lower pricing due to the economy

How many of you guys call someones bluff when they say that they recieved a lesser bid? I do all the time and then a week later I hear back from them and get a greenlight to go do the work because they were lying!!!!

One time last year really sticks out in my mind. This guy called me out to estimate a large swamp maple. I told him $3150 and then he responded that he had recieved a bid for $2000. I then told him to jump all over it because I could not even come close to that and that I knew that no one else in town would be able to beat that bid. He then calls me back 2 days later and ask if I can do it for $2500 because the other company did not have insurance. I tel him absolutely not, and in the meantime I know that he is getting shitloads of bids from other companies. Three days later he calls me and tells us to go ahead and come do it.

Point is there never was a $2000 bid. He just made that up to try and sway me, but I refused, and ended up getting the job for my original price. This isnt a flea market or a swap meet. My price is what it is and people are welcome to go elsewhere. No one negotiates with a mechanic or an exterminator, and I will not allow myself to be hackled or bargained. That whole concept is f'ing ridiculous.

Derrick Hulsey
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Amen, brother, preach on. I actually had a scheduled bid about 7-8 years ago, where this old man called every service in the book and told all of them to come at said time. I get there, and there were 6 tree services there to give a bid at the same time. Old man walks out and points to the tree and says, "alright boys let's start the bidding!" All of us were shocked, and ALL of us got back into our trucks and drove away without giving him a price. I'll never forget that crazy old dude.
 
[ QUOTE ]
Amen, brother, preach on. I actually had a scheduled bid about 7-8 years ago, where this old man called every service in the book and told all of them to come at said time. I get there, and there were 6 tree services there to give a bid at the same time. Old man walks out and points to the tree and says, "alright boys let's start the bidding!" All of us were shocked, and ALL of us got back into our trucks and drove away without giving him a price. I'll never forget that crazy old dude.

[/ QUOTE ]

I found the craigslist version of "How low can you go?"

http://phoenix.onthejobbob.com/rfp16377936-need-a-large-tree-trimmed.html

Serenity now...serenity now...SERENITY NOW!!!
 
Word Noel. People bidding jobs based off of one lousy picture taken from the front yard. You cant even see the work area. The kicker is that one guy stated that he would trim the tree to "the customers satisfaction" or something along those lines. What if the customer was not satisfied until you had "trimmed" the whole tree down to a 5" high stump. Wouldnt that be hilarious. End up removing an entire tree for $140 or $150 bucks. HAHAHAHAHA!!!!

Derrick Hulsey
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You can't compare our industry with GM or Ford or the grocery store for that matter. We are in a bowl service businesses where our price can vary based on how much you spend on labor. If the competition decides to pay their crew cash then we have no way to profitably compete. By doing this they have eliminated their comp. ins. and gen liab to zero for the day. If their equipment is paid for then they are also in a better position to compete.

We will compete with these companies and go into it knowing we are loosing money on one crew for the day but at the same time we keep our client or add a new one while our competitor sits at home. I for one enjoy the phone calls from our competition telling me I'm loosing money. I always get a good laugh and tell them if you want to get some work ...start a real tree service and pay the price to be one, otherwise..go somewhere else and work.

There will always be someone who will do it cheaper. Right now with yhe economy the way it is you better be able to figure out how to lower your price and still make money because if you can't....bye bye.

Its the money game....we all get to play.
 
it might be a money game to you but its a service game to me...the whole reason I posted nthis thread was because of a very reputible company was underbidding by a long shot...not some pick up tree hack oil leaking wannabe....no bye bye here for me dude
 
Natree, in my part of the world you are way off base. People dont want to use a hack because they dont want those kind of people at their house, and furthermore dont want their neighbors to c those people at their house.

Shovelhead, does this large reputable company have equipment that you dont have that makes the "machine" run faster and more efficiently? Do they have a crane, a log loader, a skid steer, or something that you dont that allows them to bid lower because they are in and out in half the time you are? Just something to think about.

Derrick Hulsey
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I consider them to be one of the more educated companies and TCIA accredited as well! Thats why it blows me away! We have all the goodies,,crane, loader,bucket everything to run efficient and we are TCIA members working on becoming accredited as well. Again, I refuse to drop my prices. I agree a $100 or so maybe but I realize each job and the risk involved. I always tell people I would really love the chance to serve them but I dont discount what we do. We are blessed with about 3 weeks of work as of today...still not like last year this time.
 
Count your blessings. I run a two crew outfit and we are working around four days a week. It will pick up in a few weeks and we will be busier than a one armed paper hanger. But three weeks at this point, I wouldnt be griping. But there are companies around here that make their money off of quanity, just have to deal with that.

Derrick Hulsey
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this is the deal...

"survial of the fittest"


We are no different than other businesses; when there is less money (which equals less work) something has to give.
 
Not only that, If some guy in a pick up truck with a chainsaw can do the same job that you can do -FOR LESS MONEY- he's better than you. One of you has to be better than the other. What, professionals don't have accidents. NASA hasn't done so well. or if some chinaman can build a chain saw or car better than detroit can, for less money, then detroit had better go to china to school before their houses are selling for fifty cents each instead of a dollar...
 
Shovelhead , if its a service game then lower your price and do the service. This very reputable company may be building clientel. Thats all.

Flashtop...the Jones are going broke and if you haven't yet seen it in your part of the world then good for you. In short time the "hacks" will have new pretty trucks just like you and me.

We all have about a 10 year drag ahead of us and if you can find enough people to support higher price/lower volume service then go for it. I would rather have 15% of 2.5mil than 20% of 1 mil.

Giant slayer..I agree.
 
BOSTON – Eddie Doyle was the guy who really did know everybody's name.

But after tending bar for 35 years at the Boston tavern that inspired the television show "Cheers," Doyle has been laid off.

The bar's owner says the economy is to blame.


...guess eddie wouldn't lower his price.

...maybe he'll go into the tree business.
 
I always thought a man's last couple bucks would be for either a bullet or a shot 'o booze.

Firing of Eddie just doesn't sound right. Might be his boss is crooked like Wall Street was.
 
I just bid a job today for $1400, and the guy said he would be getting other bids. I told him that he would most likely get what he paid for, and I could pretty much guarantee that a drastically lower bid would mean a different end result, re property damage, mess, pissed off neighbor, hacked up trees, etc. I gave him a price for what I would do, not what someone else would do. I did, however, give him the names of several other reputable local companies that I thought would offer a good service at a similar price, so he might understand the difference between a tree care company and a guy with a chain saw. At least if one of these other companies gets the job, the trees will be better off, and no one will die during the course of the job. I can live with that.

-Tom
 
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