Join Date: Nov 2013
Thanked 55 Times in 32 Posts
Someone else from MI correct me or fill in the blanks but:
Wasn't it the summer of 2012 that Safeguard lost/gave up the Fannie contract at least in MI - that was the same time they aquired BOA.
During that same time period, GTJ was also doing Fannie homes in this area, out of Kalamazoo I believe - used to see them a few times a week at least.
I remember being at an AMS meeting for HUD and one of the speakers told us we should be prepared to operate in single digit margins (this guy used to own his own preservation company but sold out and went to AMS) - he must have had some insight on bids being tossed at Fannie because....
AMS took over Fannie here in MI, lawns that we used to do for Safeguard went untouched for 4-6 weeks, instead of cutting the whole thing they cut perimeters or minimal. AMS kept coming at us with obscenely low pricing for the former quality level and work that Safeguard was doing - while we didn't do any type of preservation for Fannie/Safeguard, thru the lawns we were paid decent and seeing the work completed it seemed above average in our area.
AMS was wanting spic and spam spotless for 705 minus 20% - lawn, clean, debris to 35cy and a wint. Needless to say, in our area they couldn't keep contractors and set up their own shop in Grand Rapids with all new shinny equipment to service the account. I seen them all over the place.
I haven't seen a GTJ truck in a few years, they are a nationwide company I do believe with some pretty strict rules or the way they run things.
I just have to wonder what went down with Safeguard and Fannie - Safeguard makes a cut off of every dollar billed, so was it really in their interest to pay low and expect so much?? I know they could just keep more but they paid us pretty well on the lawns, a lot of freedom with bush triming, weed spraying, different lawn sizes paid more money etc..... The houses were pretty spot on too, not really any BS stuff like single bolt boardings and handrails falling off......
Wouldn't break my heart to see AMS suffer, may even have to drive up to their shop and see what's for sale...