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Drastic Reduction

Discussion in 'Commercial Snow Removal' started by Snowplowlady, Sep 25, 2010.

  1. Snowplowlady

    Snowplowlady Junior Member
    Messages: 3

    We have supplied snow and ice maintenance for a Major Bank for about 18 years. They hired a new management company 2 years ago and they keep reducing the contract amount and upping the requirements. I understand that they came on board during an economic downturn and the first reduction was understandable even though expenses on our end went up. The contracts just came out for the 2010-2011 season. Compensation is 53% less than last year. Last years reduction was about 10%. With that kind of cut and all of the fixed expenses of running a business that would leave us paying to clean up the lots! Is that cut excessive (I believe it is). I don't want to give up the jobs but I want to negotiate the price. Are we crazy or is the management company out of whack?
  2. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    i don't know about banks in the US, but in Canada banks are about preformance, not price, I would go in, talk to your branch manager, let them know what is going on, if he is happy with your work, he well definetly step up and deal with it. The thing in Banks are a lot like Government, apperance is everything!!!
  3. Snowplowlady

    Snowplowlady Junior Member
    Messages: 3

    The branch managers do not have much input. The Bank hires a management company 6 states away who are not familiar with Michigan weather who seem to hold all the cards. They must feel that there are hundreds of lowballers out there that would gladly take over since they are now out of work and need something to do.
  4. Matson Snow

    Matson Snow PlowSite.com Addict
    Messages: 1,985

    The sad part is in Southeast Michigan where we are from...If you don't take the reduction..Someone else will..The Managment companys Know this and take full advantage of this...Sorry to hear this...Maybee try to talk to the Management company to see where they are coming from....Good Luck to You..:salute: