH OF GUYS THAT ARE LOSING THERE JOB AT A WAREHOUSE WERE I USE TO WORK MAKING 18 BUCKS HR. I GOT THE HELL OUT OF THERE 2 YEARS AGO. YOU CAN SAY I WASNT STICKING AROUND TO LOSE MY JOB. BUT ANYWAYS THESE GUYS WERE PLOWING PART TIME TO MAKE EXTRA MONEY NOW THEY HAVE TO PLOW AS MUCH AS THEY CAN TO MAKE MONEY THESE ARE THE GUYS THAT SCARE ME AROUND MY AREA. WHO GOING TO BE THE LOW BALLER OF THEM I KNOW A FEW GUYS THAT WILL IN A HEART BEAT.:gunsfiring: :mad:
     
  4. Quit Yelling!

    Your giving me a headache!!! :realmad: Quit Yelling!!!:yow!:
     
  5. ksgcapecod

    ksgcapecod Member
    Messages: 52

    I feel for ya. I was underbid by $30.00 on a assisted living complex I plowed last year. The head of maintenance said that there were no complaints about my service from anyone and the person in charge of that particular complex put in a positive recommendation. He apologized and said hope your back next year. He said the company wants to go with the cheapest bid. I guess thats what happens when the higher ups in a different state make the decision. I won't be lowering my bid next year but I will resubmit it. Ken
     
  6. jcesar

    jcesar Senior Member
    from Mi
    Messages: 492

    Some people need leadership, while other are born leaders. I got outbid on a huge contract, for my area, anyways, by a guy that bid 6k less than me. Here is the catch.
    My bid .... was for 9k.
    He thinks he can do it for 3?
    Ok
    Let him.
    Moral of the story, is I will almost guarentee that he can't and won't do it again.
    Sorry to hear of your bad luck. Better Luck with the next ones.
     
  7. procut1

    procut1 Senior Member
    Messages: 380


    Perfect example. Guys have an $18 an hour job. Well they get an account that takes an hour to do. Well they go and charge $50 saying "Hey I almost tripled my pay at my last job"
     
  8. NoFearDeere

    NoFearDeere PlowSite.com Addict
    Messages: 1,715

    Stupidity....:dizzy:
     
  9. gardenkeeper88

    gardenkeeper88 Senior Member
    Messages: 115

    Yea i'm struggling to get my currant customers to $65.00 / hour
     
  10. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Just hang in there. I've been plowing six years now and kept getting outbid by a big (for the area) construction company. He bid half of my bid for the local PO which irritated me. He had the town account for several years and was bidding driveways cheap so his guys could do them as they plowed town roads. Well, this year he lost the town bid!! Then he let his residential customers know he quit plowing, cause then he couldn't afford to run the equipment and pay the employees without the town contract. So now I'm one of several beneficiaries of his "demise". Now the problem is his old customers are getting "sticker shock". I've talked to a couple now who told me what they'd been charged in the past. But all the "plow guys" around here know each other and we're pretty well close in pricing to each other. There's one who was new last winter and got his start lowballing, but I think he's learned. The difference in pricing usually comes in the distance we have to travel, so we tend to have tight routes. I've even referred a few to other guys. I keep a list of out-of-town plow guys and of course know the locals. I've picked up several this year who told me they wanted me based on reputation - which is nice to hear.

    So don't let them get you down. They'll weed themselves out eventually.
     
  11. Rcgm

    Rcgm Senior Member
    Messages: 613


    That is exactly right.They also never figure everything insurance, taxes etc.I have seen it before they come they go.They by a snowblower they now have a snow removal division ad in the paper:D They go buy a Craftsman lawnmower and a walmart blower now they are a landscaper.I always want alot of snow in the winter because it is my only source of income.But about every 3 years I like a drought in the summer it gets rid of the lowballers in my area because I survive they can't with there 10 accounts and charging a buck 82 to cut a 30 dollar lawn.

    RCGM
    Brad
     
  12. LLM Ann Arbor

    LLM Ann Arbor Senior Member
    Messages: 876


    Because they dont pay either. I hate to say it either but theres a lot of guys that post here statisticly speaking that dont pay taxes and have never even called an insurance man for a quote.

    Hey Brad....If you ever run into any commercials or resi customers with a relative or branch in the Ann Arbor area in need of good service gimme a jingle. Snow, mowing, Fertilizing/weed control etc.



    xysport
     
  13. murray83

    murray83 Senior Member
    Messages: 420

    Reasons why people bid like idiots?

    -Never plowed before and have no idea what local going rates are
    -They bought a new truck and want an excuse to help with payments or an excuse to create a buisness and have write offs
    -Too lazy to prepare proper bids
    -No insurance
    -Seen a local contractor's prices and think they can do it for half and still profit

    Another big thing is some people have it in their head that any competition is bad and its not the case,I can work with anyone just local contractors want to cut each others throat and I can't understand why.My idea is bid on a job to your best ability and if I don't get it,I'd sub for whoever won it....I still get work from the job just not as much as if I did it myself.

    Welcome to the wonderfull world of snow removal.
     
  14. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

     
    Last edited: Nov 10, 2006
  15. Rcgm

    Rcgm Senior Member
    Messages: 613

    [....I still get work from the job just not as much as if I did it myself.

    Welcome to the wonderfull world of snow removal.[/QUOTE]


    WHAT :dizzy:

    Don't do that.Come to Indiana I will sub alot of stuff to you if you do good work for cheap.LOL

    I agree with mick I would NEVER work for someone that got a bid that I bid on for cheaper don't sell yourself short.

    RCGM
    Brad
     
  16. Rcgm

    Rcgm Senior Member
    Messages: 613

    Hey LLM

    I would be more than happy to send some work your way if I ever run across someone in that area.How far are you from Fort Wayne Indiana?


    RCGM
    Brad
     
  17. murray83

    murray83 Senior Member
    Messages: 420

    Interesting. You'd do it for less than what you bid if it was someone else's contract? Why not bid it for that to start with? I don't see how I'd ever work for someone to whom I lost a bid. If they hired me, they'd be losing money.
    [/QUOTE]

    What I mean is my backhoe is $100/hr my truck is $80/hr,I've had local guys bid $25 for a backhoe up to $75 for a truck with a sander,there is no way in gods green earth i'm going to lower my rate to match morons who bid low to get a job.My rates are my rates and I'm very willing to help anyone locally who needs it....at my prices.
     
  18. Snowman19

    Snowman19 Senior Member
    Messages: 323

    Lowballers need to be beaten with THE CLUB!!!!!!! I lose so much work because they think because they have a truck and a plow, they can just go around and steal our business. Given that you actually have a business and insurance.(Not directed at anyone specific) I Iost a BIG bid to someone that just got layed off from the shop and underbid me by half!! Im mad, Mad and Furious(it could almost be a movie title):gunsfiring: :realmad: :realmad:
     
  19. LLM Ann Arbor

    LLM Ann Arbor Senior Member
    Messages: 876

    2 hours Brad. Im actually considering maybe subbing for someone out of state in addition to my arrangements here since snow patterns sometimes hit that Indiana Ohio belt and miss me here on occassion.
     
  20. NoFearDeere

    NoFearDeere PlowSite.com Addict
    Messages: 1,715

    I think you hit the nail on the head.....:salute: