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  #1  
Old 12-09-2013, 02:42 PM
zwhit81 zwhit81 is offline
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Join Date: Mar 2012
Location: terre haute IN
Posts: 118
HUGE CONTRACT! Input NEEDED

So I was personally asked to put in a bid for a large commercial job. Mow every 10 days or as needed paying (guess) around 10k per mow. I already have a job so this would be a job on the side for one season until I could quit my current job. It is a 3year contract. I have estimated it at 45hrs per mow. My plan is to have three guys mow for 25hrs over three days and each evening check their work and me and some part time help mow 20hrs over 3 or 4 evenings. So I chunched numbers and here is what I have come up with.....what am I missing? These numbers are per cut. Where am I over or under estimating? (mowing with 72" ztrs and a 48")

Labor $2,000
Fuel $700
Insurance $100...already have insurance but may need to up it
Repairs $100 ...I would put this back each week even though equip is new
Put Back for New Equipment $1000
Misc $250

Big question what will my business tax cost?

I come up with $5850 left over each cut am I realistic?
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  #2  
Old 12-09-2013, 02:59 PM
jc1 jc1 is offline
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Location: The Real South Jersey
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So you already own the 30k worth of equipment to handle this job?
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  #3  
Old 12-09-2013, 03:04 PM
zwhit81 zwhit81 is offline
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Location: terre haute IN
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I would be buying 2 72" mowers and 2 trimmers plus a used trailer. I have enough to pay cash for the equipment that is not an issue.
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  #4  
Old 12-09-2013, 03:10 PM
jc1 jc1 is offline
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Do you have employees yet?
You are going to set 3 guys loose for 3 days mowing with new equipment and no oversite?
What will they do other days?
Why need 3 for 25 hours then one for 20?
Sounds like no one gets any hours.
What happens if 10 days or so turns into once per month due to drought?
What happens if your guess of 10k turns out to be 5k?
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  #5  
Old 12-09-2013, 03:21 PM
zwhit81 zwhit81 is offline
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Location: terre haute IN
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I will be checking up on their progress each evening after work I get off at 3 so if they work till 5 I will be working 2hrs per day with them. I will bring a few high school students that currently work for me to work some evenings.
Also I am a teacher so I am off june july and most of august.
My father is retired and would be willing to work a few days per week and I can mow weekends when the work falls on a weekend.
I have 60k per year in other income so if we hit a drought life goes on. Equipment will be paid for in cash so no payments to worry about.
If it is less than 9k per mowing I wont accept the job.
So as I was asking to my numbers add up?
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  #6  
Old 12-09-2013, 03:27 PM
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gcbailey gcbailey is offline
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Location: southern WV
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Quote:
Originally Posted by zwhit81 View Post
I will be checking up on their progress each evening after work I get off at 3 so if they work till 5 I will be working 2hrs per day with them. I will bring a few high school students that currently work for me to work some evenings.
Also I am a teacher so I am off june july and most of august.
My father is retired and would be willing to work a few days per week and I can mow weekends when the work falls on a weekend.
I have 60k per year in other income so if we hit a drought life goes on. Equipment will be paid for in cash so no payments to worry about.
If it is less than 9k per mowing I wont accept the job.
So as I was asking to my numbers add up?
Robbing from Peter to pay Paul never works, even if it is your own money.

On your labor, are you figuring that amount as "legit" pay or how are you getting that?

You've also stated nothing about how far the job is from your shop, calculating the fuel cost for your truck(s). Do you have any trimming or is this mowing only?

I believe you're missing a few variables in your "profit"
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  #7  
Old 12-09-2013, 03:29 PM
jc1 jc1 is offline
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Ten k sounds pretty high for the few hours it supposedly is going to take to perform the service.
75 man hours for 3 guys then 20 man hours for 2 guys. 95 man hours for 10k would be impressive when typically larger jobs bring lower rates.
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  #8  
Old 12-09-2013, 03:31 PM
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THORNTON SERVICES LLC THORNTON SERVICES LLC is offline
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How big of an account is this I have never heard of a $10,000 per cut price , I know of accounts that have a bunch of stops that total 10,000, per cut together ? I am still trying to wrap my mind around this , what type of business , how many acres etc? Thanks
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  #9  
Old 12-09-2013, 03:33 PM
ReddensLawnCare ReddensLawnCare is offline
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I think you are jumping the gun and setting yourself up for failure. Don't buy all that equipment for one job. Are you sure the property manager is fine with you not having any experience with something that large or being there 5 days a week. How many acres is it?
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  #10  
Old 12-09-2013, 03:36 PM
zwhit81 zwhit81 is offline
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Location: terre haute IN
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I think they are overpaying too. I know for a fact that a three man crew with 3 72" dixie choppers did it in two days this past season. Not a far drive from my shop very little trimming only a few sidewalks and a parking lot. Almost all riding the only trimming would be around trees and telephone poles. Very little blowing too. Like I said a parking lot and a few sidewalks. I would be paying "legit". Not sure what made you hint that I would not be. I have been in the business for 15years. I know you couldnt do this kinda job and pay under the table unless you wanted to end up in federal prison.

Also I would not be robbing peter to pay paul. I have been putting money aside for several years for future expenses and equipment. I have enough in my lawn care equipment account to pay cash. It is not coming for my childrens college fund or something crazy.
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