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  #21  
Old 06-18-2013, 07:41 PM
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zacher zacher is offline
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Originally Posted by Green Clean View Post
I knew my costs, plus I had the inside track as to what it cost before as I worked for this park last year. I suppose my problem is I don't quite know where the profit margin is supposed to be. Could someone from another state (Not MI as that would be counter productive) give me a hand here? I had my fuel at .50 per lot, my maintenance at .35 per lot, my taxes at .25 per lot, me and my guy at $8 an hour, and a 24 % profit. Can someone show me where I went wrong?

Well, What do you consider a "lot" what size is this lot? I mean if thats all it takes you thats all it takes. But I usually somehow like to count fuel in and fuel away. Atleast $20 dollar per hour for myself. I dont usually have helpers. And then Business profit. Here in georgia its a little different I suppose gas is $3.48/gallon here. I charge .40/mile driven (my truck only gets 12mpg on a good day) this gives me a little swing room. Usually gas addition to and from usually only costs $8 total or if its in route less. Then I mean to me a "lot" sounds like ALOT. If you understand...I seems to me 50 cents is low....I dont even know what a "lot" is...but I will tell you right now I wouldn't do 50 cents for a residential yard much less a lot...

But as long as you come out with a profit your fine. Your not even taking a hit. Sure it might suck and sure you might hate it and wish you didnt underbid but as long as your in the green then why worry about what anyone else has to say about it?
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  #22  
Old 06-18-2013, 08:03 PM
Green Clean Green Clean is offline
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A lot is about 1/6 of an acre. Its a trailer park so they're not huge and a revised estimate puts the park at 32 hours and not 40, but the bid is in at 40 so thats where it lies. I did estimate gas for my truck for another bid at .30 per lot. Thanx for the input I appreciate it.
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  #23  
Old 06-18-2013, 08:31 PM
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tonygreek tonygreek is offline
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But as long as you come out with a profit your fine. Your not even taking a hit.
Serious question: How is profit being bandied about when you're at $8/hour? At this point, "profit" is just an arbitrary word assigned to anything over and above minimum wage.
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  #24  
Old 06-18-2013, 08:46 PM
GrassGuerilla GrassGuerilla is offline
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I hope this is a troll. Otherwise it sounds like you are killing yourself for almost nothing. And dragging down your market. Im pretty sure you would make more working at the corner gas station, or McD's.

Why buy trucks,trailers, mowers handhelds etc to make $8/hr? Must be a tough market.

Thanks for working instead of suckling the gov teat.
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  #25  
Old 06-18-2013, 09:48 PM
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LandFakers LandFakers is offline
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Man im at 60/hour to mow... but thats including expenses and such. I pay myself $22 an hour and take a bonus home at the end of the year. Dont estimate fuel by the lot, but by the hour. You arent going to spend exact 50 cents worth of gas at every lot. Figure how long it would take to mow all lots(in hours), and multiply it by how many gallons your mower(s) use per hour, then multiply that by the price of gas. That would give you a break even point, you can mark up the price of fuel. at 64 hours(2 guys 32 hours), just in gas id be at $368. Id be getting atleast 4000 to do this.... anything else and id be wasting my time.
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  #26  
Old 06-18-2013, 10:19 PM
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zacher zacher is offline
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Quote:
Originally Posted by tonygreek View Post
Serious question: How is profit being bandied about when you're at $8/hour? At this point, "profit" is just an arbitrary word assigned to anything over and above minimum wage.


He said profit is 24% for his company. I mean...$8/hr I'm not working Ill tell you that much...but if thats what he wants to pay himself let him. I agree with dragging the market down, it sucks and it happens...ALL THE TIME. But in the end 90% of the time a customer will pay a little more for a quality job once they realize the work lowball, flybynighters will do.

All I am trying to say is he underbid. He knows it. You signed a contract, you better do the work. What I am saying is and I said before is that it sucks..but as long as he's in the green or there any sort of profit being made its better than losing money.


This is the exact reason why I have yet to bid a commercial property. Every time I want to I just think about how much I could screw myself if I underbid. Sure its an easy concept to think about but looking at a property for me and estimating time and money in verses out is still relatively new. Specially on bigger accounts.
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  #27  
Old 06-18-2013, 11:17 PM
Green Clean Green Clean is offline
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I honestly had no clue on how to bid this place. I knew what was paid before and what it cost him per lot to have his maintenance crew do it. I underbid, and now I know I did. I'll chalk it up to a learning experience and grow from it. I don't know how everyone else started, but info is hard to come by and I seem to always get it by learning from mistakes. But experience is experience and we all learn from it, so I''l use this to make my other bids better.
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  #28  
Old 06-19-2013, 04:39 AM
caseysmowing caseysmowing is online now
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Quote:
Originally Posted by Green Clean View Post
I honestly had no clue on how to bid this place. I knew what was paid before and what it cost him per lot to have his maintenance crew do it. I underbid, and now I know I did. I'll chalk it up to a learning experience and grow from it. I don't know how everyone else started, but info is hard to come by and I seem to always get it by learning from mistakes. But experience is experience and we all learn from it, so I''l use this to make my other bids better.
Yes it's good you are not losing money. But if you knew what the bid was for last year why wouldn't you move your estimate up to it?? Unless the last years bid was say 2500. Never leave money on the table if you can help it. Yes it would be a hard bid to do being new to the business but you had the inside scoop to make it easier. My advice is to get out of the mobile home mowing and what not. Yes you can make money but not the kind of living I want.
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  #29  
Old 06-19-2013, 11:30 PM
Green Clean Green Clean is offline
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Well I screwed up. I waaaaay underbid this job and thankfully will be getting out of it. It was a strange situation, but after reading what was said here (other than calling me an uninsured lowballer that is) I have decided to let it go. I needed the account to buy the equipment for the account, mistake number 1. Then I did the further math and at the end of it all my helper made $500 more than me less the new mower, and for 160 hours I would have made $900 above my new mower. However the owner wanted to see how it worked with my current equipment (yeah right, although I did give it a shot and did 6 acres or 34 lots in 4 hours) as well as I had to lessen my customer service to my existing customers ( I wasn't happy about this). So I'm back at start LOL
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  #30  
Old 06-20-2013, 12:29 AM
GrassGuerilla GrassGuerilla is offline
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Lol. Another day in paradise huh?
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