Your thoughts on a commercial bid?

Discussion in 'Bidding, Estimating and Pricing' started by Pugi, Feb 1, 2019.

  1. Pugi

    Pugi LawnSite Member
    Messages: 8

    New to the commercial game. Potential customer wants a flat rate bid for mowing trimming, spraying, fertilizing and keeping all decorative bushes and grasses trimmed. In total the property is 2 acres. I was told the former company who was fired was paid $165 a week for lawn mow and edge trim and everything else was a upcharge. Customer wants a flat rate for everything. Prices here tend to be closer to the low end of the scale. There are shrubs along every outside wall and grasses in the drainage areas. What your thoughts on a flat rate to include everything?

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  2. That Guy Gary

    That Guy Gary LawnSite Silver Member
    Messages: 2,379

    Figure out how much you would charge for those services if they were extras, how much you'd charge for each cut, basically put all your numbers together like you would if you were just bidding them separately.

    Decide the number of times each year you'll perform them.

    Calculate what the total cost will be and then divide by 12.

    Make sure you have a good contract with the upfront cost of every service spelled out. Make sure there is a clause in the contract that essentially states that they are being offered credit for services performed at a 0% rate and if they cancel mid contract and all services that have been performed have not been paid in full there will be a balance due.
     
    tdoeizreal likes this.
  3. Steve

    Steve LawnSite Bronze Member
    Male, from NE FL
    Messages: 1,581

    You do this for residential too?
     
  4. That Guy Gary

    That Guy Gary LawnSite Silver Member
    Messages: 2,379

    We don't do installments for residential, we invoice monthly though and don't require prepay.

    We offer annual prepay with a 10% discount preseason for residential, other than that it's bill as we go, invoiced EOTM.

    We are full service though, by the time I was hired our residential clients were well cultivated. People that spend 5-6 figures a year just on landscaping services.

    Not all of them, but most. I can't think of any that didn't at least get lawn apps in addition to weekly mowing, and all the lower revenue clients are convenient and easy to work for.

    Installments aren't common here for residential though.

    If I ever did installment for residential my first inclination would be to send an itemized invoice every month. Similar to your CC statements except nothing with an outstanding balance would be removed from month to month.

    I think this would cover my butt sufficiently if anyone ever tried to pinch me for enough to make it worth taking it to court.

    Corporate bean counters though, they love installment contracts. Even for them though not everything is under the umbrella. With irrigation for example, basic maintenance is covered like system checks and seasonal adjustments, but repairs aren't.
     
    Steve likes this.
  5. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 14,892

    Why was the last guy fired?
     
  6. Pugi

    Pugi LawnSite Member
    Messages: 8

    According to the manager, when he was asked to do anything other than basic mowing and trimming the guy never had time. The property really does look sad.
     
  7. brichter14

    brichter14 LawnSite Senior Member
    Messages: 989

    Like stated above take everything you will do that is extra like spraying and fert and mulch etc. you will mow about 4.5 times a month so for our accounts that is April-October or 7 months. Add it all up and divide by 7 and round up to the nearest sweet number. ;)
     
    hort101 likes this.
  8. Pugi

    Pugi LawnSite Member
    Messages: 8

    That’s more or less what I did last night. Thanx for the inputs everyone!!!
     
    hort101 likes this.
  9. Pugi

    Pugi LawnSite Member
    Messages: 8

    Bid was submitted. Was told I would have a answer either yes or no by end of month.
     
    hort101 likes this.
  10. La Chandler

    La Chandler LawnSite Member
    Messages: 167

    Sounds like customer is price shopping. Hope your bid is detailed and high enough to make a profit. The worst case is to win and lose money.
     

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