19.7 Acre Commercial Account. Whats Your Price?

Discussion in 'Lawn Mowing' started by bah1491, Mar 21, 2013.

  1. bah1491

    bah1491 LawnSite Member
    Posts: 137

    Never though I'd do this, but I am just curious to see how my numbers compare to someone else's. Obviously rates vary from state to state, and region.

    -My production rate for our 60" Exmark Lazer Z X series is right around 2 acres/ hour

    -Production rate for our 60" Exmark Turf Tracer X Series is right around 1.5 acres/ hour

    I have always been very confident in our pricing, and bidding systems, but this one just seems different.

    19.7 Acres
    Site is flat inside of the fenced in area, and has a large mound along the entire front of the property. Slight slope, nothing a zero turn couldn't handle.

    What do you think?

    Aerial Lawn Photo.jpg

    aerial lawn image.jpg
     
  2. APLUS LAWN CARE

    APLUS LAWN CARE LawnSite Senior Member
    Male, from North Missouri
    Posts: 587

    My price on this project (site unseen) would be around $1,000. It is hard to tell in the arial pictures how much trimming there is to do, so it actually might be more than $1,000.
     
  3. bah1491

    bah1491 LawnSite Member
    Posts: 137

    I believe that one laborer could complete the string trimming in about 4 hours. its all asphalt, minimal edging, and very little obstacles. However their is a chain link fence bordering the entire property.
     
  4. APLUS LAWN CARE

    APLUS LAWN CARE LawnSite Senior Member
    Male, from North Missouri
    Posts: 587

    I usually charge about $50 per acre on properties like these. So, based that there is only 4 hours of trimming I would still probably charge about $1,000. Commercial properties can be extremely competitive so that price may not be acceptable to them. If I was bidding on it, I would try to find ways I could save time and maybe come down on the price a little. I don't advise you to base your price off my price because we are in different regions but maybe it will give you a jumping off point.
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  5. bah1491

    bah1491 LawnSite Member
    Posts: 137

    these properties around here are usually so competitive..... a school I have been bidding on for 3 years has been contracted at $435 per week including 21 acres and about 5 hours of trimming. but they allow glyphosate applications on all fencelines.

    I was thinking we could still be profitable around $700, but its hard to say.

    heres where im at:
    19.7 acres
    858,000 SF

    858,000SF of turf / 87,000 SF per 60" mower hour= 9.86 hours mowing
    Trimming = 4 man hours
    Blowing = 1 Man Hour
    Drive Time= 25 minutes each way = 1 hour

    10+4+1+1 =16 man hours

    16 man hours x $35 per man hour = $560.00 !!

    this is what screw me up, it looks like it SHOULD be around $700 - $1,000 per cut
     
  6. Snyder's Lawn Inc

    Snyder's Lawn Inc LawnSite Platinum Member
    Posts: 4,541

    I was going say around 600 with 8 man hrs with my set up in my area
     
  7. Sharps_lawn&landscaping

    Sharps_lawn&landscaping LawnSite Member
    from TN
    Posts: 83

    Pricing that way on mowing your man hours should be around 40 to 50. Mowing per man hour has to be figured in higher than just general labor because of the machinery you are using.
     
  8. bah1491

    bah1491 LawnSite Member
    Posts: 137

    with my overhead and profit, we price at $35 per man hour, and on a competitive bid usually down to $33. i know for a fact that 10 mil. a year companies in NE ohio are pricing at $33 per man hour. obviously running a 3-5 % profit margin.

    we are able to charge the $40-$50 on high end residential. however, we do not target ANY residential, only commercial. large Commercial is cut throat here....
     
  9. herler

    herler LawnSite Fanatic
    Posts: 5,145

    I was just thinking that myself, I wouldn't go over 2 and they're going to call us lowballers but we're pricing $32.91 a man hour running 2.903 - 4.798% profit margins.
     
  10. bah1491

    bah1491 LawnSite Member
    Posts: 137

    Exactly, to secure these large commercial contracts its seems you have to operate as a "lean bare bones EFFICIENT " business. We run brand new machines, brand new trucks, uniformed employees, but at the end of the year our profit is around 6-10%. Which I am very happy with, considering its part of my model to have all new, fleet maintained equipment.

    Back to the $50 per machine/ man hour. Let me know when you win a 20 acre commercial at that rate. If you do, that business won't be in business much longer or they need to fire the person sending out the RFP's lol.
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