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How to bid commercial accounts for real

Discussion in 'Business Operations' started by PROCUT1, Feb 22, 2011.

  1. Scag413

    Scag413 LawnSite Bronze Member
    Posts: 1,283

    Thanks for the post, ProCut!
     
  2. adbennett

    adbennett LawnSite Member
    Posts: 5

    As one of these "newbies", I thank you. I've spent hours on the internet and hours talking to various people in the industry trying to find good advice on how to bid jobs and all I find is programs that cost over $100, and most other info is insufficient. Thanks a million. Now, time to apply it.
     
  3. mbean408

    mbean408 LawnSite Member
    Posts: 74

    wow, im happy im reading this at 19 and BEFORE i bid my first account. i would always ignore people when they told me to figure out hourly rate, profit, employee, expeneses etc. but now i get it...
     
  4. nepatsfan

    nepatsfan LawnSite Gold Member
    Posts: 3,142

    very well said!
     
  5. Kreios

    Kreios LawnSite Member
    Posts: 66

    VERY WELL SAID!!! Now I wonder how many will do a search before they ask the question.
    Posted via Mobile Device
     
  6. Lagniappe

    Lagniappe LawnSite Member
    Posts: 75

    Well put. That is where the rubber meets the road. Sometimes I wonder if it is a generational attitude. People freak out when there is not "an app for that", and the answer is not handed to them, and can't be googled.
     
  7. GG's Lawn Care

    GG's Lawn Care LawnSite Member
    Posts: 5

    Great Post!!!
     
  8. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    36 replies in a year and half of them being me.......not many....

    It requires less effort to just ask for a number and hand it in.
    Posted via Mobile Device
     
  9. Turf Logic

    Turf Logic LawnSite Member
    Posts: 243

    Awesome post procut. Unfortunately It took me a long time to figure this out as well. The only thing I didnt like was the 8% profit margin. If we can't make at least a 30% profit of the gross total we do not touch it. Sometimes I wonder if we are not all better off to stay away from mowing.
     
  10. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    I will add for anyone who has read some of my other threads. It took me a long time in business before I operated this way.

    I used "the going rate" for years both residential and commercial.

    It was many years into it that I applied this to my own business and to the customers that I already had. Thats when I realized how little I was making.

    Learning how to do this was the precursor to my "How to fail" thread.

    We took a couple of months and did a complete evaluation of the business from top to bottom. Including following the crews on their routes with a stop watch so we knew exactly how long each property took.

    It was shocking to see accounts that I thought for sure were making us money, in reality they were costing money to do. And the opposite was true. Some of them little $25 jobs were throwing off 80% profit. While the $40,000 a year account was at 1.5% and thats only if it was done just as fast every week with no wasted time, and no breakdowns.

    If I had done this from the start, i would have had a totally different operation
     

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