If a recruit is concidering me and another school and the other school fails to offer a scholarship at the signing period, shouldn't the recruit automatically fall to me. In fact the other school failed to offer a schollie for two more cycles. I finally lost out a few cyles after that because I couldn't throw a lot at him I guess. It just really made no sense to me.

Do you know for certain they hadn't offered a scholarship before the initial signing period? What did your email say about where you stood at that point? Just 2 questions off the top of my head...

It's not a matter of the other school "failing" to offer a scholly at the signing period....it's a matter of the other school having an available scholly.  As long as the other school has at least one scholly available ALL recruits considering that school will continue to do so until that school has no more schollies left OR another school makes enough effort on the recruit to turn him green.

I took another look and he didn't offer any schollies until 9 p.m I was trailing, but sent a HC visit and HC phone call the next 3 cycles. After the third cycle he was leaning towards me. The fourth cycle I sent another HC visiit and phone call, but he must of sent a lot because the next cycle he signed with him. I guess don't go after any elite school conferences cuz they probably get 100k or more in bowl money LOL.

youre better off using only CV's, and scouting trips. Save the HC visits, and phone calls for CVs.