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Opportunity to buy big contract

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  • Opportunity to buy big contract

    My parents who own a contracting company doing facility maintenance for many big companies such as riteaid, cvs, blockbuster, dollar general etc... Here's the deal, They picked up a contract this past year for 300 dollar generals to do the lawn maintenance on them this year. Well keeping up with 300 stores and billing all them has just become a little much for her company because they stay busy with all their other work. Question is, how do I offer a fair price on the contract for next season? I know it is my parents but it is still business and that's how I am looking at this. Each property is paid out $50 per cut and done 2 times a month. On the 1st and 15th. That's a total of $30,000 a month in pay out. She currently charges $15 a property per cut to the company she got the contract from which comes out to $9000 a month revenue. The contract is a 9 month contract for a grand total of $351,000. Out of that is $81,000 revenue, any idea on where to make an offer on something like this? Because it is my parents I know she will let me buy the contract over the course of the contract, so from that point it will help me a lot. Any ideas or suggestions?
    2008 F-350, 2006 rzt50 23kH, 2010 tank m48 with 25kH, 16x8 vnose car hauler, echo edgers and weedeaters.

  • #2
    no idea how much to offer

    but the price seems very low on the amount of work and billing your going to have to do for 100 usd a month per job.
    and I am guessing with 300 stores your going to be subbing it out and taking a percentage of what some one else would make.

    let me guess your and your parents are a national company? with out equipment or manpower to do the work just bid low to get contracts and then sub it all out for even less?

    IF I am wrong forgive me but I see it happen all the time in the snowplowing industry and its begging to affect the lawn care also.
    C&S Lawn Service

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    • #3
      Each property is paid out $50 per cut and done 2 times a month. On the 1st and 15th. That's a total of $30,000 a month in pay out. She currently charges $15 a property per cut to the company she got the contract from which comes out to $9000 a month revenue. The contract is a 9 month contract for a grand total of $351,000. Out of that is $81,000 revenue
      Ok let's break this down to understand what we are working with.

      $50 per cut x 2 = $100 per month per location.
      $100 x 300 locations = $30,000 per month.

      How does the $15 a month come into play? I got confused there? Is she paying per property to get the bid? Or how does that work?
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