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View Full Version : help with a bid please


cade03
01-12-2011, 07:22 PM
the age old question, i know youve heard it before, but please help. i have a potential new client. they want their 232 acre property to be bid by the acre, per cut. 42 cuts per year. this is a rental subdivision. 630 houses, all rentals. area to be maintained includes all houses, streets, curbs, beds, playgrounds, etc. i have not bid anything like this before. houses average about 5000 sq ft of turf. i know that i could give a two page description and it probably wouldnt be enough for you guys/gals to help with a firm estimate, but please help. my time is very short( meeting in the AM) have any of you ever bid on a large property like this by the acre before and what would you recommend that price point to be? thanks in advance. i am new to this site but i hope to be a regular supporter.

MOturkey
01-12-2011, 07:36 PM
Way out of my league, and, no disrespect intended, but probably yours also if you have to ask. You could figure what you would need to have for each individual property, then multiply by 630, then add for common areas, but something tells me, just from what i read on this site, that the winning bid will be far less than this number. Good luck.

cade03
01-12-2011, 07:47 PM
thanks for the response. i agree, big job!!! i am currently working on the same site taking care of about 200 houses on a two week schedule. they are being consolidated and i have the inside track for the whole deal( so i think ;)) ive been doing these houses on a per cut price for 5 years now. its just very hard to figure the common areas by the acre. yes i could fugure the houses that way because they are all very similar. just a little out of my comfort zone but thats not gonna stop me from trying. just wondering if anyone out there has had experience with this type of bud? thx

ELS LLC
01-12-2011, 09:59 PM
Personally triple the price your charging for the 200 houses plus extra for the common areas and presto! We had a HOA similar to that and I noticed way to many cheifs and not enogh indians. Get the contract tight. Half way into the season the HOA voted on bagging all the grass on the whole property! On top of that we started getting calls wanting different heights on different lawns! My guys hated even being on the property! On top of that they are rentals and we had to deal with toys, dogs, pain in the butt. I opted out the second season and now the company is doing it for half of our price!

LibertyFarmLandscaping
01-12-2011, 10:17 PM
thanks for the response. i agree, big job!!! i am currently working on the same site taking care of about 200 houses on a two week schedule. they are being consolidated and i have the inside track for the whole deal( so i think ;)) ive been doing these houses on a per cut price for 5 years now. its just very hard to figure the common areas by the acre. yes i could fugure the houses that way because they are all very similar. just a little out of my comfort zone but thats not gonna stop me from trying. just wondering if anyone out there has had experience with this type of bud? thx

I agree with the other poster. Just charge the same per unit as what you currently charge for the 200. If it's hard to get an idea of the size of the common areas just by looking, take a measuring wheel with you and measure the actual size of the areas then estimate the time it will take with the trimming involved. On something that large you could loose your shirt big time by getting in too big of a rush overlooking what all is involved. Although I never have done a job this big I did have a 75 acre cemetary on a 3 year contract at one time.

TheGoat
01-12-2011, 10:19 PM
if it were my lawn service (http://www.hungrygoatlawns.com) I would bid it at 45/acre/cut

cade03
01-13-2011, 06:33 AM
thanks for the responses. actually helped abit. good day to all and good luck

Bogielski
01-13-2011, 08:21 AM
I would estimate by the house, approx 35 - 40 per home. I would through in the playgrounds and common areas for free due the sheer volume of money. @35 per home your looking at $22,050.00 x 42 cuts = $926,100.00

ALC-GregH
01-13-2011, 08:38 AM
I would estimate by the house, approx 35 - 40 per home. I would through in the playgrounds and common areas for free due the sheer volume of money. @35 per home your looking at $22,050.00 x 42 cuts = $926,100.00

They would laugh you right out of the office at prices like that.

Bogielski
01-13-2011, 08:49 AM
consider this, they are charging rent @ 800 - 1000 per month X 630 homes. Say they are all $1000.00 per home for rent per month = 630,000 per month X 12 =7,560,000.00 per year. Thats not a bad price considering the amount they are taking in.

starry night
01-13-2011, 08:58 AM
consider this, they are charging rent @ 800 - 1000 per month X 630 homes. Say they are all $1000.00 per home for rent per month = 630,000 per month X 12 =7,560,000.00 per year. Thats not a bad price considering the amount they are taking in.

You must be kidding. No way they would spend 12% for lawn care.

Bogielski
01-13-2011, 09:24 AM
You would be surprised, what is your average price for mowing one lawn (1/4 - 1/2 acre w/ a fence)?

We start at $30.00 per lawn (w/ a fence $35.00). Townhomes start at $20.00 per complex normally there are multiple (more than 20 or 30 complexes).

Can you afford to spend 30 - 40 min on each home in that 630 home complex and charge less than $30 - $35 per lawn?

gasracer
01-13-2011, 09:53 AM
Even at $25 per house that is still $15,000. I would bet some lowballer will get it for $5,000.Unless you had a crew of Illegals you couldn't do this in a reasonable amount of time and cost. You wouldn't have time to do anything else.

starry night
01-13-2011, 10:35 AM
Can you afford to spend 30 - 40 min on each home in that 630 home complex and charge less than $30 - $35 per lawn?

No, I can't and wouldn't. I was only alluding to the big picture from the rental agent's point of view. I can't imagine them spending 12% for lawn care,

Bogielski
01-13-2011, 10:45 AM
They can have it for that, think of this, 630 lawns mowed once per week, On average a crew of 2 or 3 can mow 15 - 20 lawns per day @ an estimated 10 hour days. One crew could do 100 around 100 lawns that week. you would need 6 or 7 crews working 5 days per week for 50 hours each. for simplicity lets say you pay them $10.00 an hour. You have 21 personnel + 14 mowers, 21 trimmers and 14 blowers 7 edgers. Just in wages for the week you would spend - $10,500.00 + the employer must match there social security and medicare. Add fuel $200.00, Mower payments for the month $2436.00. and estimate $500 for misc costs. Also what if your equipment breaks? you have to budget for that. There are alot of expenses that may come up that are un-expected. even with all that your profit margin is around 20% - 30%.

Would you reduce your profit margin to 10%?

Bogielski
01-13-2011, 11:01 AM
Lets look at equipment costs just for this job.
7 ZTR mowers @8,500.00 = $59,500
7 Walk behinds @7,000.00 = $49,000
21 trimmers @ $215.00 = $4,515
7 edgers @ $215.00 = $1,505
14 blowers @ $145.00 = $2,030
7 trailers @ $2,500.00 = $17,500
7 trucks @ $20,000 - $30,000 (Ave - $25,000) = $175,000

This would cost you around $309,000 + all your labor costs ($10,500 per week) + fuel + taxes + anything that may go wrong, then add in your profit margin. Given you wouldnt pay off your equiptment all at once and hopefully you could keep that account for more than one year, but to expand that fast and get into that kind of debit would set you up for failure for the following years if you lost that contract the following season.

gasracer
01-13-2011, 11:07 AM
I have a headache at the thought of it...