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Pricing Fert App. for 1 1/2 acres

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  • Pricing Fert App. for 1 1/2 acres

    I am getting ready to put together a bid for a 5 step fert program for a property that is about 1 3/4 acres or 83,520 sqft. Here are my thoughts on pricing:

    March-Fertilizer w/pre-emergent $581
    late April/May-Fertilizer w/Broadleaf $581
    July-Fertilizer w/Grub control $1,781
    September-Fertilizer $581
    Late October-Winterizer $581
    Total 5 step application $4,105

    It is for a friend's mom's house and they are giving me a ton of other landscaping and hardscaping work also. I was thinking about a 15 to 20% discount if they go with the contract. So what is everyone's thought. I figure the calculation is about $70 per 10,000 sqft. The charge price is using granular. Any thoughts about liquid applications?
    Andy

  • #2
    I'm always see some of you guys wanting to "discount" your work if you get a signed contract, and I always ask WHY? A contract should be done regardless. You are selling your TIME and therefore it should not be discounted!!! A contract is just good business and selling time for X$$ is part of that business practice. If you are always "discounting" your time to get work, then just drop your price per hour.

    What happens if you want, say, $10,000 to do the job. If you are so ready to lop $1000 to $1500 off the top immediately, you just lost a negotiation chip. Suppose they say you can have the job for $7500 and you have determined that the lowest you will go is $8500 (15% discount). You just lost $2500 total in bargining power. If you kept the $10000 price tag going into negotiation, you could split the difference and come up with a $1250 "discount" and make $1250 more than our hypothetical bottom line offer.

    Don't be so ready to discount your services. Learn the art of negotiation and come out dollars ahead of the game. The best of both situations is where the client feels they "got a concession" and you knowing that you "got profit" and "didn't give too much away".

    To learn negotiating skills, the following taped sets may still be available:
    "Lead the Field", by Nightingale Conant; "Negotiating like the Pros: Win better deals with less stress--and make 'em stick" by John Patrick Dolan; "The Secrets of Power Negotiating" by Roger Dawson.

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    • #3
      Stephen M,

      I am not really discounting jsut to get the job. I already have the job. I was just doing a courtesy discount since it is a friend of the family and they are giviing me an $8,000 hardscaping project along with about another 7 to 8,000 worth of landscaping work.

      I normally don't discount to get jobs. I stand pretty firm on my prices...
      Andy

      Comment


      • #4
        Originally posted by Aproct
        Stephen M,

        I am not really discounting jsut to get the job...
        I normally don't discount to get jobs. I stand pretty firm on my prices...
        Good!!! Thanks for the heads up. The principals apply to everybody else reading this thread.

        Comment


        • #5
          So, now that we have discussed the discounting issue, what does everyone think about the overall price?
          Andy

          Comment


          • #6
            Originally posted by Aproct
            So, now that we have discussed the discounting issue, what does everyone think about the overall price?
            I will be moving to NJ ASAP.

            I figure less materials on the fert/grub control app that I would be making almost $3000 per hour!!!!

            For at those prices I would even be able to apply the material at the full label rate on the bag!!!

            And Steve-m I now see that you have learned the fine art of writing sarcasm for you are one funny guy!

            Comment


            • #7
              Originally posted by Aproct
              I am getting ready to put together a bid for a 5 step fert program for a property that is about 1 3/4 acres or 83,520 sqft. Here are my thoughts on pricing:

              March-Fertilizer w/pre-emergent $581
              late April/May-Fertilizer w/Broadleaf $581
              July-Fertilizer w/Grub control $1,781
              September-Fertilizer $581
              Late October-Winterizer $581
              Total 5 step application $4,105

              It is for a friend's mom's house and they are giving me a ton of other landscaping and hardscaping work also. I was thinking about a 15 to 20% discount if they go with the contract. So what is everyone's thought. I figure the calculation is about $70 per 10,000 sqft. The charge price is using granular. Any thoughts about liquid applications?
              Damn!!! And you guys think my mulch prices are high?
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              • #8
                Thats a lot in my area. I'd do it for $275.00 an app. I do some properties this size and can dry fert and broadleaf spray in about 2 - 2.5 hours. I'm ready for a nice break though after one. Figure the square footage is your cost($83.52) in materials, if your buying professional materials in bulk. Then tack on your hourly rate a little heavy and you'll be in the ballpark(for the ferts). Grub, I'd probably go around $750.00 with a guarantee. I buy dry mach 2 with the fert in it. Saves a lot of time. Hope that helps

