how it works

Discussion in 'Starting a Lawn Care Business' started by aference1, Jan 2, 2010.

  1. aference1

    aference1 LawnSite Member
    Messages: 42

    How do you bid a commercial job when everthing is snow coverd. Most commercial places tell me they accept bids in Feb. I have had a business for ten years doing residential and some commercial but they have always called in spring or summer, not winter
  2. Omran&Turbo

    Omran&Turbo LawnSite Member
    Messages: 65

    well, the problems with commorcial jobs IMO are few:
    A- most likely you have to cover thier snow removal too, and if you are a solo operatioon like me, you really don't want to take more than 1 big shopping center, because you can't deliver the snow part in winter.
    B- most commorcial jobs let the bid outs for thier bodies and inside connections.
    c- the big o landscape companies will out bid the small guys, sometimes only to keep the payroll going ( I am not trying here to define any one so please I don't any one to get pissed off here)
  3. SangerLawn

    SangerLawn LawnSite Senior Member
    from indiana
    Messages: 736

    Very good points but that’s not the reason bigger companies put in lower bids on commercial properties. You will find the larger your company grows the less per hour you need to operate.

    For example, if your monthly bills not including wages and fuel are $1,000 dollars to operate and you only have 10 properties a week then each property will have to be $25.00 each just to break even. This does not include a profit, this is just breaking even.

    A larger company still only has $1,000 dollars to operate but may do 100 properties per week. Now there minimum property to break even would be $2.50 per property. On average fuel and labor only goes up about $16.00 per hour per man you hire so you can still see the profit range.

    I hope I explained that well enough?

    With that being said a solo person may need $45.00 per man hour on a commercial property to turn a profit. A larger company may only need $35.00 per man hour to make a profit. If a company can stay on 1 or 2 properties all day long they cut down on drive time paying employees and can do the job much cheaper then a solo person. The drive time is the reason why most solo people can do residential cheaper then larger companies but don’t stand a chance on commercial properties.

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