Bidding my first commercial account

Discussion in 'Starting a Lawn Care Business' started by shiznitttt, Jul 10, 2004.

  1. shiznitttt

    shiznitttt LawnSite Member
    Posts: 34

    I went today to bid a commercial account that was approximately 2.5 acres that was filled with 5 apartment buildings, and a lot that was maybe 1/2 acre. The guy is telling me that the last crew of 3 guys took 12 hours to complete all the mowing, edgeing, etc, they only had a couple of push mowers and a murray rider. So I get to thinking that my buddy and me can knock this out in around 6 hours with our equipment, and so I bid 450.00 dollars a week, and the guys says that they are wanting to get this all mowed, trimmed, edged for around 700 month. So my response was if you find someone who will do this for 700/month have them call me so I can hire them as well.
  2. rodsridentime

    rodsridentime LawnSite Member
    Posts: 5

    good for you . keep the rates up dont sell out and do it for nothing. its worth that much and if someone whats to do it for that let them lose money not you .
  3. shiznitttt

    shiznitttt LawnSite Member
    Posts: 34

    thanks for the support.
  4. Trevors Lawn Care

    Trevors Lawn Care LawnSite Bronze Member
    Posts: 1,180

    just out of curiosity...nothing else.

    Did you base your bid soley on the thought that it may only take you 6 hours... You wanted to make about 75 bucks an hour? I know that 2.5 acres of cutting may take me an hour to an hour and a half. then say another hour of trimming and edging you actually could have seriously over bid. let me know how you bid it?

  5. shiznitttt

    shiznitttt LawnSite Member
    Posts: 34

    I bid the property thinking that my buddy and myself would be able to cut the entire property in 6 hours. This does equal 75/hour split by two guys is 37.50 hour, minus gas, and wear and tear on equipment, and incidental overhead lets say that comes to 30 bucks per cut, that brings us to about 420/week. That comes out to about 35 hour per man. I thought that was a fair price to basically eat up an entire day for this one contract. Also, when I told the manager my price he stated that was in the neighborhood of what other LCO's had bid. So, for my first real big bid I was walking in the clouds, since I did all my research, and came in with the "big boys". My buddy and me are fulltime Registered Nurses and went into this business to make some real money, so I think that 30 to 40 dollars an hour is just a starting mark, and I stick by my comment, "if you can find someone to do this job for 700/800 dollars a month let me know so I can hire them". Thanks.

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    I don't have any commercial properties, but when I worked for another company I bid on many of them. Many of them are working on a fixed budget and try to go with the lowest bidder. For example, an HOA is made up of 300 houses, and each house pays XX$ per quarter. A nice chunk of this will go to maintain the community pool, tennis courts, etc. Anything left over will go towards mowing. And sometimes its not enough for us. Its usually better to overbid and ensure that you will make a profit rather that panic and go low just to get business.
  7. spcfoor

    spcfoor LawnSite Senior Member
    Posts: 261

    shiznitttt: where in tulsa r u? I am in tulsa also
  8. shiznitttt

    shiznitttt LawnSite Member
    Posts: 34

    I live in the 21st and Garnett area.
  9. bobdaduke

    bobdaduke LawnSite Member
    Posts: 79

    How does one go about bidding on HOA or Commercial Properties? At the moment, Im doing residential only but would like to get 1 or 2 commercial jobs, thx.

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