Was my bid to high or was I LOWBALLED!!!!

[winkie61]

:Hi out there, I'm starting to get more calls in for bids to do jobs because of referrals from other customers who appreciate my work. I also have my website finally up and running. www.vclawnservice.com stop by and check it out. I will definitely appreciate some feedback. However, I did a bid for a potential client and here is a description of services along with the bid amount. Lawn size is 12,917 sq ft. Initial service charge was 150.00 a little leaves but alot of edge work. 35 Shrubs to be trimmed at 5.00 per= 175.00, 8 Crepe Myrtles to be pruned at 30.00= 240.00 one of the Myrtles she wanted trimmed just below her fascia board on the side of the house and not trimmed all the way down like the other 7. She also wanted 2 shrubs removed 25.00=50.00,She wanted pine bark nuggets for a 1022 sq ft mulch bed which would require 86 bags @ 3.00per bag= 86x3=258 + 8% sales tax= 278.64 x 2 (my charge for the install) = 557.28 rounded it to 560.00, My Dump fee was 50.00 for a total of 1,225.00 She said that she had other estimates and that I was much higher. However, I'm here in Fay, NC where this is the home of the 82nd Airborne Division and the area was not effected by the economy as the rest of the US. (Keep in mind the actual price for the mulch would have been 2.00per bag= 86x2=172.00+8% sales tax=185.76 x 2= 371.52 round up to 375.00) Should I have used the 2.00 format for the Mulch or use the current 3.00 formula which I charged an additional 1.00 per bag. I would love to hear some opinions out there on my prices per service. I know we have lowballers out here but I want to make a living and not become someone's yard boy. Please I would love to hear some opinions.

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Last edited by winkie61; 03-09-2011 at 08:36 AM.

[jymie]

Lawn care business tips

Originally Posted by winkie61 :Hi out there, I'm starting to get more calls in for bids to do jobs because of referrals from other customers who appreciate my work. I also have my website finally up and running. www.vclawnservice.com stop by and check it out. I will definitely appreciate some feedback. However, I did a bid for a potential client and here is a description of services along with the bid amount. Lawn size is 12,917 sq ft. Initial service charge was 150.00 a little leaves but alot of edge work. 35 Shrubs to be trimmed at 5.00 per= 175.00, 8 Crepe Myrtles to be pruned at 30.00= 240.00 one of the Myrtles she wanted trimmed just below her fascia board on the side of the house and not trimmed all the way down like the other 7. She also wanted 2 shrubs removed 25.00=50.00,She wanted pine bark nuggets for a 1022 sq ft mulch bed which would require 86 bags @ 3.00per bag= 86x3=258 + 8% sales tax= 278.64 x 2 (my charge for the install) = 557.28 rounded it to 560.00, My Dump fee was 50.00 for a total of 1,225.00 She said that she had other estimates and that I was much higher. However, I'm here in Fay, NC where this is the home of the 82nd Airborne Division and the area was not effected by the economy as the rest of the US. (Keep in mind the actual price for the mulch would have been 2.00per bag= 86x2=172.00+8% sales tax=185.76 x 2= 371.52 round up to 375.00) Should I have used the 2.00 format for the Mulch or use the current 3.00 formula which I charged an additional 1.00 per bag. I would love to hear some opinions out there on my prices per service. I know we have lowballers out here but I want to make a living and not become someone's yard boy. Please I would love to hear some opinions. I have found that most people will say "your bid is much higher" in an attempt to get the lowest possible price out of you. You mentioned that you doubled the mulch cost to cover your install, I would say then that adding the extra dollar per bag would then be unnecesary. Can you post a picture from an overhead shot of the site? Bing maps is a good tool also.

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. http://www.lunchesruslawncare.com

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Last edited by jymie; 03-09-2011 at 08:58 AM.

[Fisher]

I might would have offered a small percentage off the whole bid and just said that was the best I could do. I would keep the $1 mark up on the mulch (especially if your price is lower than if she'd have went and paid for it herself) as it would cost you near that to have it delivered. Time picking up and loading materials I believe should be figured into a bid somewhere.

