School bid. What do you think?

Discussion in 'Business Operations' started by yazzy, Nov 16, 2012.

  1. yazzy

    yazzy LawnSite Member
    Posts: 19

    I'm getting ready to place a bid on an upcoming mowing contract for the local school system, which has 3 schools and its central office. It's my first commercial bid to make so any thoughts would be nice. If I get this deal, I'll jump in and start getting my equipment for the job creep my way into the business.

    Calculated mowing area of the school schools is approximately 46 acres. The high school campus is approximately 30 mowing acres, while the the middle school, elementary school, and board office is 16 acres.

    I think they prefer bi-weekly mowings so I'm going with that. The contract would run from March 1 to November 30, so what...9 months?

    I've calculated approximately 20 mowings for each school, give or take a little on weather. There will also be 3 bush trimmings conducted, one in the beginning, middle, one to close out the season, and also 2 mulchings.

    This is reasonably close to some of the other contracts they awarded in the past, so my bid for the job is $13,000.

    $9200 for mowing, and the trimming and mulching at $3800.

    Reasonable?
     
    Last edited: Nov 16, 2012
  2. ReddensLawnCare

    ReddensLawnCare LawnSite Bronze Member
    Posts: 1,652

    I must be missing something. Are you saying your price for the year is 13,000? Total
     
  3. yazzy

    yazzy LawnSite Member
    Posts: 19

    Yes, $13000. That's correct. 46 acres also.

    It has been a while since I've seen the public notices on it, but I do believe that that price is fairly close to what they've been paying previous lawn care companies.
     
  4. greenstar lawn

    greenstar lawn LawnSite Senior Member
    Posts: 648

    That seems like a very low bid. You might wanna rethink your bid
    Posted via Mobile Device
     
  5. ReddensLawnCare

    ReddensLawnCare LawnSite Bronze Member
    Posts: 1,652

    WOW! I really think you are missing something. You are essentially going to mow 920 (46*20) acres for 9600?!? I am going to go out on a limb here and say without a doubt you have no idea what your costs are. If that price is really what it has been going for in the past, then that is why it is up for bid again. I looked at your last few posts and I can see you are new the business ownership side of the industry.

    You need to start small and work your way up. There is no way you can do that by yourself. You WILL loose money at 9,600. Let me put in perspective for you. About the cheapest you will find rough cut brush hogging is 40/acre. If that property was to be brush hogged it would go for 36,800 for the year. You are going to finish mow, go between properties (fuel and time) trim, blow off and edge every other week for less than a quarter of that. How did you come up with your number? Seriously. I dont want to just bash you completely (only a little). I would like to help you but i need to know what you have done so far to calculate that price. If you just saw it was done for a little more than that, and you think you can do better so you go cheaper, then you will be screwed very soon. I bet if you get to looking they are paying around 10K/ month
     
  6. ReddensLawnCare

    ReddensLawnCare LawnSite Bronze Member
    Posts: 1,652

    You will also spend way more than 13k on equipment to do that job even the least bit efficient. I saw from the other post you dont have any yet
     
  7. yazzy

    yazzy LawnSite Member
    Posts: 19

    No, no equipment yet, but as I'm sure you read from my posts I worked as a university groundskeeper for nearly 6 years so I've kinda been able see what is durable equipment and what's not so I think that will help me purchase some reasonably good equipment for a new business.

    I've got several pieces of equipment I can sell trade and help offset the initial costs, but I'm obviously not paying for this all in one swipe. A loan on the Helox is unavoidable.

    I'll post a list of my equipment purchase plans soon anyway for tips.
     
  8. ReddensLawnCare

    ReddensLawnCare LawnSite Bronze Member
    Posts: 1,652

    Please take my advice and dont bid on that. I havent even seen it but I can tell you that you will screw yourself if you get it. The worst part about being the lowest bidder is getting the job
     
  9. yazzy

    yazzy LawnSite Member
    Posts: 19

    Thanks for the advice! In all seriousness, what's your reasonable bid for this job; mowing, mulch, and bush trim? It can go a long way in helping me determine reasonable bidding prices in the future.
     
  10. greenstar lawn

    greenstar lawn LawnSite Senior Member
    Posts: 648

    Reddens you tried but he obviously is not going to listen to your advice.
    Posted via Mobile Device
     

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