Large monthly numbers

Discussion in 'Lawn Mowing' started by DFW Area Landscaper, Aug 2, 2004.

  1. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    I'm bidding on my very first commercial contract. It's a home owners association. I know people have said to run from these, but I need everything I can get. I'm focusing 100% on 12 month, maintain everything, commercial contracts from here on. No more interest in residential.

    Anyway, it's 100 homes with three entrances. The homes are probably in the $275 to $300K range. They want me to bid on maintaining the three entrances.

    This is my very first bid at a real commercial maintenance contract. I'm including everything in my price...fire ants...weed & feed...flowering annuals...mulching the beds twice a year...core aeration once a year...merit for all the shrubs and flowers...merit for grubs in the lawn...overseeding with winter rye...mowing in the winter...pruning trees once a year...trimming shrubs 6 times per year...picking up trash...de-weeding beds twice a month...sprinkler system control...sprinkler head inspection...other stuff too...it's everything.

    Anyway, when you inlcude everything, it's a lot of money. I'm coming up with a price of $547.00 per month before any flowers or flower maintenance is included.

    But then when I step back and look at it from another angle, it's less than $6.00 per homer owner per month.

    What expenses do HOA's typically have besides the landscape maintenance bill? I can't think of any myself. Unless those who run the HOA get salary for their time or something.

    Later,
    DFW Area Landscaper
     
  2. qualitylandscaping

    qualitylandscaping LawnSite Bronze Member
    Posts: 1,581

    are you just doing the entrances or the homes too?

    $500+ for everything is cheap cheap cheap

    $500+ for the entrances sounds ok, depending on how big they are..
     
  3. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    It's three entrances. If anything, I'm worried about winning the business and kicking myself for 12 months for being so stupid with low prices. At the same time, I'm worried that my bid won't be in the ball park because it's way too high.

    Oh well. Just gotta submit enough bids and sooner or later you ought to win some business I would guess.

    Later,
    DFW Area Landscaper
     
  4. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    My HOA has a large pool and tennis courts which eat up a lot of money.
     
  5. lawnmasters2004

    lawnmasters2004 LawnSite Member
    Posts: 42

    well i wouldnt worry about your 6 bucks a homeowner to be honest... i got a contract with a HOA that had 26 town homes with regular 1/4 acre lots and charged 19.50 per lawn a week so that is 78 dollars a month of the fees going to taking care of their lawn and each homeowner paid like 100 bucks a month to the HOA.... now this is only for like 7 months out of the year but i dont see how your 6 bucks could lose you the bid... i would say your bid with all that you are including should be like twice what you are going to charge... thats just me though
     
  6. lawnmasters2004

    lawnmasters2004 LawnSite Member
    Posts: 42

    also... peter praun, a big time architect that got second in the rebuild of the WTC, told me that you need to shoot bids that will make you comfortable in the long run and make it worth your while to show up everyday... so basically not to be discouraged by being turned down on bids
     
  7. BCSteel

    BCSteel LawnSite Senior Member
    Posts: 876

    I dont know if your talking about just the entrances or the whole prop. If its the whole prop, that sounds like a really low price. For just the entrances, I couldnt say cause I have no idea how big they are.

    Most of my commercial props pay between $15 - $30 per unit per month but I only prune 2x per year, mulching is extra and weeds are taken care of with pre and post ems 2x per year with minimal hand weeding needed.
     
  8. rockhouse

    rockhouse LawnSite Member
    Posts: 42

    Take all of the commercial work you want. Just leave me the $20.00 duplexes. At 15 minutes apiece & 8 at a time I can make $160.00 in 2 hours with NO shrubs, weeding, spraying, planting, & most importantly worrying about being undercut by someone else.

    It's the little ones that pay the best.
     
  9. Avery

    Avery LawnSite Bronze Member
    Posts: 1,389

    That is way cheap IMO. Granted I have not seen the property but that is less than a 1/3 of what my cheapest HMO pays. Most pay more than that a week. There are lots of other items they have to pay for. Pools, tennis courts, clubhouses, roads, etc....

    Good luck with the bid....
     
  10. tx_angler

    tx_angler LawnSite Senior Member
    Posts: 278

    DFW,

    Here's a link to a HOA budget in Forney, TX. There is only one entrance that has a guard house (I've never seen anyone in it) and two or three exits.

    Please note the references to mowing along 1641. This area is easily 13+ acres and is a drainage ditch for the entire subdivision therefore retains water long after the other areas are dry. The budgeted amount is 325/month to maintain this area.

    The fence along 1641 is a wrought iron fence easily 6 or 7 feet high and the 5,000 in their repair budget includes painting this fence each year.

    Earlier this year I saw a guy on what looked like a 52/60" ZTR cutting the 13 acre area but he has since quit. I know I saw him stuck in the mud several times.
     

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