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Discussion in 'Business Operations' started by PROCUT1, Feb 22, 2011.
Thanks for the post, ProCut!
As one of these "newbies", I thank you. I've spent hours on the internet and hours talking to various people in the industry trying to find good advice on how to bid jobs and all I find is programs that cost over $100, and most other info is insufficient. Thanks a million. Now, time to apply it.
wow, im happy im reading this at 19 and BEFORE i bid my first account. i would always ignore people when they told me to figure out hourly rate, profit, employee, expeneses etc. but now i get it...
very well said!
VERY WELL SAID!!! Now I wonder how many will do a search before they ask the question.
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Well put. That is where the rubber meets the road. Sometimes I wonder if it is a generational attitude. People freak out when there is not "an app for that", and the answer is not handed to them, and can't be googled.
36 replies in a year and half of them being me.......not many....
It requires less effort to just ask for a number and hand it in.
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Awesome post procut. Unfortunately It took me a long time to figure this out as well. The only thing I didnt like was the 8% profit margin. If we can't make at least a 30% profit of the gross total we do not touch it. Sometimes I wonder if we are not all better off to stay away from mowing.
I will add for anyone who has read some of my other threads. It took me a long time in business before I operated this way.
I used "the going rate" for years both residential and commercial.
It was many years into it that I applied this to my own business and to the customers that I already had. Thats when I realized how little I was making.
Learning how to do this was the precursor to my "How to fail" thread.
We took a couple of months and did a complete evaluation of the business from top to bottom. Including following the crews on their routes with a stop watch so we knew exactly how long each property took.
It was shocking to see accounts that I thought for sure were making us money, in reality they were costing money to do. And the opposite was true. Some of them little $25 jobs were throwing off 80% profit. While the $40,000 a year account was at 1.5% and thats only if it was done just as fast every week with no wasted time, and no breakdowns.
If I had done this from the start, i would have had a totally different operation