[fieroboi]

Originally Posted by winkie61

::I know we have lowballers out here but I want to make a living and not become someone's yard boy. Please I would love to hear some opinions.

I think you may have answered your question with your last comment about "just being someone's yard boy". If a lower price would make you feel like being someone's yard boy, then your price is right on. I've had clients say the same thing about being high and have learned that usually they don't end up being happy with the level of service they recieved from the lower bid.

What you need to keep in mind is that it takes money, good equipment, knowledge, experience and pride in workmanship to do a job right. Knowledge, experience and pride in workmanship are assets you can market and every customer will have different value on them. Feel confident with your bid, you'll end up winning more than you lose in the long run.

Lloyd
Blue's YardFX
Camrose, Alberta

[Steve]

Should I have used the 2.00 format for the Mulch or use the current 3.00 formula which I charged an additional 1.00 per bag. I would love to hear some opinions out there on my prices per service. I know we have lowballers out here but I want to make a living and not become someone's yard boy. Please I would love to hear some opinions.

How long did you figure it would take you to install the mulch?

Also is there a way for you to get this mulch in bulk, at a bulk rate price and not bagged?

[winkie61]

Steve, I cannot get the pine bark mulch in bulk only in bags for this area.
Pine bark mulch is not that much in demand for this area. I just wanted to know if my prices per service was in the neighborhood for the landscape market or was I to high for the market?

[winkie61]

Originally Posted by winkie61

Steve, I cannot get the pine bark mulch in bulk only in bags for this area.
Pine bark mulch is not that much in demand for this area. I just wanted to know if my prices per service was in the neighborhood for the landscape market or was I to high for the market?

also it would have taken us between 1 1/2hrs - 2hrs to install the mulch

[Liberty Landscaping LLC]

I personally buy it all in bulk. I have an ez-dumper so it saves delivery. If you buy in bulk or alot they normally deliver for free. I would have tried to sell her on another style mulch. I am not sure about your area for pricing. I normally break down the products and labor for big jobs. I have an hourly wage worked out for myself and whoever I will hire and guesstimate time. I normally round up. In the end if it was less time I say listen I was able to cut you a break here and they love me for being honest and up front. Try it out I esp do that with exsisting customers. If it isn't and existing customer I will cut them a break but not as big knowing it's a one time deal. Then hand them a few cards and flyers and say if you were happy pass them around to friends and family. It has given me a few more customers and it was only 20-50 dollars I cut them and it made out in the end. I know people in the business so I ask them what they charge. It makes it easier because then there isn't a lot of undercutting going on. Good luck.

[Liberty Landscaping LLC]

I fogot if you are insured. Tell them I am fully insured and insurance is expensive but it protects you as well as me. I am honest with everyone. Call her up and say is there any questions you have on the bill or do you need anything explained about how we will perform the work. I might be a little more expensive in some areas but I am up front honest and personable with clients. I shake hands, smile, dress nice, and give out my card. I have gotten accounts over others for that reason and they say you were a little more but that's what sold us was your attitude and explinations. Just what works for me...

[Steve]

She wanted pine bark nuggets for a 1022 sq ft mulch bed which would require 86 bags @ 3.00per bag= 86x3=258 + 8% sales tax= 278.64 x 2 (my charge for the install) = 557.28 rounded it to 560.00,
(Keep in mind the actual price for the mulch would have been 2.00per bag= 86x2=172.00+8% sales tax=185.76 x 2= 371.52 round up to 375.00) Should I have used the 2.00 format for the Mulch or use the current 3.00 formula which I charged an additional 1.00 per bag.
also it would have taken us between 1 1/2hrs - 2hrs to install the mulch

Ok lets break this down.

Say 2 man hours to install this total?

Your cost for the mulch is $375.

You are charging the customer $560 for mulch and install.

($560 - $375) / (2 man hours) = $92.50 per man hour for this mulch job install.

Is $92.50 the hourly fee you are shooting for on all your services? Does this seem high, just right, or low to you?

How does this price compare to the amount you are charging per hour for lawn care or other services?