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Contract Offer

Discussion in 'Starting a Lawn Care Business' started by mullskilove, Jan 18, 2007.

  1. mullskilove

    mullskilove LawnSite Member
    Messages: 1

    I am getting offered 25k to cut a townhome community. There is a 140 townhomes. All open no fences, do you think it is worth it. Three cuts a month.
  2. gmcplowtruck

    gmcplowtruck LawnSite Member
    Messages: 174

    how large are the yards how long will it take you to cut all how many cuts a year
  3. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Messages: 2,988

    3 cuts per month?

    What are you going to do during the fast growing season? You'll have to double cut it. There goes your profit...

    WHO is offering you this? The property manager of the Townhome Community? If so, I'm willing to bet that he's trying to get "the deal", and you'll lose your azz if you accept his price.

    You need to provide more info if you want better answers.
  4. lawnpro724

    lawnpro724 LawnSite Silver Member
    Messages: 2,201

    3 cuts might work in mid summer but you won't want to be doing that in spring.
  5. Albery's Lawn & Tractor

    Albery's Lawn & Tractor LawnSite Bronze Member
    Messages: 1,674

    Ok lets see...140 yards 3 times per month equals 420 mowings per month. If you mow 7 months out of the year thats 2940 mowings per season. So if $25,000 is for the whole season then NO!!! 25,000 diveded by 2,940 mowings means your mowing for $8.50 a yard. I would try to get $20 a yard if there all together, that would make it around $58K. They make it seem like alot by throwing out 25K but when you break it down its not that much.
  6. HiTECH

    HiTECH LawnSite Member
    Messages: 58

    i am betting that the yards are on average maybe 6-8000 sq ft of turf. most likely if a big company as brickman or a similar company came in and bid it they're going to bid between 12-15 per yard and say 28 cuts per season depending on if they are irrigated or fertilized.

    15 x 140 = 2100 per cut x 28 cuts = 58800

    12 x 140 = 1680 per cut x 28 cuts = 47040

    I know 12-15 sounds really low but if you figure that you are getting all 140 towne homes its not bad considering you will have no drive time to were you are having to pay your employees to sit in the truck and drive from job to job, and if you do get it at say 15 per yard and that is the only account you mow that day, well 2100 a day isn't bad.
  7. HiTECH

    HiTECH LawnSite Member
    Messages: 58

    i forgot to mention that you would have to be a fool to take that contract for 25,000. like the other guy said, they through 25000 out there like it was alot of money but in all reality, it isn't nearly enough
  8. CkLandscapingOrlando

    CkLandscapingOrlando LawnSite Senior Member
    Messages: 652

    I had a line on a place. 365 house. the very large company that had the bid at the time was doing It for 8.75 a cut.Thats 4 guys for 2 days.39 cuts a year.Every week for 6 months and every other week for six months.Almost 10000 a month. VOLUME not price. It sounded really low till I did the math.Needless to say, I put In the same bid as the guys they wanted out,and I got under bid...

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    What is the total turf area...I highly doubt it's just 140 townhouses with NO common areas to mow. Also what about leaves in the fall?

    $25k is a bit cheap to me. What I would do, work up a more realistic mowing schedule...weekly until some point in June, then maybe you could get away (maybe) with EOW thru the summer...then probably could get away with 10 days in the fall...but you have to be realistic and consider what is normal for your area.

    Assuming there is no common areas (which I doubt) then what would be a good price per townhouse? There's no drive time involved there so you can do them for less than if you were driving all day from point A to point B.

    Counter-offer with YOUR proposal...they may not go for it unless yours is close to theirs...probably they are not charging enough in dues or maybe have other needs this season like re-paving or something to that nature. But more likely they had somebody doing it for $25K and that person realized they couldn't make money at that rate and dropped them :laugh:

    Most of these places have a budget...it often is not realistic, but they have that budget, and they are not like a residential where you can sell them on a higher price.
  10. HOOLIE

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    I would also say, don't waste a lot of time on this...they have already shown their hand so to speak...unless you think you can do it for near their 'offer' than don't spend the next week working up a proposal :laugh: it will just go in the trash...

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