Mulch Pricing Big Job!

Discussion in 'Landscape Architecture and Design' started by fredski119, Feb 27, 2006.

  1. fredski119

    fredski119 LawnSite Member
    Posts: 42

    HEY, GUYS HERE'S MY QUESTION. BIDDING ON A MULCH JOB FOR 450 YARDS, I CALL A MULCH BLOWING COMPANY. THE GUY SAID HE WOULD DO IT FOR $43.00 PER YARD. THATS $19.350 THAT I WOULD HAVE TO PAY MY QUESTION IS HOW MUCH SHOULD I CHARGE THE CUSTOMER PER YARD. ALSO SHOULD THE MULCH BLOWING COMPANY GIVE ME A BETTER PRICE SINCE ITS A BIG MULCH JOB. I THINK HE SHOULD PRICE ME A LITTLE BIT ABOVE HIS COST. AM I WRONG OR RIGHT. :confused:
     
  2. RonB

    RonB LawnSite Senior Member
    Posts: 429

    Have you looked into renting a mulch blower? How much can you buy one for?
     
  3. grasskingindy

    grasskingindy LawnSite Member
    Posts: 2

    450 yards is going to cost about 7-8K depending on the discount he works with your local supplier. He is doing what most do 1 to 1.5 times cost as his final per yard charge. So the question you have ask is if he is willing do all the work can you negotiate his price down $3 per yard and sell the account at $50-53 per yard. He walks away with the 10k he is looking for and you make a $4500 commision for being a good salesman. Make the mulch supplier and the contractor move their numbers it all about the art of negotiation. Oh make sure you have him sign a non compete clause on the account and get your company name on his trucks while he works. Magnetic signs are great
     
  4. start2finish

    start2finish LawnSite Senior Member
    Posts: 497

    non compete clause is a good idea. What type of mulch are you specifying.
     
  5. fredski119

    fredski119 LawnSite Member
    Posts: 42

    Thanks for the advice guys i called back my mulch guy and told him lets make a deal. Since i was giving him a big mulch he said he would do it for $36.00 per yrd. Now i have to figure out what to charge the customer i know he's looking at other bids . Need to come in with a price right around the mulch blowing company would charge and stil make a buck. Can't be greedy for just sitting on my butt. :drinkup: :drinkup:
     
  6. PSUturf

    PSUturf LawnSite Senior Member
    Posts: 663

    That's a good price for blowing mulch. We charge $50 / yard to blow.
     
  7. ToroMaster

    ToroMaster LawnSite Member
    from Neenah
    Posts: 53

    I could get five semis deliver 450 yards for 4,500.00 to the job site. Then I would hire the blower company to do it for 2,000.00. You could make one heck of a profit for blowing bark around.
     
  8. rgjlawn

    rgjlawn LawnSite Member
    from midwest
    Posts: 84

    Nobody in there right mind is going to blow that mulch for 2000.00. Do you have any idea what that machine cost?:dizzy: :nono:
     
  9. Pro-Scapes

    Pro-Scapes LawnSite Platinum Member
    Posts: 4,181

    you can bet if your just bidding someone is going to be sharp on thier price. If they are willing to do all the work and all you gotta do is set it all up how much would you be happy walking away with. If you get to greedy you might loose it. If you go to low you wont be happy with your profit. Its a fine line. Knowing what they paid last year would help alot.

    man 450 yards... thats a good size job. My last one was 36 yards and if we wernt able to take the tractor and bucket in there it would of sucked because the dump site was so far from where it was going

    his price was 43 x 450 yards = 19350
    his price to you is 36 x 450 yards = 16200

    Thats $3150 for making a phone call. I bet there is alot of other guys in your area that would make that call for less profit. Non compete and plot your signs on his rig I would bid 18,950 or something to get below 19k and lock that job in sit back and watch the action. no matter how you slice or dice it thats a killer profit for a phone call.
     
  10. CAG

    CAG LawnSite Senior Member
    from ct
    Posts: 344

    If I were you their is no way I would sub that job out!!! Shop around for mulch and when your talking those numbers your going to find a good deal. I would look at from the point of I could do nothing a make a little or do the job and make a lot more. Plus if your company does it and does a good job maybe next year you can get the job without bidding it again. If they know you subbed it out they will know that you made a good chunk of change doing nothing and thats money they can save next year by taking more bids.
     

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