Commercial Maintenance Accounts

Discussion in 'Lawn Mowing' started by Landscare, Nov 18, 2004.

  1. Landscare

    Landscare LawnSite Member
    Posts: 17

    I am in Colorado, we are a small commercial only maintenance company. I am curious what people are charging per square foot in Colorado and other areas.

    We are at about 15 cents a square foot, that is just to compete with the bigger companies.

    Let me know
     
  2. tiedeman

    tiedeman LawnSite Fanatic
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    Posts: 8,745

    are you talking about charging lawn and landscaping maintenance by the square foot?
     
  3. tx_angler

    tx_angler LawnSite Senior Member
    Posts: 278

    Can't be mowing cause at $.15 per square foot that only comes to $6,534 an acre.
     
  4. Landscare

    Landscare LawnSite Member
    Posts: 17

    I am talking about full maintenance contracts, for instance if there was a property that was 250.000 sq ft of grass we would be charging around $37,000. yet we are still losing bids to bigger companies who are charging much less, I am having a hard time figuring out how they can do it for so cheap.

    These prices are for full year contracts, includes everything from mowings to ferts, weed control both rocks and turf, prunings twice per year, and weekly sprinkler checks... there is more...

    The only thing it does not include is time and material things like sprinkler repairs etc...

    Tru Green Landcare who is one of our biggest competetors is charging 15 cents per square foot.

    I think that the market is just more competitive in this area, I dont know thats why I am asking
     
  5. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    have you ever thought about breaking down each service first, instead of the by charging everything by square feet, to see where you might be charging too much or too little or just enough
     
  6. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    250,000 sq ft of grass would be just over 5.5 acres. Unless you've got ALOT of landscape materials to maintain every year, I don't know of alot of places you're going to get $37,000 / year to maintain 5.5 acres. Now this is in my area of the country, where we don't have sprawling industrial places. 5.5 acres would pretty much be chewed up with the building, parking lot, dock areas, etc.

    You've got to have your numbers messed somewhere. It's probably .015 / sq ft.

    I mow approx. 90 acres here in MN for a school. At .15 / sqft, that would be $592,110 / year, JUST for the mowing. Now, I get $35,000 for the mowing, and Chemlawn comes in for 1 app of broadleaf / year for the weeds at approx. $4500 / year. That's roughly $40,000 for the year.

    Now, if you were doing it at .0015 / sqft, that would be right in line with what is being charged around here for straight mowing.

    That's for my by-far cheapest account, sq ft wise.

    Normally I'd be up around .015 (+/-) / sq ft for a full service contract, including the plowing, spraying, landscape maintenance, etc.
     
  7. Landscare

    Landscare LawnSite Member
    Posts: 17

    if we did it at .015 then the contract would only be 3,750 for the enitre year!!!!!!

    That is definately not right...

    I am doing properties that are 4000 sq ft for that much...

    I guess it is just a difference in the markets...

    For instance we dont charge 37000 for just the mowing it includes everthing from the ferts, weed control, pruning, aerating, leaf removal, pruning, bed care, sprinkler checks etc...

    Maybe it is just the cost of living difference between the two states I dont know. Colorado is friken expensive... I know that we are in the ball park of the other companies.

    I have tried breaking it down piece by piece and the numbers add up the same if I was to go any lower than where I am at I wouldnt be able to make payroll and other bills...

    at .15 per square ft we are making about 2% profit on the contract
     
  8. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    if that is the price, then stick with it. If you keep on losing over and over again accounts then I would look at your numbers and the operation of business. But I feel if you get at least 50% of accounts with those numbers, then stick with it
     
  9. Landscare

    Landscare LawnSite Member
    Posts: 17

    We just go off of square ft of grass, so the 250,000 sq ft is all grass, this dosent even include the bed areas, we just include them in with the turf sq footage...

    Its confusing I know
     
  10. Landscare

    Landscare LawnSite Member
    Posts: 17

    thanks tide, I appreciate it.. Its just nice to have this arena to see what other people think, sometimes I get trapped in my own little world and its hard to see the outside things
     

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