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                • #9
                  Originally posted by lorenzo piedra
                  And Steve-m I now see that you have learned the fine art of writing sarcasm for you are one funny guy!
                  See, you couldn't resist ignoring me! The desire just bubbled up into this uncontrolable urge to SPEAK!! I'll take the back handed compliment, even if you are trying to damn me with feint praise. LOLOLOLOLOL.

                  Comment


                  • #10
                    Originally posted by Aproct
                    .....for a property that is about 1 3/4 acres or 83,520 sqft. Here are my thoughts on pricing:
                    Which is it ?......83,520 sq. ft. is more like 1.92 acres.


                    Quality Is Good ©

                    Comment


                    • #11
                      Originally posted by Aproct

                      March-Fertilizer w/pre-emergent $581
                      late April/May-Fertilizer w/Broadleaf $581
                      July-Fertilizer w/Grub control $1,781
                      September-Fertilizer $581
                      Late October-Winterizer $581
                      Total 5 step application $4,105

                      ...... I was thinking about a 15 to 20% discount.....

                      At your above prices you could give them a 40% discount and still make money !


                      Quality Is Good ©

                      Comment


                      • #12
                        Okay, so I am guessing I am high on the quote. Let me re-work the numbers then.....
                        Andy

                        Comment


                        • #13
                          Originally posted by Aproct
                          Okay, so I am guessing I am high on the quote. Let me re-work the numbers then.....
                          Cost Times Three Will give you a good margin. Times four at most. Many guys are charging Times Two. You are making a Million Dollars on your kitchen table with that pencil, but remember someone has to buy your price.

                          Comment


                          • #14
                            Ric,

                            So, let's say for arguement sake, I have a 10,000 sqft property to apply Millineum w/fert for broadleaf control. The bag of materials cost $16.50 per bag and covers 10,000 sqft set at 17 for an earthway spreader. Now if you use you calculation, your saying figure 16.50 X 2=$33, or 16.50 X 3 =$49.50. I know the time to apply is only about 20mins to 30 mins. I figure my rate per hour is $35, so 30 mins at 35/hr= 17.50+16.50=$34. That seems low? I thought the money was in the applications???

                            During my class, my instructor showed a rate table that took into effect for all the applicators for chemicals. The average for a 5 step fert program was about $70 per app. of fert and depending on your IPM maybe spot treating with a broadleaf or some other herbicide per 10,000 sqft. Now my instructor was a former Lesco sales person, who has about 20 years worth of experience and the table was calculated using an average of Northern NJ competion prices, which are higher than Southern NJ. So, for an application of Fert with either a pre or post emergent, would $49.50 or $50 per 10,000 sqft be a fair price to use as a tool for putting a contract together.

                            Of course this price would not include a price of Grub/insect control (merit) application. That was figured at $150 per app. on top of the other $70, yea $220 for one application!!!Can this be right?

                            Any guidance would help on this job and set a nice standard for all my future bidding jobs.
                            Andy

                            Comment


                            • #15
                              Originally posted by Aproct

                              Now my instructor was a former Lesco sales person, who has about 20 years worth of experience

                              Any guidance would help on this job and set a nice standard for all my future bidding jobs.
                              Now I fully understand your "problem".

                              First thing a Lesco counter clerk is someone that was a green industry business failure.

                              A former Lesco counter clerk is a green industry business failure that can't hold a real job.

                              The present "manger" of my local Lesco branch was a former assistant manager at Wal-Mart who had no green industry experienced before joining the Lesco team.

                              The former manager who opened the branch was a former grounds maintenance contractor who was actually quite knowledgeable but he was "let go" without explanation (downsized do to being paid a living wage is my guess).

                              Let's face it NO real educated experienced green industry movers and Shakers are going to work for the man six days a week for 50 weeks a year for chump change.

                              Now getting back to your job what you need to do is an actual cost analysis on each individual application considering material cost, labor cost, overhead, desired profit margin, and what the competition in your local market will allow.

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