What would u bid

Discussion in 'Lawn Mowing' started by dmk395, Mar 22, 2001.

  1. dmk395

    dmk395 LawnSite Bronze Member
    from Ma
    Posts: 1,003

    Here is the job. 20 yards of mulch, which will cost me about $500. I need to edge about 125 feet, and most of the areas that will be mulched are relatively open. Estimated man hours to complete the job is 24-28. How much would you charge? The reason I ask is that sometimes I think I shortchange myself.
     
  2. MJM

    MJM LawnSite Member
    Posts: 48

    just x's your man hour rate x's 24 man hrs. i would charge $840.00 in labor.
     
  3. Clinton D. Wagner

    Clinton D. Wagner LawnSite Member
    Posts: 45

    <b>DMK.....I got a question
    How many hours do you have for the
    edging was it in your labor hours?
    if so how many would be for mulch?
    how many for edging?

    Then I could give you my answer.

    Thanks</b>
     
  4. awm

    awm LawnSite Gold Member
    Posts: 3,354

    lets see 200 profit plus milage on the mulch.
    25 per hr as long as we are just talkin my sweat.
    say 25 hrs 625 plus the 500 comes to 1325.
    plus milage if much.Adjust up or down depending how much you need the job.If they let me work it in to my schedual
    and use this as a fill in 1250.In other wds no rush
     
  5. dmk395

    dmk395 LawnSite Bronze Member
    from Ma
    Posts: 1,003

    Clinton, I figured the total for the whole job. Edgeing maybe 3-4 hours. The edge is nice and defined already.
     
  6. accuratelawn

    accuratelawn LawnSite Senior Member
    Posts: 922

    $1,200.
     
  7. Clinton D. Wagner

    Clinton D. Wagner LawnSite Member
    Posts: 45

    <b>First of all:</b>

    <b>QTY&nbsp;&nbsp;(Quantity)</b>
    <b>X's U.C&nbsp;&nbsp;(What is it going to cost me per unit)</b>
    <b>= T.M.C&nbsp;&nbsp;(Total material cost)</b>
    <b>U.P.H&nbsp;&nbsp;(Units per hour a man can install)</b>
    <b>T.L.H&nbsp;&nbsp;(Total labor hours)</b>
    <b>X's.L.R&nbsp;&nbsp;(Labor Rate)</b>
    <b>T.L&M&nbsp;&nbsp;(Total labor and material cost)</b>
    <b>X's.OH.MP&nbsp;&nbsp;(My overhead mark-up percentages)"To cover all operating expenses"</b>
    <b>= Total&nbsp;&nbsp;(This is my total cost for Material and Labor Including my overhead for this line item )</b>
    <b>D.T.B.N.P&nbsp;&nbsp;(Divide total by net percentage(This is my percentage formula I use,When I want to make 35% Net on that line item, some times I use less of a percentage like 0.869565 for a 15% Net, but I better have alot more work going on that Day.)</b>
    <b>M.T.N.&nbsp;&nbsp;(My total Net) "for this line item"</b>
    <b>=T.B&nbsp;&nbsp;(This is the total bid for this line item)</b>
    <b>T.U.B.&nbsp;&nbsp;(Total unit bid) "This shows me what I'm bidding per unit"</b>
    <table border BORDERCOLOR="#FF6347">
    <th colspan=15><B>Here's how I would bid this Job </B><tr>
    <th><B>Materals needed</B></th><th><B>QTY</B></th><th><B>X's U.C</B></th><th><B>= T.M.C.</B></th><th><B>U.P.H</B></th><th><B>= T.L.H</B></th></th><th><B>X's.L.R</B></th><th><B>= T.L.C</B></th><th><B>T.L&M</B></th><th><B>X's.OH.MP</B></th><th><B>= TOTAL</B></th><th><B>D.T.B.N.P</B></th><th><B>= M.T.N</B></th><th><B>= T.B</B></th><th><B>= T.U.B</B></th><tr>
    <td><B>Mulch/Bark</B></td><td><B>20 cy</B></td><td><B>X 25 per cy</B></td>
    <td><B>$500</B></td><td><B>1.5 cy/ P.H</B></td><td><B>13.33</B></td><td><B>$21.21</B></td><td><B>$282.00</B></td><td><B>$782.00</B></td><td><B>1.39</B></td><td><B>$1,086.98</B></td><td><B>0.740740</B></td><td><B>$384.44</B></td><td><B>$1,467.42</B></td><td><B>$73.37</B></td> <tr>
    <td><B>Edging</B></td><td><B>125 LF</B></td><td><B>-0-</B></td>
    <td><B>$-0-</B></td><td><B>200 LF</B></td><td><B>0.625</B></td><td><B>$21.21</B></td><td><B>$13.26</B></td><td><B>$-0-</B></td><td><B>-0-</B></td><td><B>$13.26</B></td><td><B>0.740740</B></td><td><B>$4.64</B></td><td><B>$17.90</B></td><td><B>$0.14</B></td><tr>
    <tr>
    <td> </td><td></td><td></td><td> </td><td></td><td></td><td> </td><td></td><td></td><td> </td><td></td><td></td>
    <td><B>Total Bid</B></td><td><B>$1,485.00</B></td><td></td><tr></table>
    <b>Good Luck and Good Bidding</b>

    [Edited by Clinton D. Wagner on 03-23-2001 at 12:46 AM]
     
  8. skyphoto

    skyphoto LawnSite Member
    Posts: 221

    Golly,

    Can you solve world hunger with that system Clinton!!!

