Question on commercial pricing?

Discussion in 'Lawn Mowing' started by unique lawns, Jan 11, 2001.

  1. unique lawns

    unique lawns LawnSite Member
    Posts: 12

    I'm 27 years old and owner of UNIQUE LAWNS of South Florida.
    I have been serving residential properties for the last 5 years and I worked in US Lawns for 3 years as the tree crew leader,so I know the industry quite well, I decided to go commercial last year after I got my arborist certification, but my only problem is not knowing how to bid on commercial properties.I provide all the services that are needed in the landscape. I was told that by the square foot is the best way to do it. If so do you guys have an idea of what the square foot goes for in the South Fl. region? I would really appreciate your help. thanks,Oscar M.
    http://www.UNIQUELAWNS.WEB.COM
     
  2. HOMER

    HOMER LawnSite Gold Member
    Posts: 3,183

    I would base my bid on hours, not sq. ft. If you feel good about your residential bids then take a larger commercial area and break it down into smaller plots, figure the amount of time for each section and add them up. Chances are you will start out overbidding everybody then you'll see the light and adjust accordingly or stick to residential. Dollar for dollar I still feel residential is more profitable than commercial. I hope this helps, experience is the best teacher though.
     
  3. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662

    I talked to a guy who's from Florida and lives here now. (Still trying to figure that one out - lol.)

    He said that $1 minute was best he could recommend.

    Hope this helps.
    Kris
     
  4. TJLC

    TJLC LawnSite Bronze Member
    Posts: 1,308

    This will sound really stupid but what I do is ask them if I can cut it one time and then bid based on the time it took me. This has worked for me so far. Yes that does not mean they will accept your bid but at least there wll be less guess work involved. I'll bet you guys are all LOL.
     
  5. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    The only thing is, is that if you go by amount per hour, or "$1 per minute", does this mean that when you graduate from say, a 48 Walk behind, to a Lazer, that you should make less? Figure a square fotage and trim formula, and you can NEVER go wrong.
     
  6. unique lawns

    unique lawns LawnSite Member
    Posts: 12

    Thanks guys for your help. I recently bid on a homeowners association like you said based on man hours and equipment need, after finding out the price from the previous lawn co. I was $55.00 a year higher than them with fertilization included was $2253.00 per cut, 30 cuts a year. They liked my bid and I'm waiting for the contract to end so I can start. But in other occasions property managers have asked for specific measurement of the property and pricing by the square foot. Taht is why I wanted to get an idea of what it runs for. But like you guys said, by man hours is the best way to estimate.
    http://www.uniquelawns.web.com
     
  7. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662

    try calculating mowing using these figures:
    - use 44,000 as an acre
    - multiply your square footage by your pricing structutre
    ie. 3.50/m sf
    - multiply this number by a degree of difficulty
    from 1.5(easy) to 3(difficult)

    NOTE:We will be using $35 acre for wide open mowing and $65 acre for extensive planter beds, obstacles, and steep slopes when calulating this years bids.

    try calculating edging using these figures:
    gas or stick edgers
    - multiply (x) 50 cents per 100 linear feet(lf)
    line trimmers (turf-curb areas etc.)
    - multiply (x) 75 cents per 100-l.f.
    line trimmers (along chain link fencing)
    - multiply (x) $1 per 100-l.f.)

    Good Luck!!
    kris



    [Edited by kutnkru on 01-11-2001 at 09:41 PM]
     
  8. unique lawns

    unique lawns LawnSite Member
    Posts: 12

    kutnkru, thanks for the help. This is a big help for me, is the 3.50/m sf. the dollar amount of the fee?
     
  9. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662

    A difficulty factor of 1.5 would be bid per acre at .80 per 1000 sq.ft. of turf
    (ie. like a football field)
    - 44/m sf (x) .80/m = $35.00acre

    A difficulty factor of 3 would be bid per acre at $1.48 per 1000 sq.ft. of turf
    (ie. like a park - lots of tree rings, benches, people)
    - 44/m sf (x) 1.48/m = $65.00 acre

    Hope this is clearer.
    Kris
     
  10. unique lawns

    unique lawns LawnSite Member
    Posts: 12

    Thanks kris for your help, I understand now and that sounds just right! The numbers add up evenly now.
     

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