Pricing Question

Discussion in 'Lawn Mowing' started by Chuck JR, Feb 14, 2007.

  1. Chuck JR

    Chuck JR LawnSite Member
    Messages: 3

    New to form & need help
    I provide services to the mortgage field service industry, vacant homes securing & maint. Including mowing. HUD issues guidelines & pricing we must go by. We have been trying to get these increased and require your help. We hire out services like roofing, mowing , etc. But at their pricing I can not get any commercial mowers to provide the services. We even pay out what we can charge, so I float the money for 60 days, my office does all the required paper work and load up all the photos at 0 profits. HUD specs, mow lawns every 2 weeks only, mow to 2", edge & trim, clean all walks & drive, remove clippings. Price $40 up to 10,000sf. and they require b4 & after photos too.

    So what should the real costs for their required services be? by the why I am the CEO of an association for our industry, so I do have direct contact with HUD and the person writting these specs. These services are performed nationwide and about 1/3 of us want to hire out this part to a sub. My company covers the state of OH, parts of KY, IN, MI. & PA.

    Hope all of you can help,
  2. ffemt1271

    ffemt1271 LawnSite Bronze Member
    Messages: 1,285

    i have hud contracts here but they pay more per yard than you are making, and they do not require before and after photos.

    i would think in the $60-70 range for what you are doing though
  3. Chuck JR

    Chuck JR LawnSite Member
    Messages: 3

    We provide services to these properties prior to them being transferred into HUD's inventory. The properties are still in the lender's control, but HUD has a Mortgagee Letter which has all their requirements and pricing levels. It a little known industry, but huge. We don't advertise in local stuff because most like myself are to busy to provide services to the general public / commercial. So advertise only in areas of our industry. HUD is very large, they also control allot of occupied housing too, like sec8 & commercial facilities.
  4. gqnine44

    gqnine44 LawnSite Senior Member
    Messages: 501

    I agree the price is too low especially if the lawns have grown out of control. A 10k lawn in good shape may be around $45-50, however, if the lawn is out of control $125 might be more appropriate for the first time, $75 for the second, and then $50 from then on. The most unrealstic thing in the requirments, however, is the height the grass should be mowed. These are lawns that are probably a foot hight - not bentgrass putting greens! Three inches is about as short as you can go. Maybe 2.5" if the lawn is well maintained.
  5. Chuck JR

    Chuck JR LawnSite Member
    Messages: 3

    I would agree, but HUD is specificing 2". I think because they only want to pay for a mow every 2 weeks. It gets to be a challange sometimes because in 2 wks it may be up to 6-8". And they want the clipping removed too. I have been trying to get these and other specs changed for years. It's like trimming the hedges, only 1 time per year. Most of the time that just doesn't work and you have to fight the hedges to get into these houses. It's the Government. As for your $125 price, sound good to me, but they fight us all on it. BTW - Most of us do the conventional loans too, they don't fight over the going rate for services. Just the Gov., they don't want to pay us, but sure tax me to death.

    I want to thank all of you for your input. They just issued their new specs & pricing and that is why I'm surching for the going rates. We just got a price decrease from their 2002 pricing.

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