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priced town homes. surprised at larger companies prices.

Discussion in 'Lawn Mowing' started by Sharps_lawn&landscaping, Jan 20, 2013.

  1. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 12,957

    There are a few companies in our area that have a strategy to build the business and then sell. So as long as they meet payroll they are fine.
    To them they need customers and a lot of them. One company sold out then came back in 7 years and building business again.
     
  2. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    Most people here are small. Many solo or they run one truck with 1 or 2 helpers.

    The solo LCO that does 40 lawns a week clearing $8 profit each is going to make $320 for himself.

    The big company that has same work per truck at the same profit for example has 10 trucks makes the owner $3,200 for the week.
    The big company that has 20 trucks makes $6,400 for the week for the owner.

    There is more then one way to value what a good profit is.
     
  3. Sharps_lawn&landscaping

    Sharps_lawn&landscaping LawnSite Member
    from TN
    Posts: 83


    Well you let me know how that 8 percent works for you. Ill be honest i think its a bunch of stupidity. For all the trouble you would have to go through with the mind set of clearing so little profit. So if you did ONE MILLION dollars in revenue, lets just say grossed. Then all you got out of all that headache was 80,000 dollars? You really think thats a good philosophy. When most solo operations make half of that amount. I understand it would work for someone like trugreen but im referring to operations that employ 4 to 50 people.
     
  4. Sharps_lawn&landscaping

    Sharps_lawn&landscaping LawnSite Member
    from TN
    Posts: 83

    And of course they chose the cheapest group. Called me yesterday. Doesn't happen all the time but I had a feeling it would.
     
  5. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 12,957

    We always ask them to allow us a chance to match. Sometimes they give
    you the details and find that other bids don't include all the things you bid. Sorry it didn't work out....hard to lose bids.
     
  6. TX Easymoney

    TX Easymoney LawnSite Platinum Member
    Posts: 4,063

    The part that they don't tell you is the big million dolar operation also is building equity in trucks, equipment ...worth and that dude likly has guys to do most everything so he can take vacations etc....they also take low margins so they can make the big bucks on the extras.....
     
  7. herler

    herler LawnSite Fanatic
    Posts: 5,145

    Sounds to me like a bunch of lazy bums, anyone could have bid that at $30 and been King of the Hill but kids today, they don't want to get out there and work for a dollar anymore, guess they'd rather sit at home playing the Xbox3 but then again it all evens itself out over time.
     
  8. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    After paying all costs and clearing $320 as a solo is not going to work for me. Though is works for Brickman and the other large outfits.
     
  9. clydebusa

    clydebusa LawnSite Bronze Member
    Posts: 1,660

    The big company are the Wal-Mart's of the competition
     
  10. trooper8870

    trooper8870 LawnSite Member
    Posts: 235

    I have stopped trying to figure out how everybody else bids their jobs. You can take 5 LCO's, put them in a room with the same bid packet and all 5 will come back different. Alot different. I just bid a commercial facility. I was given the bid from another LCO to reference. Even though the price was obscured, I could still see what he quoted. I was $8,000.00 a year over his bid and was nervous at that. There is no consistancy in what we do. From the guys doing it for beer money and trying to clear $10.00 per hour to the guys who do this for a living that try to clear $60.00 per hour, there is just know consistancy in the pricing. I have given up on commercial properties. Folks lose their minds when it comes to bidding them. In my opinion, it does not matter if you are cutting 20 one acre residential lots or one 20 acre commercial facility. It is still hot, dirty and very tiring work. Expenses are expenses. Charge them for what you do, and have enough profit in it to make it worth doing. By the way, the big commercial properties are not going to fix or replace your equipment when it breaks!!
     

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