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How do you guys bid properties?

Discussion in 'Lawn Mowing' started by BryPaulD, Mar 30, 2005.

  1. BryPaulD

    BryPaulD LawnSite Senior Member
    from MI
    Messages: 392

    For mowing, blowing, trimming. Spring clean-ups? Do you bid by approximate hours, square footage of the props.? Thank you
     
  2. twins_lawn_care

    twins_lawn_care LawnSite Senior Member
    Messages: 932

    1) Figure out what it costs you to operate as a company per hour
    (total costs for the year / hours worked)
    2) estimate the time it will take to do a certain job
    3) multiply costs per hour * hours to do the job
    4) add #3 with any materials you need to buy + markup + labor
    5) add profit for the company on top of #4

    6) this is your bid


    it may sound a bit overdone, but knowing your numbers is important. without knowing them, you could actually be losing money on doing work, which is pointless in growing a business. You can find a lot of information on this site, but you have to know how much it costs you to operate to make sure you make a profit, regardless of what anyone else would charge for the same job


    example...

    costs for the year
    insurance, licenses, truck payments, equipment, gas, phone,
    total: $2300
    hours worked per year: 250
    cost per hour: $9.20
    time to do job: 3 hours
    cost of job: 3*$9.20 = $27.60 + $50 materials + $5 markup on materials + 3*$12.00 per hour labor = $118.60

    then add in company profit = 10%
    bid = $130.46

    this is a gross basic example, but you have to know what your costs are to come up with any number is the point.

    simply saying, I can mow that yard in an hour, and bidding $20 because $20 an hour is good money, will leave your business going out of business.

    hope this helps some. best advice, read read read Lawnsite!
     
  3. Eho

    Eho LawnSite Member
    Messages: 205

    Spring cleanups I charge by an hourly rate which I inform the custmoer before hand. I just eyeball for mow, edge, weedeated, blow. My prices usually end up as this:
    45 minutes or below: $25
    45 min to an hour : $30
    1 hr to 1hr 15 minutes: $35
    1hr 20 min $40
    Dont really have any different size lawns down here but usually I ve gotten to the point to easily determine how long a lawn will take.
    EHO
     

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