Originally Posted by APLUS LAWN CARE
Yes, it has been rather cold and in fact they are calling for quite a bit of snow for tomorrow. So I know that is why I haven't been getting any calls right now. I am more concerned with my bidding system.
I generally bid residential yard at a rate of $50 per acre (about a $1.15 per 1,000 S.F.). Most residentials I bid around $35 - $50 per acre. Is this a good way to bid? I know a lot of people talk about knowing your expenses and I'm not sure how to figure tht but I do know that the last two years I have averaged around 9% profit margin. Is 9% good for this industry?
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I bid by the SF not per 1,000 SF. A property that is 10,000 sf is different then a property that is 10,999 sf.
If you are bidding $1.15 a sf then a half acre should be charging $24 and $49 for one acre. Yet some 1 acre prop's you will bid $35 then other's you will bid $50.
First problem is you are giving some customers a $15 discount. That is $15 dollars you are leaving on the table. That explains your profit margin.
When the weather is slow to warm up things come out of dormancy later which makes people put off taking care of landscaping. So lack of customer response is normal for now. Just keep advertising.