Has anyone charged a price this way?

Discussion in 'Lawn Mowing' started by JClawncare, Jun 7, 2006.

  1. JClawncare

    JClawncare LawnSite Member
    Posts: 72

    For the past 5yrs I have charged on the size of the yard, But this week a condo development asked me to charge on a percentage off of their maintenance fee.:confused: I have never heard of doing it this way. The maint. fee is $70.00 per month per tenant with 50 tenants. = $3500 per month. But they won't tell me what all the maint.fee covers per month. Does anyone know what they are talking about and what is the way to figure it out. Or do I quote the old way and forget it. The account would include mowing,mulching,pruning, and light landscaping.
     
  2. Let-it-mow!

    Let-it-mow! LawnSite Member
    Posts: 91

    Bid it in dollars. They can convert to a percentage if they want. They won't throw out your bid just because they have to do the division themselves.
     
  3. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    The fees should cover .... insurance, pool maintanence(if they have one) basic replacement of exterior lights, irragation checks, replinish of items if they have bathroom, work-out room, day room availiable to all members .... they usually have a small percentage set aside fore unseen cost .... such as roof repair, painting, etc

    Depending on size of facility .... the percentage is going to vary ssssooo much .... example I do a HOA which has a pool & other basic cost .....my monthly billing is almost 70% of their fees .... but I base my price on hours NOT a percentage ..... they can fiqure that with a pen n paper

    If you need $2500 per month than your service will be 71% of the fees
     
  4. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    Exactly. Nevermind all the guesswork and games. You know your costs, and yu know how much YOU will have to have to care for the entire place. take the cost, divide it by the number of residents (include the common areas, of course), and give them a price. If their fee is only 70 bucks a month, I think some red flags may be going up. That isn't very much. I don't know...depending on the units and what the yards look like...many around here go for around 10 to 15 per mow. Some are charged a few dollars more when edging is included in it. Some pricing is different, because some want the shrub pricing included right into the price, others don't. Like I say though, it all just depends on the amount of area for each yard and the amount of labor involved. Like I say, if you do it by YOUR expenses, you can't go wrong.
     
  5. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,327

    Since the condo guy brought it up...ask him what percent he wants to pay for lawn maintenance. Then you can decide if you even want to bother to bid. In our area water for common areas are part of the fee and that usually is big. I was very surprised by the one reply that the lawn part is almost 70%. Our association for homeowners pays about 30% for lawn and we have alot of common area.
     
  6. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    Very true ..... this HOA includes common grounds & yard maint on +100 homes .... the common area is just under 30% ..... bout 10 man hrs per visit ... in peak summer ... we bill monthly ....year round

    These are small less than 2k turf ....per home ....& back yard service is extra
     
  7. JClawncare

    JClawncare LawnSite Member
    Posts: 72

    What would be a good percentage then to stay around of the over all amount? They are just 1 and 2 unit townhouses no pool,workout room etc.. I added up what I'll be charging and it comes to 20% of the total amount. I thinking about between 20% - 30% is a good ball park. Which is about $14per tenant per mow.
     
  8. lawnMaster5000

    lawnMaster5000 LawnSite Senior Member
    Posts: 589

    You need to present your bid as a set cost to perform services. You can also insert a comment stating the percentage of current maintenance fees or something like that. You don't want them to go changing the fee they charge each resident and having that affect your profit. Someone that does more properties of this type may say otherwise, but I would think this is how it must be done.

    How are you to know if they are charging a reasonable amount for maintenance or not.
     

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