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How to deal with shady contractors??

Discussion in 'Commercial Snow Removal' started by John143, Nov 3, 2011.

  1. John143

    John143 Senior Member
    from NEPA PA
    Messages: 254

    Ok guys.... As you can see I’m new here so this topic may have been covered. But here’s what I got going on this season. For the last 3 years we been plowing/salting a lot for a well known food chain. This year come the 1st of the month when it was time to renew their contract I was told by the manager that we would not receive the contract this year. So like I’m sure anyone would want to do is find out why? So I asked. He told me the name of a local landscaping company that is now doing the snow/salt this year. So I pushed him a bit more… Long story short this company gave them a much lower price. Infact the price is so low that if this manager had half a brain he would know what I already know about this small local company. They DO NOT have proper insurance! Well they do have that nice little certificate. Problem is they are only covered for mowing lawns. Now I did think to myself. I’m going to just call the main office of this food chain and see if I can whisper in the right persons ear. But I decided not to. I remember when I was just starting out years ago trying to make a buck. But then again this local lawn company has been around for years I would think they should have the money now to get the right coverage. But It does piss me off knowing what I do about them and they don’t even have coverage!! And here I pay big bucks to get a good night sleep at night. Would any of you guys have done something different? How do I compete with this guys low balling this big accounts?
  2. BPS#1

    BPS#1 2000 Club Member
    Messages: 2,421

    I'd have no problem exposing the guy that doesnt have the proper insurance.
  3. bradlewislawnca

    bradlewislawnca Member
    Messages: 59

    These people need one accident to be out of business. they are not making much money. Just be top notch and you will get top notch contracts and command top dollar. if they fail the food chain you'll get the contract back. just don't seem desperate.
  4. John143

    John143 Senior Member
    from NEPA PA
    Messages: 254

    Yes! You have a very good point. It's only a matter of time.

    My prices are alittle on the high side but the qulity of work provided is in line with the prices I charged. It just sucks when these people come in with these low prices because it makes me look like the one ripping people off for charging to much. :realmad:
  5. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,953

    Are you his insurance provider? Have you seen his certificate of insurance? If not I wouldn't go spreading rumors you can't back up. Maybe they recently acquired it?

    How do you know he isn't just that much more efficient than you?

    THEGOLDPRO PlowSite Veteran
    Messages: 3,136

    Someones a little bitter lol
  7. thelettuceman

    thelettuceman PlowSite.com Addict
    Messages: 1,218

    Post # 5 makes some good points. Make sure you know what you are talking about.
    I have insurance and a very low overhead. I am not a lowballer . For being legit, I can be very competitive on price.
    Once again, just be sure before you cry foul.
  8. bhmjwp

    bhmjwp Senior Member
    from kcmo
    Messages: 309

    I am not sure about tour area, but my commercial accounts inspect insurance certificates closely. Most all require to be listed and mailed certificate from broker/agent.

    With that said, I am a lawn care provider and snow provider. My insuraqnce is less for my listed year round accounts vs snow or lawn only. I provide a 15% discount an snow proposals when signed up for both on multi year contracts. I bid based on $125/hr truck and $60 hr walks. Use larger scoop plows so pretty efficient. But by no means on the low end.

    As a multi service provider you do have lower costs per account, higher revenue and more consistent business. Most of my contracts come due April 1st.