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Bidding help

Discussion in 'Starting a Lawn Care Business' started by Cuttin 7N7, Mar 14, 2005.

  1. Cuttin 7N7

    Cuttin 7N7 LawnSite Member
    Posts: 10

    I have just started a lawn service and would like some guide lines for bidding commercial and residential. Just got liscenses and insurance, what is the minumum policy to go with. Business is a DBA should i consider LLC, I have been told that there a loop holes that allow them to go after you directly any way. Any help on any or all of these matters would be greatly appreciated.
    First tread!
     
  2. cklands

    cklands LawnSite Senior Member
    from MA
    Posts: 360

    Have you landscaped at all before this? I found that my sqft pricing is a little lower for commercial props than it is for the residential props. The benefit to the bigger commercial props is that there is less drivetime etc so although the pricing methods are a little lower I still make more money in the long run.
     
  3. Cuttin 7N7

    Cuttin 7N7 LawnSite Member
    Posts: 10

    I worked for someone else and never really got into the formulas on figuring the jobs but do know what is involved. I plan to start out slow and small on landscaping side of business, currently getting started and tring to get positive cash flow. As of now all I am doing is spending money on equipment and insurance. But within first 2 days of word of mouth advertising have picked up 3 jobs. First job is a clean up any help on this would also be appreciated.
     
  4. cklands

    cklands LawnSite Senior Member
    from MA
    Posts: 360

    My clean ups are all billed by the hour. I could tell you how much I get per hour but what I need to get an hour is not going to be the same as what you need per hour. That said figure out what your costs per hour are for things such as fuel, equip, ins etc. Try and figure out how long the jobs will take and add what you want to make on top of your costs. Make sure you charge enough. Remember that one day your costs will rise as you grow. you do not want to have to all of a sudden double your price on a customer. Hope this helps a little. Good Luck and welcome to Lawnsite.
     
  5. Cuttin 7N7

    Cuttin 7N7 LawnSite Member
    Posts: 10

    Insurance do you just charge a flat rate to all customers.
     
  6. cklands

    cklands LawnSite Senior Member
    from MA
    Posts: 360

    A flat rate for insurance????? You lost me. I know what my costs per hour are. I then add my profit on top of that.
     
  7. Cuttin 7N7

    Cuttin 7N7 LawnSite Member
    Posts: 10

    my insurance is a base price for a year do you figure like 5 dollars per cut or job just for insurance or is there some other method.
     
  8. cklands

    cklands LawnSite Senior Member
    from MA
    Posts: 360

    If your insurance is say $1000 per year and you are going to have 500 hours of work for the year than the insurance costs would be $2 per hour. Now do the same thing with your fuel etc.
     
  9. Cuttin 7N7

    Cuttin 7N7 LawnSite Member
    Posts: 10

    Fuel is starting to get outragous in Lousiana, how are the prices in your area.
    :realmad:
     
  10. cklands

    cklands LawnSite Senior Member
    from MA
    Posts: 360

    We are right around $2 per gallon for 87 octane. I am running 2 full time maintenance crews and 3 trucks, looking to add a 4th truck and another crew this season. Yah gas prices suck. :angry: :cry:
     

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