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Yet another wonderful story.

Discussion in 'Commercial Snow Removal' started by LwnmwrMan22, Nov 5, 2009.

  1. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 27,999

    The local school district went out for bid again this year.

    Second time in two years. Previously, the company had it renewed from year to year with no bid process, much like I do for the lawn work in the summer.

    2 years ago, the previous company, "A" was at $78.50 per hour, across the board for whatever piece of equipment.

    Last year, I bid at $90 per hour for truck or 2 speed skid with 8' V-plow.

    The other bids were at $75, $72, $74, company "A" at $73 (yes, they dropped their own rate after 10+ years $5.50 per hour) and company "B" at $60 per hour per piece of equipment.

    Well, company "B" got the job obviously leaving at least $13 per hour per piece of equipment on the table.

    It takes about 20-22 equipment hours to do the entire district.

    At the end of the year, the Business Services Director contacted me and said that company "B" had informed her that they were broke and selling their equipment, that they would not be able to service the school, so the district had to rebid.

    I bid at $76 per hour this year, three other bids were between $72 - $74, company "B" (even though they'd just informed the school 5 months ago that they were out of business) were at $65 per hour, and company "A", again, who was at $78.50 / hour 2 years ago, put their bid in at $60 per hour this year.

    Company "A" has dropped their rate 25%, or roughly $400 / snowfall in two years.

    Company "B", who informed the school that they were broke, apparently figures that raising their rate $5 per hour (about an extra $100 snowfall) is now going to make money by putting in a bid at $65 / hour this year, instead of the $60 / hour last year that led them to failure.

    I love this industry.
     
  2. dingybigfoot

    dingybigfoot Senior Member
    Messages: 260

    all i gotta say is....
    Wow!!!
     
  3. NICHOLS LANDSCA

    NICHOLS LANDSCA PlowSite Veteran
    Messages: 4,310

    Ya have to love it. I submitted bids this year just to be told I wasn't even in the ballpark. They had bids for $40-$45/hr for a truck, then in the same breath they asked if they could keep my number in case things didn't work out. The one property mgr even said the prices seemed too low but that it always comes down to the almighty dollar.
     
  4. Brant'sLawnCare

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

    I don't even bid on "open" jobs like that, or even if they want hourly. You can't compete with stupidity or dishonesty. Often times those jobs end up going for half of what I can get per hour otherwise. Not worth it in my book.
     
  5. Brant'sLawnCare

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

    So far from whatever I have seen and heard, it's not even worth submitting an hourly bid this year. They always go with the cheapest. And this year there are so many guys bidding really cheap hourly. I can't even compete with them, so I don't even try.
     
  6. KBTConst

    KBTConst Senior Member
    Messages: 426

    i have plowed a trucking co. for the last 4 yrs this yr they have a new manager he is a company man my bid was 350 per push took takes 1.5 hrs to clean everything with 14' pusher i have been plowing for 29 yrs the last 20 has been commercial a local well driller came in bid it at 150 per push and he told them that he will buy a 12' pusher to keep on site for winter i dont know what it cost him to plow but he is not doing the plowing one of his workers is so fuel work comp i dont think he will even get the pusher paid for @ 15-18 pushes per yr and they are having him push at 5" trigger i dont think he will be around to long gotta love lowballers that think it is so easy to make money plowing hope his loader doesnt break down :laughing::laughing::laughing:
     
  7. Mdwstsnow512

    Mdwstsnow512 Senior Member
    Messages: 168

    i plow a school district by me, had same situation.
    had a guy who low bid it but then padded the hours so he made a decent buck.
    i got the contract last year and have renewed. for an hourly rate that was less than his for the truck. but it is literally across the street from my guys house, and i do everything around it.
    so although my hourly rate is low, i still make plenty of money on it, and i retained the contract because i bill them for the hours i am there, not what i want to get paid for it.
     
  8. Ramairfreak98ss

    Ramairfreak98ss PlowSite.com Addict
    Messages: 1,905

    $65 an hour? for a 1 ton truck or a skid steer or pushbox? WTF? id just tell them $60 per truck and then send 30 tonka trucks with 5hp b&s motors on them with kids driving

    $60x30= good amount per hour then right!

    If im not making $200+hr for a 8-10' pushbox on a large property, were not turning the key on :/

    Hell i coudlnt afford to send our half ton trucks and 7'6" plows for $65 an hour.. by the time the helper and driver are paid and fuel there is no money left. F that
     
  9. MahonLawnCare

    MahonLawnCare Senior Member
    from Ohio
    Messages: 852

    gotta love scrubs...
     
  10. deicepro

    deicepro PlowSite.com Addict
    Messages: 1,124

    you said it all!!