A first for my Company, Am I a LowBaller?

Discussion in 'Lawn Mowing' started by hortboy, Mar 25, 2004.

  1. hortboy

    hortboy LawnSite Member
    Posts: 170

    Well I said I'd never do it but I did yesterday. I locked up 65 residential yards through a property manager. I told my minimum to stop the truck was $20.00 after sitting down and going over each property I settled on doing 4 properties for $10.00 each. They are only 300 to 500 sq ft front only. I figure 10 to 12 mins tops for each one and w/ drive time that keeps me at $40.00 an hour. I hated to do it but the total revenue for the contract in the $70,000 range annually, before snow. All i could think about as he said $10.00 and i said yes was am I lawn site low baller? Just as a side note all propertied can be mowed in 2 and 1/3 days by 1 guy. So am i a scrub or not?
     
  2. Let it Grow

    Let it Grow LawnSite Senior Member
    Posts: 476

    How does that make you a lowballer. If someone else had bid those lawns at $90,000 for the year and you came along and bid them at $50,000 just because you knew that the other guy bid higher, and you knew you would get the contract at your price, then you would be a lowballer.
    If you ask me $40/hr sounds pretty good, and $70,000 per year for 2 days of work per week sounds great. I'd say you made yourself a good deal.
     
  3. Pecker

    Pecker LawnSite Bronze Member
    Posts: 1,454

    I wouldn't call you a scrub. The scrub is the guy who doesn't know better than to charge what you charged. If you can live with it, you did the right thing. Besides, $40 per hour WITH drive time isn't too bad, IMO, especially if you are solo. Also, you mentioned they are front only. Backyards are the ones that can eat up alot of time, especially with pets.
     
  4. NickN

    NickN LawnSite Bronze Member
    from Alabama
    Posts: 1,010

    Yes,you're a scrub.Now kindly direct me to those properties and I'll mow em for $70,001 per year for 1 1/3 days of work. :)
    Sounds like you did great.$1346 for 1 1/3 days work(figured on 52 weeks) ain't too bad for one guy.Let's see that's $134 per hour for 10 hours if my math is right.
    edited:Oops,it was 2 days instead of 1 1/3.
    So that's $67 per hour.Still a nice chunk of change.You could take half and invest half back into the business and really grow.Good job!
     
  5. lawnranger44

    lawnranger44 LawnSite Senior Member
    Posts: 370

    Sounds like you made a smart business decision and you saw the big picture. I need to work on doing that more! I would have trouble allowing myself to quote less than 20 on ANY lawn...
     
  6. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    If my math is correct based on 28 visits.. it would be about $100/hr

    25 hours per week times 28 weeks equals 700hrs

    $70,000 divided by 700 hours equals $100
     
  7. jajwrigh

    jajwrigh LawnSite Bronze Member
    Male, from Martinsville, IN
    Posts: 1,405

    Why do people ask all these questions? Am I a scrub? Am I a lowballer? I think if you have to ask yourself then the answer is YES!
     
  8. mjensen

    mjensen LawnSite Member
    Posts: 49

    I think that is a great deal! Congrats. I have a meeting with a managment company next week. You provided a great starting point.
     
  9. monkey9197

    monkey9197 LawnSite Member
    from NY
    Posts: 77

    WAIT NOW HOW COME WHEN SOME ON THE FORUM GETS UNDERCUT EVERYONE FROWNS UPON IT. BUT HE UNDERCUTS IT SO ITS ALRIGHT. EVERYONES HYPOCRITES. I THINK YOU DID A GOOD JOB AND MADE A NICE PENNY
     
  10. Let it Grow

    Let it Grow LawnSite Senior Member
    Posts: 476

    monkey...who did he undercut???
     

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