How's my bid?

Discussion in 'Lawn Mowing' started by dmk395, Mar 18, 2001.

  1. dmk395

    dmk395 LawnSite Bronze Member
    from Ma
    Posts: 1,003

    Here is the situation.

    Approximately 100feet of edging, and 8 yards of mulch will be put down. My mulch cost will be about $200. There are some bushes but not too many wide open areas, but overall not too bad a job. I am thinking of quoting him at $650 for labor and supplies. I could do the whole job in about 12 hours.How does that sound?
     
  2. joshua

    joshua LawnSite Bronze Member
    Posts: 1,226

    that sounds great to me. about $37 a hour if i'm right after costs.if its a 1 man crew. still good if another guy at $10 a hour.
     
  3. I dunno can you live with 32.3% (my estimated labor and equipment cost is $20/hr)gross profit margin?

    Do you know how to figure gross profit margin?
     
  4. Barkleymut

    Barkleymut LawnSite Bronze Member
    Posts: 1,117

    $25 for a yard of mulch? Is that money tree mulch?
     
  5. dmk395

    dmk395 LawnSite Bronze Member
    from Ma
    Posts: 1,003

    Well my accounting knowledge is limited but getting better, as I am taking another class next semester at school.
    Nevertheless I think Gross Profit would be

    Sales Revenue
    -CGS
    --------
    GP

    So 650-200=450=GP

    roughly 30.7%
    The problem I have is getting mulch. None of the nurseries or mulch places give landscapers much of a deal. By picking up the mulch myself I can save a few dollars a yard, but with a pickup truck it really isn't even worth it. Where does everyone else get mulch?
     
  6. cst51

    cst51 LawnSite Member
    Posts: 72

    If I were doing the mulching job I would charge about 450.00. (Just mulching!!) I charge 55.00 a yard to Supply and Apply.
     
  7. WRONG!!!! WRONG!!!AND MORE wrong!!

    You forgot to include one important thing:

    Where did you include your labor, equipment and overhead costs?

    Save your money and join the stonelist. Exactly why would you pay some "professor" who has been sheltered by ivory
    towers for knowledge? How many commercial, residental, and
    sports fields does he manage? Has he been in business for 14 years? Does he have to meet a payroll on a weekly basis
    and submit taxes every three months?
     
  8. Skookum

    Skookum LawnSite Senior Member
    Posts: 675

    dmk395,

    I am in the same boat as you on mulch. There are a few places I could buy wholesale mulch, but it would cost more in time and fuel and truck expense to go get 5 yards at a time in my dump truck. I do not put down enough annual mulch to get it delivered bulk, and if I did then I would need a loader to load it all the time, not to mention the mess of having it around. So, it is in my better "big picture" interest to just buy mulch retail from the local garden and landscape centers as well.

    This year my loose hardwood mulch will cost me $26.00 a yard. Here in town you can buy bagged cypress mulch from Wal-mart for $22.00 a yard where the local nurseries want about $45.00 a yard. Nice thing about this bagged cypress method is that there are two Wal-marts here, one on each side of town, so it is way too easy to get a load without all the driving time.

    I have maintenance accounts that I charge $125.00 per yard installed, a few of those accounts I charge a little less at $75.00 a yard. If someone calls and wants just mulch delivered this year, I am charging $31.00 a yard plus a $60.00 delivery fee for 1-5 yards. If they want it installed, I am charging $76.00 - $125.00 as per site requirements plus the $60.00 per 1-5 yard load delivery fee.

    I use both the bagged and loose mulch at different accounts. I can put down the bagged mulch much faster than the loose. If you have not thought about that, and there is a Wal-mart or home center near you, it might help trim your mulching time and boost your profit end.

    All in all though, I think you your bid sounds reasonable to me. I am not in your market though. Main thing is that your happy getting that amount.

    Good luck

    [Edited by Skookum on 03-19-2001 at 11:01 AM]
     
  9. LScom Addict

    LScom Addict LawnSite Member
    Posts: 90

    According to Professor Stones methodology I would be forced to make money by charging $865 for this bid. Thank you Professor Stone.:)Based upon the 12 hr work day proposed here, as a solo operator I have based my findings per the following. $22/hr labor, $8/hr over-head = $1.25/hr insurance, $3.50/hr equipment on this job only(my equipment is paid for, replacement costs only), $1/hr equipment storeage w/ util., $2.75/hr operating expenses(fuels, oils, etc.), $40 delivery fee, $65/day rental for bed shaper.

    Here were my calculations. $200 for mulch, $200 mark-up, $264 labor, $96 over-head, $5/yd delivery ($40), $65 renatl fee back charged to customer.
     
  10. Greenkeepers

    Greenkeepers LawnSite Senior Member
    from NE Ohio
    Posts: 695

    Larry-

    You need to go back and check your accounting books. You want to slam someone when you are WRONG WRONG WRONG.......

    Gross profit is exactly what DMK said.

    Sales
    - COGS
    ------------
    = Gross profit

    - operating expenses (sga, salaries, ins, equip, etc...)
    -------------
    = Income from operations

    + or - other income and expenses (interest, other etc...)
    -------------

    = NET INCOME

    So to correct yourself you need to ask about net income and not gross profit. Salaries and wages can be considered COGS but usually only in a manufacturing environment which we are not in. So therefore they would be in SGA (selling,general and administrative).....

    Just thought that you should have the story straight before you go and slam people and tell them the wrong info....
     

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