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FourSeasons
11-25-2007, 03:51 PM
I am submitting m bid on my first landscape install for a developer tomorrow.

When I give him the proposal do I just give him one total proce without seperating the materials from labor.

Or do I need to show the cost of materials and labor seperate with a total.

It doesn't matter to me either way. I just want to know what the proprer way to do it is.
Thanks

StartALawnCareBusiness
11-25-2007, 05:33 PM
Hi Rob:

Great question.

Personally, I do not separate materials and labor. This just gives your customers more bargaining power if they try to negotiate the price downward.

The only separating I do is if the quote is for several substantial sections of work. I might then give a separate price on each section. That way, if the customer needs to shave some money off the total, he can pick and choose. Still though, I don't break apart labor and materials on the quote.

Hope this helps:

Keith

FourSeasons
11-25-2007, 11:43 PM
So say the developer accepts the bid.
My bid is going to be for about $5000.
$2000 labor - $3000 materials roughly
What is the standard when dealing with this much money and a developer.

Do I request half now and half upon completion?
Or just payment in full when the install is completed?
Should this be included in the proposal? I would guess it would be.
Thats alot of money to put out there.

StartALawnCareBusiness
11-26-2007, 12:30 AM
Hey Rob. *Team Gopher emailed me and told me you had responded. *Glad I caught it before bed.

This is more complicated. *Normally, this decision is handled by the company requesting the bid if it's formal. *If it's informal then this is part of the negotiation. *Call the purchasing manager (accounts payable) and ask what their norm is. *

How well do you trust this company? *Do you know the owners? *Have you done a credit check or asked for (and checked) credit references?

$3K is a huge outlay on your part. *What if you install the project and then the company files for bk. the next day? *That's a worst case scenario but those things do happen.

If this was a company I doubted at all, I would try for 100% payment up front. *You probably won't get it but you have started the negotiation high. *Tell them materials are 60% of the project and you can't float that amount without prepayment. *You can negotiate downward some if needed.

What if they still refuse? *You have other options. *Try for surety bond or an escrow service. *Fees are their responsibility.

If you trust them and you feel they are a good credit risk based on your research, a common payment method is 2%10/net30. *This means that if they pay-in-full within 10 days, you will give them a 2% discount (or 1% or whatever you feel). *1% of 5 grand is $50. *The discount rate is to make them want to pay quicker. *Otherwise, they have 30 days to pay.

These are just a few suggestions but there are lots of other options.

Good luck. *Let us know how it goes:

Keith
PS: Something else I just thought of. If you get the job, don't take it on a handshake or on a verbal okay. Get a signed purchase order from the company with all details outlined.