School bid. What do you think?

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

  1. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,446

    Without question, you will absolutely default on that contract, and hopefully, if the board has any sense, you will not be awarded this to begin with. Have you actually run the numbers? If not, here you go:


    And this doesn't include the bush trimming line item you've lumped in to the mowing bid.
  2. ReddensLawnCare

    ReddensLawnCare LawnSite Bronze Member
    Posts: 1,652

    I honestly have no idea without seeing it. My largest property is a 3 acre HOA that takes me and another guy around 1.15 hrs and about 6 hrs of shrub trimming a year and spraying roundup in cracks and I get a little over 6K a year for that. just mowing, but that is around 25 cuts. Honestly it wouldnt surprise me if it went for 60K a year total but I really have no clue without seeing it. Feel free to call me at 704-796-1308 if you have any questions. I am available anytime. I may be able to help you out that way a lot better
  3. greenstar lawn

    greenstar lawn LawnSite Senior Member
    Posts: 648

    Yazzy why don't you duduct all your costs from that 13g(tax, ins, equipment, fuel, wear and tear, employees, and your hr wage) and tell me if you think that number is correct?
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  4. yazzy

    yazzy LawnSite Member
    Posts: 19

    This is exactly the reason why I asked for advice. Obviously I'm just a one man show so no employees but myself.

    All the campuses are largely open, trees minimal, terrain relatively flat with a few little rolling slopes.

    No, I haven't completely factored in expenses, but I know with my other employer we ran through about $200 in diesel every two weeks in our 3 JD 997s on 100 acres of turf a week. Granted diesel is more efficient than gas, but I digress.

    I'm used to being able to jump on a big nice fancy mower and hit the turf, so all this being a business owner stuff is completely new to me. I appreciate little bits of advice as it will help me make better decisions on how to bid and budget, not just this job but any job.
  5. ReddensLawnCare

    ReddensLawnCare LawnSite Bronze Member
    Posts: 1,652

    He didn't say that. He might. If we see a post next week that says " I got the bid" then I will assume he didn't listen. Haha
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  6. greenstar lawn

    greenstar lawn LawnSite Senior Member
    Posts: 648

    Yazzy please take his advice
    Posted via Mobile Device
  7. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,446

    The $10.43/acre number is pre-expense.

    You're really not ready to bid something like this. You should really think about following the advice of starting with smaller accounts, gain the business knowledge, and then work your way up.
  8. Spring Valley Lawn Service

    Spring Valley Lawn Service LawnSite Member
    Posts: 142

    For me to mow that at the cost you gave I might make 20 an hour using a 48 inch toro z. It costs ten to run it an hour.
  9. Outdoor Services

    Outdoor Services LawnSite Senior Member
    Posts: 283

    A little advice:
    This may look like a great way to grow your new business fast. Young man, Rome was not built in one day!
    Putting all your eggs in one basket is very high risk at any stage of a business. Yes being in business you have to take risks, but better to have many checks feeding you than just one.
    I think you are better off working for local small businesses and grow out from there.
    Government contracts are not the cream of the crock. They are not service quality based but price based. The board has the power to terminate the contract if you do not perform to the contract standards.
  10. Durabird02

    Durabird02 LawnSite Member
    from Indiana
    Posts: 144

    Okay, first off, how long will it take you to mow 46 acres? You don't know because you don't have the equipment to know how fast you can mow an acre. I would say the industry average is between 1.5-2 acres an hour. So say you can mow 1.5 acres an hour, that's 30.67 hours a week to mow. If you are bidding $9200 for mowing, that's $9200 / 20 mowings = $460/mow and $15.00. After you factor in fuel, your time, taxes, insurance....etc, you won't make anything. Plus there will be a lot of wear and tear on your equipment because im sure it isn't the smoothest ground.

    I would consider making your bottom dollar, break even price, about double or even triple where you are at right now. It's going to be a lot of work, and if you aren't making your top dollar per hour, it's going to keep you too busy to bid work that will actually make you money. Don't worry about what it has gone for in the past, bid it where you need to bid it to make money. If you do not get it, you will be better off that way.

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