Chem Lawn

Discussion in 'Business Operations' started by jsr2741, Oct 15, 2003.

  1. jsr2741

    jsr2741 LawnSite Senior Member
    Messages: 392

    I'm preparing a bid at a local car dealership. He has two lots, one is over 86,000 sq. feet (mow-able grass) and the other is over 94,000 sq. feet.

    Chem lawn has had this account for several years and I was fortunate enough to get copies of their last years bid. The thing that throws me is how they charge the same amount for each application of fertilizer/chemical application. I figured that they only fertilize the display side of the properties; one being over 34k and the other over 26k.

    Here's what the bids were for;

    $135 for each application (6 step) at both properties, which figures at $43 for 5k and $3 for each additional 1k,

    $600 for aeration for each,

    $185 for grub control for each,

    and $108 and $135 for mowing.

    My question is, how do they come up with a flat rate for each fertilizer application. I do not pay the same for my chemicals and fertilizer at each step throughout the season; i.e., fertilizer w/ Barricade is considerably higher than 8-4-24.

    I would presume because of the volume they do they can charge this rate but it's really got me in a quandary.

    Just thinking out loud.
  2. Rustic Goat

    Rustic Goat LawnSite Bronze Member
    Messages: 1,194

    Besides their size, isn't their pricing because it's all liquid?
    What about figuring up all the applications you'll be doing, then just divide those by the total quantity of applications to get an average price, and use that as your per app price. Would that work?
  3. GeorgiaGrassMan

    GeorgiaGrassMan LawnSite Member
    Messages: 147

    I'm having trouble following your math here. I can't seem to make the answer come out to $135. Could you expand on that a little?
  4. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Messages: 8,745

    same with me, the math is throwing me off
  5. jsr2741

    jsr2741 LawnSite Senior Member
    Messages: 392

    GGM, Tideman, my mistake, I figured only the 34k property and that figures at $48 for the first 5k then $3 per 1k after (based on what they send out every year in their flyers). Thats why I'm stumped as how they can charge the same for both properties, the other business display area is about 8k less sq. footage.

    As for them using liquid, I patrol the area this business is in and I've always seen them on a ride on spreader spreading granular. Even if it was liquid, wouldn't one property be less since there's less area to cover.

    Rustic Goat, yep, I've though about doing it that way. It sure looks better on paper than it does with one app being $110 and another being $400 and so on.

    As far as it affecting what I'm going to bid, it doesn't but like I said I was just thinking out loud.
  6. Evan528

    Evan528 LawnSite Silver Member
    Messages: 2,144

    I charge the same for all of my applocation also. The catch is this though......If I put down an application of Dimension with a fertilizer in it I charge for 2 applications. I think it keeps everything easier for the customer.
  7. hortboy

    hortboy LawnSite Member
    Messages: 170

    As an old chem-lawn employee, They have a basic price per application for there customers. does not matter how many applications or products is used. As I had to tell my customers- they weren't paying for the product but paying by the square foot. Also chem-lawn will do what is needed for the lawn. example, if weeds have taken over a lawn they will do up to 5 weed controls a year to gain control of your more difficult to control weeds. But if your a long time customer you may get weed controls and dry fertilizer w/ spot treatment for weeds. Chem-lawn also does surface insect control at no-charge if or when there is a problem.

    It is my experience I follow there idea, figure your cost per thousand sq ft labor and then add up your product cost for all applications and divide by number of visits. It will be much easier in the long run.
  8. kootoomootoo

    kootoomootoo LawnSite Platinum Member
    Messages: 4,369


    Commercial sales rep determines the price. Sales are everything!
    Sell Sell Sell
  9. jsr2741

    jsr2741 LawnSite Senior Member
    Messages: 392

    Thanks for the input.
  10. ZX12R

    ZX12R LawnSite Senior Member
    Messages: 795

    Damn!......I wouldn't touch those properties for those prices.

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