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Help in bidding residential neighborhood

Discussion in 'Starting a Lawn Care Business' started by Desertblm, Jan 26, 2004.

  1. Desertblm

    Desertblm LawnSite Member
    Posts: 3

    I need submit a bid for a neighborhood do to all common areas in the neighborhood i figure i will have 3 man crew there for 6 hours once a week at $7 an hour for each employee how much should i Bid!!
  2. KDJ

    KDJ LawnSite Senior Member
    Posts: 325

    37,800.00 Per yr
  3. Desertblm

    Desertblm LawnSite Member
    Posts: 3

    how did u get those numbers
  4. aries

    aries LawnSite Senior Member
    from nj
    Posts: 334

    I think what KDJ is trying to tell you is that you must figure what your hourly rate would be in your area not at what you pay your men but what you would be getting for example you say that 3 men at $7.00 per hr at your cost now lets say you hr rate would be 65.00 to 75.00 per hr than every cut would be $1170.00 @ $65.00 per hr rate depending on the area you are in so take that x 4 cuts would be $4680 a month also depending your cutting season lets say 7 months would be $32,760.00 a year dont forget if you have to mulch ect that might be extra ! but that will give you a general idea of how to figure alot of it is based on what you want to get for your time GOODLUCK! hope this helps
  5. yardsurfer

    yardsurfer LawnSite Member
    from Orlando
    Posts: 80


    3workers x7hourly pay rate x6hours worth of work= 126$'s you have to pay them each week for doing the work.

    126$'sx4weeks= 504$'s a month for their pay.

    504$'sx7month cutting period= 3,528$'s for 7months.

    Now figure out your gas cost and whatever other expenses and then figure out how much you need to bid to make profit.
  6. yardsurfer

    yardsurfer LawnSite Member
    from Orlando
    Posts: 80

    Where did you come up with $1170@65$ per hour?
    He would have to charge 49$'s per hour to get 1,176$'s per month.

    If its going to take him 6hours to do the work every week and he charged lets say 70$'s an hour to do the work.

    70$'s per hr rate x 6hrs to do the work= 420$'s a week

    420$'s x 4weeks= 1680$ a month.

    1680per month x 7month period= 11,760$'s

    Now to my earlier post if your 3 man crew 7$'s an hour

    It would cost you 3,528$ to pay all 3 of them over the 7month period

    - 3,528$'s

    Your profit at the end of 7months= 8,232$'s

    You still have to figure out gas cost and whatever expenses.
  7. aries

    aries LawnSite Senior Member
    from nj
    Posts: 334

    What I am trying to say is he must figure out what his cost per man hr will be and what he plans on making per hr on each man like you said $70.00 per hr divide that by 3 you get about $23.34 per hr per man just giving an example not hard numbers was is it worth to do the job!
  8. twins_lawn_care

    twins_lawn_care LawnSite Senior Member
    Posts: 932

    basically, you need to have an idea on how much it costs you to run your business each hour.
    A good way to figure this out is

    Take your entire season, and figure out how many possible hours you will be working.

    Say 30 weeks, 40 hours a week, so 1200 hours.

    Now, add up all you expenses (ALL OF THEM)

    Gas, licenses, insurance, accountants, vehicles, equipment...

    add in the 1200 hours of labor at $7 per hour ($8400)

    so this is your expenses for the year (guaranteed to be low)

    say it is $15,000

    so $15,000 divided by 1200 = $12.50 per hour for you to operate at NO PROFIT AT ALL, and PAYING YOU NOTHING YET

    This is assuming you are accounting for all of your expenses, which tend to grow over the year.

    So, for this job, with you working

    3 men x 6 hours x 30 weeks = 540 hours

    540 hours x $12.50 per hour expenses = $6750

    This is what you bid to make nothing.

    Add on your profit, and there's your bid.

    So say you need to make $25 profit per hour

    $25 x 540 = $13,500

    total bid

    $6750.00 + $13,500 = $20,250

    expenses + profit = total

    These numbers are purely made up, but hope you get the idea, and this helps a bit

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