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How has area managment affected your business?

Discussion in 'Business Fundamentals' started by SkykingHD, Dec 3, 2004.

  1. SkykingHD

    SkykingHD Senior Member
    Messages: 368

    How has area management affected your business? Area management is when an out of town company holds the bids for snow and salting out of his area that the company can service and hires subcontractors to remove snow and salt. Have you got more business, less business? Have you had any good or bad experiences with out of town companies bidding snow and salting in your area? Has the price of snow removal and salting increased or decreased when area management comes into your area?

    Please don't turn this into a company bashing thread...but tell us the pros and cons that you have experienced with area management companies.

  2. PSDF350

    PSDF350 Senior Member
    Messages: 577

    Dave i dont think there are many pro's but lots of con's
  3. SkykingHD

    SkykingHD Senior Member
    Messages: 368

    Area Management


    I think you are right. We have seen only negative in our area. The area management people come in and bid low. They find someone poor soul who does not know what it costs to operate equipment and hires them till they go bust then move on to another poor soul.

    With the non payment issue also this makes it very unattractive to work for one of these area management companies.

    I hope more people chime in and tell there view as we are seeing a trend in our area toward area management.

  4. plowed

    plowed Senior Member
    Messages: 344

    I think everyone knows how I feel about them...At the risk of being called a troll, here's the quick version...You do the work, then essentially get screwed. They sell it as a win/win/win, but it actually is a win/win/lose. Guess who loses? Win #1:The client gets their lot(s) cleared for a great price becuase the management company has just underbid the account by as much as 70%, Win #2: The management company gets paid, Loser: The contractor that does a great job in getting things done, but doesn't get paid. Then when he does finally get paid, they tell you their only paying you 75%, 1/3 now, 1/3 next month and your last check will be in June of '05! And it's not an isolated thing, as there are many, many other contractors in the same situation. Many of us got burned. My advice, stay away. If you want details feel free to contact me. That offer goes for anyone.
  5. landcare pa

    landcare pa Member
    Messages: 98

    has any one that has worked for one of these companies ever read one of these companies contract`s that clearly state`s that the contractor is resposable for anything that happen`s on the property and not only do you name the management company as additional insured but also the property owner. also read the contract where this a no compete clause. i dont know about anyone else but liabilty insurance has risen by $22,000 this year i only take care of customer`s property that i have control of.... :nono: