Commercial bidding process question new i swear

Discussion in 'Starting a Lawn Care Business' started by R&T Services, Aug 6, 2011.

  1. R&T Services

    R&T Services LawnSite Member
    Posts: 21

    I understand i'll need to fill out a bid sheet never done it before with commercial. My main question is do they tell you what they need like a majority of them? or do you just know they need x amount of mulch and just mowing and bid that on your own sheet? deffinitley not rushing this just figured when i do put my foot in the door I can be ready.

    My hourly rate is $28 a hour setting me $2 lower than the competition which ranges from $30-45 depending on the operation.
    Would I when I bid just figure 2 guys 1 hour $56 then figure out mulch or do you you set a hourly rate per week?

    If anyone could give me some answers it would be much appreciated.
     
  2. Angelo585

    Angelo585 LawnSite Member
    Posts: 123

  3. R&T Services

    R&T Services LawnSite Member
    Posts: 21

    Yup already read that one didn't answer my question I've searched all over this is a more in depth question if im not clear on what im asking by all means let me know
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  4. Snyder's Lawn Inc

    Snyder's Lawn Inc LawnSite Platinum Member
    Posts: 4,541

    Most Commercial Job ask for workmans Comp do you have that That might be reason there hourly rates are higher then yours
     
  5. JDiepstra

    JDiepstra LawnSite Bronze Member
    Posts: 1,511

    $28 per hour... Explains the quesions hes asking.
     
  6. djagusch

    djagusch LawnSite Platinum Member
    from MN
    Posts: 4,170

    Write down all the services you believe the property needs. Figure your cost (labor, material, equipment, overhead), add profit (yes its a dirty word). Divided that number over the billing period (12months, 7 months, etc).

    After all that look at the work it will be and ask yourself "is it worth it?", sometimes it is sometimes it is not. Adjust the price if it is not.

    Just a hint figuring 28/hr will not be worth it. Doesn't matter if you run a used w/b or new ztr with min wage $28/hr has no profit to the biz owner.
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  7. R&T Services

    R&T Services LawnSite Member
    Posts: 21

    $28 isn't including gas there or in mowers so that's why im a little on the low side how much is workmans comp typically? Do I need it if im solo?

    Djagusch my main question is does the person your giving the bid to tell you what needs to be done? Do they have the contract written for x mows x amount of mulch? If so honestly be a lot easier I know for a fact 1 commerical place around me does it just wondering on the small banks and lawyers offices
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  8. djagusch

    djagusch LawnSite Platinum Member
    from MN
    Posts: 4,170

    When you talk to them prior to giving them a quote mention services that you find they need. If there is something that is important to them they will tell you that also. You need to sell services not just drop off a bid without knowing their needs.

    I personally don't think they care how often you cut it as long as it looks good. So I put a height span 3" to 4.5" the grass will be maintained. For shrubs fert I put in how often but others may not.

    You need to find out what works in your area.

    If you have help you need work comp. Talk to tour insurance agent for quotes. Do you pay taxes? Does lawn care get sales tax in your state?
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  9. Angelo585

    Angelo585 LawnSite Member
    Posts: 123

    As a business owner and a Green Industry professional, you should know the what the mowing season consists of for your geographical area, in NYS the season can go from late March to Mid November depending where you are located in the state, so anywhere from 30 to 37 potential cuts. You need to figure that out for your area. Most commercial accounts will provide a spec sheet with an outline of services, you then need to walk and measure the property yourself... do not take what someone else tells you verbatim... for instance a spec sheet may say 50 yds of mulch at 3" deep, you measure 60... see where I am going? if you bid by their 50 yds then you lost $$$ cause it is actually 60 yds and you just ate it!

    This is all general business practices that you should already be aware of.

    All my commercial accounts require proof of at least 1 million in liability insurance plus proof of workman's comp coverage, I can't speak for the small commercial places like a lawyers office or doctors office or something like that. If you are dealing with a HOA or Property manager, be prepared to provide not only the above mentioned coverages, but also references from other commercial accounts you service.

    As a professional, the perspective client will also be looking to you to suggest/guide them on what they need in addition to what they are asking for.
     
  10. R&T Services

    R&T Services LawnSite Member
    Posts: 21

    Great info guys I can tell what needs to be done I just wasn't sure if they also confirmed do I need a license to do fertilizer? And sorry im in a partnership with 0 employees so how would work mans comp work I've read its x dollars per $100 made so would it go by my income?
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