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How to correctly bid, while still making money and being resonable?

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  • How to correctly bid, while still making money and being resonable?

    Hello,
    I am a new business owner for a Hardscaping/Landscaping business in Eastern Pa. The trouble I am finding is how to bid on jobs while still being reasonable to the customer and making a profit.

    I had tried to look on YouTube videos but didn't understand how to actually bid on them. What are reasonable prices for design and other landscaping services. Any advice or links to places are greatly appreciated.

    Thanks

  • #2
    Re: How to correctly bid, while still making money and being resonable?

    I’m curious with some tips and tricks from experts here as well. Bumping for you

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    • #3
      Re: How to correctly bid, while still making money and being resonable?

      Well, it certainly depends on the area, but you should sit down and calculate reasonable operating costs per hour and find a figure you'd charge a customer for a reasonable profit and set that as your bottom.

      Maybe check out forums such as craigslist and local services for some rates, maybe do some undercover as well.....

      It also depends on your equipment. If you have a little pushmower, you're obviously gonna charge differently that you would if you were cutting a field with a 72" bush hog like this one: http://www.skidsteerattachmentdepot....tter-bush-hog/

      You could also stress customer service, offer them free edging or something (within reason).

      Goodluck! Plenty of money to be made!

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      • #4
        Re: How to correctly bid, while still making money and being resonable?

        For hardscaping a general rule is that the total project cost should be around 2.5 times the materials cost, but you have to be careful applying that since so many factors can influence it. I've never charged for design, but most of what I do doesn't require much design.

        Estimating can certainly be tricky and it's easy to underestimate how long a job will take. I bill most of my jobs on a "time and materials" basis based on hourly rates for different labor tasks and set rates for materials delivery, mark-up and waste disposal. I do give an estimate when necessary and typically figure out how many hours I think it will reasonably take and add 20% to the labor estimate as a fudge factor, but my invoice is based on actual time & materials. However I'm working almost exclusively for existing maintenance customers that I already have the trust of and I am doing an occasional bed makeover, gravel driveway resurfacing, reclaiming an overgrown area or renovating a lawn. Nothing complicated. Admittedly, time & materials quotes for people who don't already know and trust you is a pretty hard sell and can leave you short of what you would have made if you had bid it lump-sum and the job went well.

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