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Discussion in 'Business Operations' started by BradLewisLawnCare, Mar 21, 2013.
so after much consideration, i bid $1750. It went for $1675 per cut!
lol and you were thinking 3k
The wages were min. $12/hr every guy. I used a HOA that we can do .75 acres per man hour on as my basis. LAbor being $15 for .75 acres finished, weed wacked and blown. So LAbor for 30 acres was $600. Then I usually hope to attain 60% operating profit. That is how I came off my $3000. The original $3k was based off converting all of my properties into a regression analysis and coming up with a straight formula. I realized that I was way off with production levels. a 10k sq ft property is not the same as a 4 acre 10 acre or 30 acre. and since 30 is very large and after reading many posts on here, I knew I'd have to really work the numbers. Of course it was exciting bidding and hearing other people. There were 5 bids and 3 were between 48-58k for the whole project and the other 2 were 78k and 100k. I was $49,992 I'd definitely give up the $2k now that I know it, but who wants to leave it on the table.... Next year.
I have a similar opportunity. 125 unit sub division, all homes are rentals. Lot sizes are postage stamps, maybe 1/4 acre, prob not that much. Mow, trim and blow. shrub trimming twice per year. plug and fert once/yr. Was thinking around $20/unit, but scared to make the leap from a solo part time to employees and full time. Did any of you old timers run into this situation? And what did you do?
At $20 a unit with legit employees you'd be lucky if you were breaking even.
All of the homes are next to each other? If so then it doable. Are there fences? How big? Do you have the equipment already. If you have to finance it, you could be screwed if you don't get the job next year. All eggs in one basket. Happy Easter
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Estimate to mow trim and blow is 10 - 12 min per lawn. Like I said, they're postage stamps.
So, you can keep up a pace of 5 an hour? I doubt it. Lets say you can, though...
That's $100 an hour you're billing
2 employees wages, workers comp, etc? $35-40 an hour.
Fuel per hour? What kind of equipment?
Equipment wear and tear, depreciation, etc? Again, what kind of equipment.
Do you have an office or out of home? Do you have someone who does the billing that you have to pay? What happens if an employee doesn't show up? etc, etc, etc
It's really hard to say if this is viable without knowing your costs.
We have properties @ 20 per mow.
The RPH comes out at $137 PMH, so it is possible.
Well, you're a pro. This other guy is not. He's new. I just don't want to see someone get burnt.