1st commercial bid.

Discussion in 'Lawn Mowing' started by Rhinox29, Oct 29, 2005.

  1. Rhinox29

    Rhinox29 LawnSite Member
    Posts: 134

    I am just starting out in the business and have been reading this site for a while. It has been a big help to me since I am just getting started. Here is my question. My son just moved into his newely completed school. I was helping them move with my lawn service trailer and the principle saw my signs on the trailer. She ask me if I wanted to bid on servicing the property. Of course I said sure. This would be my biggest gig yet. It is 2 1/2 acres of grass needing mowed and trimmed. It has no trees and all flat except for around a retention pond. I am not sure how much to charge? She is excepting 3 bids and I really would like to nail this one down. As I said I am just starting out and I do not have alot of equipment. We have a 42 inch mtd rider we use and a 22 inch craftsmen push mower plus trimmer and blower. It would be my dad and myself. I Know this is not much to work with equipment wise. But I wanted to have some work to create money before I purchased the good stuff. I thank you for any help you pros could give me on getting this bid. Sorry so long..
    Oh and yes we are insured and licensed.
     
  2. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    I do both county & state work .... I too cut a small school which the county uses to house foster children before they are adopted

    They should or will at one point ask fore WC ..... if you inc or llc you can get an officer exempt .... so no real big deal ... but the cost on general employees will be bout $8.76 per $100 of payroll .... general liability requirement's .... at least here in Brevard is $1M & proof of commercial vehicle insurance

    If you are going to fert no big deal BUT if includes pest .... your gonna have to show the paper work .... again .... no big deal as I just sub this work out anywho

    We are going into "dormant season" which is cutting every other week .... it might be easier to sell the service at the "per cut" price until we go back to weekly visits & than a monthly billing

    ie .... say the monthly price would be $900 which is $260 per cut (based on 42 visits) .... your billing would be $520 if you only cut it 2 times in say Nov.

    Also fore the most part they want all extras rolled into the monthly price .... mulch, fall-spring clean up, hedging etc ..... so your gonna have to figure your own hourly cost ..... times the number of occurrences .... ( hedging ... say is 4 times yearly ....n you figure its gonna cost say $200 per hedging .... or $800 per year .... or spread an extra $67 per month)

    Gonna need a good legal statement .... which covers your butt if they cancel early .... as all extras or cuts must be "prorated" too actual money received compared to actual services per formed .....

    This might sound confusing .... but what I'm saying is .... say you are on monthly billing ....n its $900 per month .... but in one month you really cut it 5 times .... well with the pre cut of $260 you really could have invoiced fore $1300

    The reason most commercials like the same price every month is fore budgeting .... reason I like it is my income does not flex in the winter months .... basically .... this is when I make my real money

    I can give you a price as my equip is different .... bid according to your cost .... forget the $1 minute "rule" ... if everyone here was getting $1 per minute they'd be making $2400 per week per employee or $120K per year ... bid at what you need to cover cost & make a profit

    Good Luck
     
  3. Rhinox29

    Rhinox29 LawnSite Member
    Posts: 134

    Thank You for taking the time out to help a greenhorn. This Info will be a big help. Much appreciated.
     
  4. whiteslawnservices

    whiteslawnservices LawnSite Member
    Posts: 28

    hey i hear you new in business thats great!!!!! we bid acording to size but just starting out if there is 10 acres or 20 i get like 250-300 per cut but listen stay low and watch it grow hmmmm do your yearly commercial contracts like gas stations, banks 80-150 per cut and they own 5-10 is a great yearly account stay small commercial. you make more money and you get more accounts under ya.. hope you do great get ya some references then go to larger accounts just a few words of advice stay small commercial your first 2 years then your ready with better equipment?
     
  5. whiteslawnservices

    whiteslawnservices LawnSite Member
    Posts: 28

    go by home depo get ya a zero turn caddett, toro there cheap and faster easyer to get around trees too saves alot of time.
     

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