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By the hour....

Discussion in 'Lawn Mowing' started by LwnmwrMan22, Mar 6, 2008.

  1. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    Would you take on a large, national store, 1 location, if you knew all the maintenance was strictly time and materials?
  2. txgrassguy

    txgrassguy LawnSite Gold Member
    Posts: 3,083

    With the understanding that I set the T&M pricing guidelines - Yes.
    If the store is saying what they will pay per hour for T&M, then No I would not.
    Customers do not dictate pricing guidelines for my business, that is what I do to ensure profitability.
    This said I have had several T&M only accounts where I presented what the T&M would be, the client agreed and I did very well.
    I did learn, however, to inform the client when a change to the T (time) part was occurring for whatever reason so they weren't alarmed at the invoice amounts being different then before.
  3. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    Here's a little more info.....

    I've been doing the location for 10+ years.

    Now they have a new store at the same location.

    Now they want the corporate scope of work done, so I quoted it directly from the scope of work.

    My price last year for what the manager wanted done was $6,500 for the entire year.

    This year, the bid was $16,800 for the extra work that the scope of work calls for, plus I raised my hourly rate from $60 / hour to $75 / hour.

    After all was added up, sales tax included, they didn't want to pay the $2800 per month for 6 months.

    BUT, they will do the entire scope of work at a rate of $75 / man hour, plus the cost of supplies.

    I don't understand the mentality, because it really doesn't cause me to push through the property and get on to the next one, other than my schedule is already overbooked.

    I would think that as a manager, that you would want the fixed monthly price and know that I'm responsible for everything outside.

    Now I'm responsible for everything outside, just at an hourly rate.
  4. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    So make sure that it costs them double
  5. joshco84

    joshco84 LawnSite Senior Member
    Posts: 411

    Dont take longer that you have to on the job. it would ruin your relationship with the company that you have worked so hard to build up. Just wait till the end of the year, and then let them compare what it cost this year to what you bid it to them at. If you bid it at the right amount of hours and using your regular hourly rate, it should be damn close.

  6. turfsolutions

    turfsolutions LawnSite Senior Member
    Posts: 852

    I personally like charging by the hour as long as I can get what I want. Takes the guess work out of it. $75 per manhour is a great deal for my area.
  7. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    Great deal for you, or for your customer??

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