need some help

[Kends]

I'm a newby. I have a chance to bid on a big job. It's a retention area in my subdivision. I've been doing really well bidding on residential work using formulas I found on this site. Sq. ft. x .002 = price for job. Basically, $2.00 per 1000 sq. foot. In some areas I go as high as $2.50 to $3.00 per 1000 sq. foot.

On to my job. It's 120,000 sq. foot. My neighpor is the treasure to our home howners association. She showed me the contract from last season and the guy is doing it for $130.00 per cut. It's a weekly cut job. No obsitcales. It's an easy cut. So, I use my formula, I come up with $240.00 per cut.

There's no way I'll get the job. This is my first year in the business (full time). Should I bid it a the $130.00? Am I doing something wrong with the $2.00 per 1000 sq. foot?

Help!

[joshua]

ok,kends here's my formula if i don't make about a dollar a minute i can't do the job, because of overhead. just to help us guys out tell us what kind of equipment you are planning on running and we could help you on your bidding and how many man crew you have or if you are solo. also, how big is the building on that property. 120,000sq - building size and thats the amount of grass you will be cutting. some more info, and all the guys on here can give you helping hand.

[skyphoto]

Kends,

I think it is not an easy? to answer....Do you really need the work? Is there fringe benefits to having this account such as refrences or other prospective clients nearby....Since ya know the bid from last year at least this gives you the hand up in the decision of how bad do ya want it.....

Just my .02

Good luck!!!!

[Runner]

Take it! If it's all wide open and no obstacles, I'm sure you can make money at it no matter WHAT you're cutting with. It still comes out to $47/acre.

[Edited by Runner on 03-17-2001 at 10:09 PM]

[TLS]

Fairly smooth and free of obstructions, about an hour to cut and whatever trimming is involved, $130 is a good estimate if you are using a 60"+ ZTR.

[Kends]

Thanks so far! To answer a couple of the questions.

Cutting with a 48" Exmark.

No obsticals...none...zero. It's a retention area.

And, right now, I'm solo.

Thanks in advance for the help!

[joshua]

no reason why you couldn't bid the property at $120 to $130, after you get used to the machine you will be able to ride in 4th gear and get it done alot faster. i say go for it but don't lowball. you do have to make some kinda profit and not pi$s off guys in your area. good luck

[Randy Scott]

First off, take the formula you got here and throw it in the crapper.It isn't going to work, obviously. Each job needs to be bid accordingly based on obstacles, ease of cutting area, access to the property, trimming, blowing and so on. Also you will only get what the market in your area will pay. You will have to find that out also. Look at pricing your jobs at the time it will take you to do them and then you should already have an idea of what your overhead is per hour so you can figure what you need to make to pay bills and be happy. That's your homework that should be done before you do any bidding. You are going to learn by trial and error. Jobs you bid and don't get, ask why so you know if you are pricing correctly for your region you cut in. It all comes down to figuring this stuff out with a business plan. If you don't lay something out on paper you are most likely destined to fail. This site is great but don't think it is going to be your cheat sheet in life. It has helped me greatly on many things, even "HOW" to go about pricing, but the actual numbers have to come from you, and only you. You need to know your overhead and anticipated profit margin. Good luck! You'll figure it out, it just takes time. :)

[HOMER]

I wish that were here! I could take the 72" Chopper and cut that in 45 minutes or less and make good money! Man, I guess I need to move.

[Eric ELM]

Your formula might work on small lawns, but a bigger one you can do cheaper since it is much bigger. It's like doing 12 - 1/4 acre lawns without any trimming, so this forula will not work for these lawns. I know a 60" Chopper would mow that in an hour or less, so a 48" should mow it in an hour and a half. Even if it took you 2 hours, your at the $65 an hour range which isn't to bad, plus there is no trimming. I feel you can make good money bidding it at $130, but that is just my opinion.

[turfguy33]

If you knew exactly what your mower could mow in one hour could greatly affect the pricing. Ok, you said you had a 48' exmark. First take an average speed of about 6mph, multiply that by 5280 (feet in mile), then multiply that number by your deck width, divide that number by 43560(sq ft in acre) then divide by 12 (inches in foot). Figure in a 15 to 20% loss from turns, overlaps and misc, and you have figured out what you can make.
example
6mph x 5280=31680 x 48=1520640/43560=34.90/12=2.90x.2=.58 2.90-.58=2.32
In this figure you can mow roughly 2.32 acres per hour. Just add trim time, and your normal hourly charge and your set.
according to the numbers you gave, its about 2.75 acres, So I would figure roughly 2 hours for everything, this should be more than enough, and give you a little cushion for everyday delays. I normally charge for a job like this about $55 per hour, especially if there is no trimming.

[Kends]

Thanks guys!! Especially turfguy33 for the new math. I got the job. Also got a chance to bid on another 70,000 sq. foot job on a park way right next to the retention area.

Take care,
Ken