Business And Organizations That Seek The Lowest Prices For Snow Plowin

[Kodiak450]

I can't stand buisnesses and organizations who seek out the lowest bids for snow plowing. There is a school that has two locations that sends me bid proposals every year and award the contractor that comes in with the lowest bid for the season. Even if you were awarded the contract for this season, the following season they send out the bid proposals to every contractor again, in an attempt to seek out an even lower bid from the previous season.

 

For a goof, last year I sent in a ridiculous low bid under a fictious company name I made up and I actually came in second. Some company actually came in lower then my ridiculous low bid (which btw would of cost me money to plow one of their lots). I try to spread the word to other contractors to avoid places like this as they are cheap and basically seek out the lowest possible price. So I happened to pick up a nice money maker residential account very close to one of the schools locations last year and basically drive by it to get to this clients property of mine. Everytime I drive by the lot was covered and not plowed, until one time when I saw that it was being plowed. The person plowing it had no name on his truck and looked like he was using a 1/2 ton truck (not 100% sure, as there was too much distance between me and the lot to see). It was an older GMC truck that had the square headlights on it, they probably hired someone who is a weekend warrior to plow their lot.

 

This is why I always ask when a school or business calls me for an estimate, I ask them did they ever use a contractor in the past and as to why they are no longer using him.

[FargoZ71]

Good post, lots of cheap asses out there who don't appreciate having a quality job done. Our schools around here all use the construction companies for there lots, then the maits guys just use there own bobcat or JD with a sweeper for the sidewalks inbetween. But.. I guess then again I do live in a state where they have a surplus for now lol.

[Kodiak450]

They request only snow plowing and have their janitors do the sidewalks. They want bid for plowing and bulk salt by the ton or something (which I do not price ice control services that way).

[Z45]

Gov't and schools and other tax payer funded org's are required to use the low bidder, even if its only 1 cent difference. Every road project you see out there is the low bidder, its the law. If they were to give it to anyone but the low bidder, they would be in trouble.

 

So I can understand why the school does that. Sometimes it turns out to be penny wise and pound foolish but they cannot pick and chose, Low bidder rules..

 

 

I recall at the DOT the local maintenance garage could only buy parts for their plow trucks from this one company because the had been awarded the low bid contract. Only problem was they were 500 miles away and it took days to get many parts they needed right away. All the while there was another company who made regular deliveries to other truck shops in the area but could NOT get the state DOT business because this other company always came in with a lower bid. Would drive the mechanics crazy waiting days for parts they know they could have in 1 day but nothing they could do, the bean counters were in charge of state contracts. Same way with vehicles. People would always surmise that the Dudge trucks must be the best because the state bought so many, in reality the state bought so many because they were the cheapest to buy, the only reason.

[ChevyTech77]

There is only one part of this story that burns my ass. A snow plowing company that is complaining about a contract given to the lowest bidder. Pretty much name of the game, I figure however, when I went looking for estimates on having my driveway plowed vs. buying the equipment to do it myself (current house is a rental next house will be different) I was given an absolute rediuclous bid time and time again to the point that I am currently shopping for a snow blower because it would cost me more to have it plowed for 1/2 of the winter than to buy a brand new snow blower. $40-$50+, to plow an 8 x 50' drive way? One pass back blading it? No salt, no special crazy stuff period? Crazy.

 

Sorry

[Kodiak450]

There is an understanding that they would have a budget, but to award the contract to the lowest bidder, only to seek out an even lower bid the following year and the year after and so on is just ridiculous! Are we to believe that each year they get a lower snow plowing budget, therefore need to seek out the lowest bid? I don't think so. And to further add insult to injury, this school is located in an extremely rich township, where the taxes are tens of thousands dollars higher just because you are in their township. Salt prices tend to go up and down and what last years bidder who won the contract is practically giving the salt away for free. Also the little amount to plow this schools lot. Were talking the price of a long residential driveway that is about 125' ft long is what they are paying out to have their lot plowed for the 1-4" increment. And for 4-7" increment they were paying him under $300. Why wonder the truck had no lettering on it, it had to be someone who was looking to make extra money plowing. Lot's that size minium, would go for at least $450 for 1-4" accumulations, and increase more after 4".

 

I have clients that live in this township and pay in excess of $45k a year in property taxes and higher (depending on the lot size). Real estate in this township is very expensive just because it is located in this township. You can take the same size house even on a bigger lot in the neighboring townships and their taxes and real estate is much less.

[MikeNH]

I work in a totally different industry so it may not apply but when we're forced into a bid situation we can offer the customer a "sole source justification", basically even though we may not be bottom bidder we can do something the other guys can't. If the school is just looking for a bare-bones service from you this might be tough but in our situation it can work well.