    But being serious that was a great chart....I was just gonna say $25.00/man hr + material which I would ad 10% and figure it on the 28 man hr to cover any hidden cost but I see that I need to go back to my cave!

    Anyway that really was fun to figure out!!!

    Peace!
     
  9. Clinton D. Wagner

    Clinton D. Wagner LawnSite Member
    Posts: 45

    <b>Skyphoto,</b>
    <b>You Ask if this system could solve world hunger!!!</b>
    <b>That's Ok!......LOL.</b>
    <b>My Answer, is No, Boy, I wish I could; But I can't,About the only thing that I can hope for out of this post and some of the others that I have done is hope that I can show the world that there is more to bidding than just useing a hourly rate and adding the cost of materials and then a profit to the end of it for their bid,and hope that it is right.</b>
    <b>This may work ok for maintenance contracting because it is "after fact" meaning that the "Project, home, office bldging, etc. has already been landscaped....and your customer is just wanting to add some things,But if it was a new project, home, etc. this type of bidding would not work to well...."maybe I should'nt say that" Because I'm in California" We got to count every little penny in our bidding and know that every item is going to have the right labor rate, the right hours to install it, and then you got to know that your overhead is cover for doing that job, and then you got to decide just how much profit you can put on your bid and still get the job. I don't care if you are bidding on homes or apartments, schools or what,you better have your bidding down to a "science" if you want to play in the game out here....good example, just the other day I was talking with a Gen. Contractor about geting Landscape and other bids...he said it is wild, it's nothing to get 50 to 100 landscape bids for a tract of homes or for an set of apartments and he also does custom homes and he "LOL" and said that he had just got one done and he knows he had to have at lease 75 landscapers come by and wanting to know when it was going to be done and if he could give them the new home owners name and phone number, then he "LOL" again and said, boy, Sure hate to be a new home owner looking for a landscape bid.</b>

    <b>Now if you think thats bad...just think about this...Maintenance Contractors are about three</b>
    <b>to one for every Landscape Contractor out here looking for Work.</b>

    <b>But you know; the ones that are taking their time to breakdown there bids are the ones</b>
    <b>that are geting the jobs and the extra work that comes along....</b>

    <b>In By Biz I've seen them Come and Go, just because they did'nt realize that there was more to</b>
    <b>bidding than just finding the cost of materials and useing a mark-up percentage on it</b>
    <b>and saying that would cover there over head and labor and net profit, if they got the job...LOL...</b>
    <b>"Right, if they got the job"!, maybe it would, and maybe it would'nt.</b>

    <b>Then I've seen the ones that use hourly rates to cover there Labor and overhead based on how</b>
    <b>many hours it was going to take them to do the "task" job, if they got it.</b>

    <b>Then theres the ones that like to bid by the SF or by the item..."HEHe"</b>

    <b>Then theres the ones that break everything down,</b>

    <b>They know they got to make it in! 24/7 - 365 days a year, thats all there is and no more, with that</b>
    <b>they got to cover the overhead and make a profit. Overhead for most, is a yearly thing and recovered</b>
    <b>on yearly income, not hourly ..they don't care if they do it in one hour or it takes 2,030 hours a year,</b>
    <b>they just know what they got to make per year to stay in business. </b>

    <Let's say a Company knows what their overhead should cost them for the year and they come up with</b>
    <b>$126,000.00 for the year...now what do they got to turn in income to have that amount to be 18% of</b>
    <b>the gross income....if you say $700.000.00, OK, but you better not markup your materials 18% in</b>
    <b>order to get that $126,000.00 nor your labor at 45% on the materials to get your labor covered because,</b>
    <b>it will not let you make the net that you are thinking that you want to make, lets say you want 13% to use</b>
    <b>as a markup so you can make 13% on your income....</b>

    <b>Example:</b>
    <b>Let's say a company bids by markup percentages on cost of materials....</b>
    <b>Cost of materials $350,000.00</b>
    <b>labor they bid @ 50% mark up = $175,000.00</b>
    <b>for their overhead @ 18%= $94,500.00</b>
    <b>for net they want 13% = $80,535.00</b>
    <b>>Total bid would be $700,035.00 round off ($700,000.00)</b>

    <b>Now they have got there income for the year</b>
    <b>And it's time to see how they did from there income</b>
    <b>income.............. $700,000.00....... 100%</b>
    <b>- material cost..... $350,000.00..........50%</b>
    <b>Bal's ...............$350,000.00........100%</b>
    <b>- labor..............$175,000.00..........50% of Bal's</b>
    <b>New Bal's.............$175,000.00........100%</b>
    <b>overhead..............$126,000.00..........72% of that Bal's</b>
    <b>bal's/net.............$49,.000.00..........07% of his total income not, 13% used as a markup for his NET</b>
    <b>This type of bidding just cost that owner $31,535.00 dollars...</b>

    <b>hope this Helps....</b>

    <b>Good Luck and Good Bidding</b>

    <B>This is not intended to replace any personal skills</B>
    <B>or information you may be using now. It is only </B>
    <B>intended to help you with your judgement in your bidding.</B>
     
  10. awm

    awm LawnSite Gold Member
    Posts: 3,354

    Man you and grassmaster in a league by yo self
    for long post.:)
     

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