How Much Should I Bid On My First Commercial Job?

Discussion in 'Lawn Mowing' started by HudsonBrosLawnCare, Feb 28, 2011.

  1. HudsonBrosLawnCare

    HudsonBrosLawnCare LawnSite Member
    Messages: 190

    My brother and I own a small landscaping business and all we have is residential lawns. We just got an offer 2 bid on the common areas of a neighbor hood. All they have are some traffic islands, the entrances of the neighborhood (I think two or three), and a strip of land by the road. Any tips for pricing it. Should I try to price it by the aproximate hours or some other way? I generally try to price my jobs where my brother & I make $50 an hour combined. Is that the rate I should keep for commercial jobs, or should it go up or down? What ever suggestions or advice you can give will be very much appreciated!
  2. JB1

    JB1 LawnSite Fanatic
    Messages: 5,903

    price it to make $$$$$$$$$$$$$$$.
  3. Golfpro21

    Golfpro21 LawnSite Senior Member
    Messages: 563

    as above...price it to make the amount of money you need or are happy making , but make sure to cover your expenses such as gas, equipment depreciation, labour, and since your dealing with a commercial account, make sure you have liability insurance.....any company up here seeking bids makes anyone submitting a bid also submit proof of insurance....if something goes wrong theu don't hesitate to sue so cover your butt
  4. Mountain Peak

    Mountain Peak LawnSite Member
    Messages: 203

    Figure your cost of doing business per hour and then add the profit you want to make each hour. That's your hourly rate. Then figure out how long it will take to mow that grass and go from there.
  5. Guzzo856

    Guzzo856 LawnSite Senior Member
    Messages: 295

    first they are gonna want to see insurense also a minimum of 1,000,000 coverage.
  6. ReddensLawnCare

    ReddensLawnCare LawnSite Bronze Member
    Messages: 1,651

    Do it by the hour. Im assuming with you having a combined hourly rate of 50, your probably not paying insurance or have your license. If you do..i apologize. If you dont...GET IT! It is vital and your going to need it in the future anyways. SO to your question...charge by the hour...i would charge atleast 40 per 80 combined...and since it is small...make this a learning experience...nobody can tell you exactly what to do..just least your smarter then a lot of guys on here who only mow two yards and want to know how to bid on a 30 acre account...start slow and small...grow from there. You might loose money on it, but you will learn. Been there..done that
  7. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Messages: 4,891


    THEGOLDPRO LawnSite Fanatic
    Messages: 5,222

    Ask to see the contract from last year so you can compair prices from the previous company that has been doing it. works about 50% of the time when i bid commercials, some people will give the info out right away in hopes that you can beat the previous guys prices.
  9. HudsonBrosLawnCare

    HudsonBrosLawnCare LawnSite Member
    Messages: 190

    Thanks for all the responses. I do have a license, but no insurance. I'm calling for quotes now, though. I found out the is a retention pond we would have to do now also. I'll let you know how it goes.

    ONEBLADE LawnSite Member
    Messages: 90

    U must first know your cost of doing business. knowing your $ per manhour is a must

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