help Pricing large Job

Discussion in 'Business Operations' started by gtstang8706, Feb 13, 2011.

  1. gtstang8706

    gtstang8706 LawnSite Member
    from Mass
    Messages: 8

    Hi, so heres my story. Ive been mowing lawns for several years and have a great opportunity to bid on a large HOA. I need to give a flat price for the season. The seeded area is about 8 Acres of thick green, perfect grass. They dont want it bagged either. Its a 3 year contract, and I need to give a bid for all 3 years seperately. im guessing I should slightly increase the bid each year, as im sure costs will rise. Any help would be much appreciated! Thanks!
  2. gtstang8706

    gtstang8706 LawnSite Member
    from Mass
    Messages: 8

    Anyone? please!
  3. castle555

    castle555 LawnSite Member
    Messages: 127

    One sure way to fairly price increase is to use the CPI or Consumer Price Index i went up a combined 4.3% in the last two years.

    It sounds like they are into "grasscycling" which is great for the renewable resource that grass clippings become as 4% free nitrogen per year.
    You are lucky about that for commercial. Be careful, many HOA's are cheap, cheap, cheap. Need to have lots of volume to make profit in those places.

    I joined PLANET, the Professional Landcare Network and they have a publication by a firm that has fairly real-world examples for times to cut, production rates-etc. It is worth it, and it is down-loadable.
    Another resource for you would be the ALMA American Landscape Maintenance Assoc. site (Tommy Gantz). He also publishes a similar document with production rates, along with a lot of other great information and the cost for joining his site is way less than becoming a PLANET member however, I believe their studies and examples are abetter numbers there are some differences between the two.

    You also should consider what your hourly rate is set at? 45.00 or 55.00 or 65.00 per hour? What does it cost you to operate?

    I basically figured out my own % formulas by the square foot (for a 21" mower though) then I measure the site off Google Earth to verify dimensions, if I don't actually visit the site. -it's close enough to my real measurements -just keep the cursor close to the object.

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