Commerical accounts

Discussion in 'Lawn Mowing' started by Green430, Feb 6, 2003.

  1. Green430

    Green430 LawnSite Member
    Posts: 9

    Is getting into commercial accounts really the way to go? I currently have 150 residentals, and 5 commercial jobs. The five commercial accounts are good pay, .004 per thousand sq ft., but those are far and few between. I bid on 20 different jobs through a managment company last year, and was told I was to high on all of them. Used a rate of 50 per hour per guy, and was way off. Example: 4.5 acre site, estimated 9 man hours for cutting, trimming, edging, and blowing. Scale of 1-10 probably a 5 for degree of difficulty. Priced it at $450.00 per cut, guy got it for $300. This year trying to estimate using sq.ft. Seems to be working out better, but my question is if I bid by sqft. will I still meet my bottom line with my hourly rate? example above would be bid out at 300.00, means I would have to get done in 6 man hours, and would come out to 66.00 per acre. Using a 60 exmark zt, 60 exmark wb, 36 wb, with a total of three employees.
    P.S. I know, I opened up a biggggggggggg can of worms!:blob4:
     
  2. Precision Care

    Precision Care LawnSite Member
    from Indiana
    Posts: 28

    About all I do are the H.O.A.'s. I like them because most of the time you get the hole package and most of them average about 15000 per year not including snow. I price mine the amount of time to but at 35 to 40 per hour per man. Most of mine are at least 8 man hours some up 16 man hours. If you can get two big properties done in 16 to 18 man hours you have very little travel time per property. You and one guy working all day can bring in 560 to 700 per day and your labor cost is around 120 to 150 per day that leaves you with 400 to 550 per day.
    I try and market the houses with in the community I'm at to increase the revenue.

    Good luck
    Jeff
     
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

     

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