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LaneScapes

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When quoting customers, I use a "Material + Equipment" & "Labor" expenses as the two categories in calculating the final costs.

"Material + Equipment" being plants/flowers/trees/edging/tarp/gas/etc + a bit of cushion to cover unexepected expences..

Is it pretty standard to collect the "Material + Equipment" expense before beginning work? As in basically collecting a deposit to purchase the plants/flowers/equipment needed in the landscaping installation...

Reason I ask is that the initial "Material + Equipment" cost could be a pretty large sum, and could turn them off just by the large number that is expected before work is done..

Thanks in advance for the input,
LS
 
projects over 10k with standard materials the terms are 50% the day I show up , 25% at the half way point and 25% the day Im done
Projects under 10k but greater than 3k 50% the day I show up 50% the day I am done
Projects Under 3k 100% due the day Im done and I tell the customers that I dont want to have to ask for the checks.
Typicaly they give them to me earlier than I would have had to ask.
 
E-equpment
L-labor
M-material
O-overhead
S-sub contractor
C-contingency
P-profit

This way you bid for profit...

Lets say you use shovels and wheel barows... your E will be 10% purchase cost to a few of your hand tools. Give your slef a few dollars to replace things that don't last forever. Also, include rentals here.

Labor... how much will you owe in labor and labor insurance and taxes for people that help you? Don't include your self here.

Materials... Include delivery, taxes, and cost for materials. Charge what is necessary for a mark up to pick it up and shop for it.

Overhead... Fuel, insurance, veichiles, owned equipment, your pay, etc. You won't last in business if you don't know this.

Sub contractor... I usually add 15% to what I'm charged

Contengency.. Usually I add 5-15% to my bid for OOPS we broke something or ordered too much materials. I refund some of this if the job goes well.

Profit... 20-30% is what I use in my bids.
 
I ask clients for 50-70% upfront on large jobs. Small jobs are payment on completion, some jobs are inlcuded in monthly maintenance contracts.

I have also asked for nothing down, but several payments upon completion of each item on very large jobs.

Every job over $1,000 per year is under contract.
 
I always get a 50% down payment on a project and the other 50% due either upon completion of the project or the end of the month.
 
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