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All the bids are in.....and for the results>>>>

Discussion in 'Lawn Mowing' started by KirbysLawn, Jul 24, 2000.

  1. Lazer

    Lazer LawnSite Bronze Member
    Messages: 1,446

    The bid specifications changed during the bidding, skewing the numbers.<p>Time for a new property and consistant bid specifications. Let's throw in an aeration, mulch, pruning and maybe sprinkler service, too.
     
  2. jeffyr

    jeffyr LawnSite Senior Member
    Messages: 876

    What do you guys that figure out the season, and divide by 12 for a consistant monthly bill do when the customer need additional service. Could be anything from an unplanned fungicide application or mulch where they didn't want it ? If you charge additional money, do you then divide that up by the number of months left in the year ? or does this never happen. and if it does, are you not doing the same thing that all of the pay by the cut (or service) visit are doing ?
     
  3. Parrot

    Parrot LawnSite Member
    Messages: 20

    Kirby,<br>This bid comparison is nowhere near accurate. You specified 34 cuts per year, but yet when somebody bid by the cut, you multiplied it by 4 per month for 12 months, thats 48. Some of you are even arguing it should be 52. It makes no sense. Yes I understand dividing a years work into equal payments, but not charging for every week. I see bids of 160 and 200 per month on the spreadsheet, and i'm sure they meant 40 or 50 per cut, not 56.47 or 70.59 per cut, as the math comes out. My bid was for 1360 per year, which was 40 per cut. If I had bid 40 per cut instead of a yearly bid, the spreadsheet would say my bid<br>was 160 per month instead of the 113.33 that it says now. Next time be a little more specific in what kind of bid you want. I think everybody was in the 30-50 dollar range, but you wouldn't know it by looking at the spreadsheet. Either state the number of cuts for a yearly bid, or the number of cuts per month for a monthly bid, or just bid the damn thing by the cut. This way at least your spreadsheet will be comparable for everyone.
     
  4. OP
    OP
    KirbysLawn

    KirbysLawn Millenium Member
    Messages: 3,485

    Yea Stone, whatever.
     
  5. cutntrim

    cutntrim LawnSite Senior Member
    Messages: 474

    Wow boys, this 'aint complicated. I gave up reading all the convoluted responses after the first three or so. <br>Up here the season for us is 28 weeks (cutting) so for example we take $30/cut x 28 weeks = $840 and divide it into monthly payments. If you want 6 months that's $140/month , 7 months would be $120. Our customers pay us with post-dated checks - no exceptions. This way we bill 'em once at the start of the year and that's it. If they want fertilizing then take that total and divide it by 6 or 7 months and add it to the cutting total. Aeration? Spring & Fall Cleanups? Weeding of beds? etc... Same thing, add it all up and divide by the number of months you want to spread it out by. For a &quot;full service&quot; account it's 8 monthly payments for us (April-November). Snow plowing payments are December-March.<p>----------<br>Dave in S.Ontario<br>www.cutntrim.com
     
  6. Charles

    Charles Moderator, Friend, Angel
    Messages: 11,804

    Now I got a convoluted headache
     
  7. cutntrim

    cutntrim LawnSite Senior Member
    Messages: 474

    LOL. O.K. I ended up making it sound over-complicated too, must be a disease we all share.<p>So...multiply your per-cut price x the number of weeks in your area's season, then add the cost of additional services and divide the total into equal monthly payments.<br>There, much simpler explanation.<p>----------<br>Dave in S.Ontario<br>www.cutntrim.com
     
  8. richard2

    richard2 Banned
    Messages: 101

    richard bills year round, then in the off season all 2 months in the northwest he goes to pebble beach for 3 weeks, comes back makes rounds...gets looks because he is tan, after rounds he goes to mexico for 3 weeks, comes back makes rounds....looks even tanner...then goes to phoenix for 2 weeks...comes back makes rounds looks lean and brown...then gets power reel sharpened, applys iron and off we go...checks come in even when i'm away! if by chance seattle gets snow, i have to come back after the roads open to log up down trees (if you've never been up here you have never seen trees) runs chipper charges extra on heavy damage returns to vacation spot so as not to loose tan..washington will suck out any color from your skin in days! both billing positions have advantages..
     
  9. GroundKprs

    GroundKprs LawnSite Bronze Member
    Messages: 1,969

    Took you long enough to reply, Charles! :) Would you like a 12-month, 8-month, weekly or per-cut brand of aspirin?<p>----------<br>Jim<br>North central Indiana
     
  10. Dale

    Dale LawnSite Member
    Messages: 36

    I don't freaking believe all this crap. I should not comment, because I did not bid. But I will because this is one of the most basic problems with this business. Most people in this business have no idea of their cost of doing business, have no concept of return on investment, and sure as hell make life and business on the west coast attractive.<p>My full service maintenance bid for that property would have been at least $ 350 per month, 12 months a year with reduced service levels in Dec, Jan and Feb. Labor and equipment is 50% of your costs, with materials being 5 %, and overhead and G & A taking 30% and hopefully at least 15% net to the owner after at least a 40 - 100k salary depending on volumes. Get the labor right and you get the bid right. You all are so damn worried about getting your price down so damn low so you can get the job, so you can add it to your portfolio of low margin accounts. Why not worry about being more labor efficent, coming up with a PROFITABLE and consistent pricing process, reinvesting profits in the business for increase efficency, and other basic financial parameters of this business.<p>Set a pricing process that covers expenses, and returns a profit level above what surfing the net with equally high risk technology stocks, ( maybe above 15% clones ???). <p>Damn, you guys need to spend more time working on your business strategy's than bidding yourself in to Chapter 7.<p>
     

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