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bidding jobs?

Discussion in 'Lawn Mowing' started by tjcezar, Apr 2, 2003.

  1. tjcezar

    tjcezar LawnSite Member
    from PA
    Posts: 237

    :confused: First year in business and I need to know how to correctly bid jobs. I have a new Yazoo 42' Zmax, two small walkbehinds and always work with another person. Is there a formula I could follow not to sell myself short?
  2. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    There is no one correct answer to billing n what one expects or gains from the service’s they provide. But I can say for myself: …. Hourly estimating (or billing if you prefer) is the way we go …. We give an estimate based on size of job (sq footage) as relates to previous time keeping we have based on previous experience …. ALL extras are based on an estimated time ….but the final real time is what is what is billed

    What we believe or think our services are worth or what it we want for a service is a fine line

    ANY Estimate should be built on solid numbers … ...==> These numbers are ones OWN DIRECT - INDIRECT - OVERHEAD COST and then PROFIT we would like to make (Such a Grey Area) ....…get these numbers FIRST ..... than we have a solid base to predict job cost ….get job cost throw in profit margin n then we get our hourly rate.

    What it cost you ….me …. Or the next guy in another state will vary …due to size n volume of monthly $$’s coming in ….thus change the expected income due to an hours worth of work.

    So what does this mean ?? …. We’ll for us ….what that means ….is …. Say hedging which takes 1 hour ….we have a minimum of 1 Hour ( You should have a Minimum for ALL Jobs you plan to offer) … I have cost ..... which I must cover no matter what …but these cost …n charges for different services have different cost n thus also different charges for those services .... did I lose you

    Whether it takes 30 –45 or 60 minutes ….hedging we charge $40.00 per hour … the dump or removal fee is extra $50 (this will vary not all want the dump …”just put it at the curb” …in that case we charge $50 …flat for the work or 1 Hour

    Understand when we do this type of work .... I already have guys doing regular maintenance at the time .... so that $40 is an extra charge ..... there is NO way I'd send anyone out just do a hedge for $40 unless it was a regular Monthly customer during normal service ..... one time calls are considered "clean-up" which has a minimum of $150

    These are my #'s ..... not any ones else .... but the thought process of having a Minimum .... Knowing the cost of YOUR business is fundamentals
  3. tjcezar

    tjcezar LawnSite Member
    from PA
    Posts: 237

    Thank you sir for your thorough reply. Any other advice would be greatly appreciated.

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