PDA

View Full Version : Lawn and Landscape Bids - Estimating


lbtcadmin
07-21-2009, 05:12 PM
To Successfully Compete in The Lawn & Landscape Business
You Must Master Job Estimating and Bidding
www.nilssonbooks.com (http://www.nilssonbooks.com/)

Hit or miss bidding is out of the question because virtually every customer looks for, and usually takes, the absolute lowest price. There less room for error in setting a price that not only covers cost, but also provides an adequate profit. Easier said than done because the entire process must take into account numerous variables of cost in an industry where "time is money" is an understatement.

Of course the lazy way out is to totally ignore the cost of doing business, and focus instead on price. The reasoning is that if the price is right, you'll be awarded the job inspite of your costs. This is the same as saying that you have very little control over price and that price is decided in the market place. That may be true but the real reason you want to know cost is not so much that price is solely determined from costs but that cost is your "command center" of control. If you don't know cost you have no reference point of control. Without cost knowledge you actually give up control and don't know for certain on any completed project what the profit was, and in some cases may be uncertain if indeed costs were covered.

With job cost knowledge you can know if you have efficient costs (can't be done cheaper or faster) and that's about as good as it gets. Using your efficient costs as a starting point you can then develop prices. You might want to come up with three price levels for the very same job.* Base Price, Realistic Price, and Premium Price. For any one bidding event do the mental "gymnastics" of trying them on for size price wise to see which you'd like to go with. Sometimes a contractor may find himself "hungy" for work and at other times booked so far in advance that a lower price is not needed to generate work. Nevertheless, bidding and pricing is the single most important thing you'll do because it is the "future" of where your business is going. Today's bids are tomorrows' customers and the real "make up" of your company. Your company is the customers, you, employees, and assets necessary to deliver your services.

Determining job cost is the starting point to intelligent bidding and estimating. And, mastering the skills of estimating is the best defense to help ensure that the work is not over or underbid. Plenty of jobs are lost because of high bids where an acceptable profits could have been made with a lower price tag if the contractor had only known at the time. By the same token, plenty of jobs are won based on low price, too low in fact, making it a miserable experience having done the work. Priced just right is where you want to be but of course this doesn't guarantee you the work, just that if you do get it, there's a chance at profits.

Nilsson's job estimating and bidding system is in widespread use by landscape contractors, lawn & grounds maintenance companies, mowers, tree care operators, for preparing landscape estimates, maintenance costs, grounds maintenance bids, and irrigation contractrors for installation and service work. Nilsson's job estimating system are also used by snow & ice managers, Park and Recreation Grounds Maintenance Departments, and Golf Course Superintendents.
The Job Estimating System enables you to understand the scope of the lawn maintenance or landscape work and how many hours the total job will take from using The Labor Time Data Handbook - one of four books included with the system. You'll have a wide range of work bid

specifications language to choose from to word your contracts and proposals and write professionally worded maintenance & landscape job bid estimate specifications. You''ll learn how to bid on a wide variety of grounds maintenance and landscape install projects, and get tips and pointers on how to reach and to sell grounds maintenance and landscape installs to commercial & residential customers , what to charge for the work estimates based on average work times as given in the Labor Time Data Handbook which shows the amount of time it will take to complete hundreds of grounds maintenance job tasks and landscape installation work, and also mowing, lawn care, lawn fertilizing, landscaping, snow plowing, lawn irrigation systems, planting grass, shrub beds, maintaining and planting trees, and hundreds of grounds maintenance tasks in general.

Labor costs are the biggest expense in lawn and landscape work and labor hours need to be controlled. You need to know how long the work will take, and can't accurately bid the job, or assign the right number of employees without "job time information". The Labor Time Data Handbook serves as a valuable reference to use for job estimating and bidding that gives you the job time information needed to complete bids and estimates. Use the average times found in the handbook for developing lawn services and landscape project costs as well as your bid price. Later, use these same labor times to plan the work, assign crews to carry out the work, and to monitor labor inputs into the job. Know at all stages of job completion where you stand as to bid estimate labor hours and actual time to confirm that job completion goals are being met.




Main Reasons why lawn and landscape work bids get rejected by customers



1. Unrealistic view of the scope of the work ... you guessed at the time required.
2. Your costs really are what you say they are (but) compared to the competition your costs are (too high) to be competitive.
3. Workers don't perform efficiently and you bid the jobs based on that inefficiency, end up forecasting excessive hours, inflated price.
4. Your view of market conditions are unrealistic, you never checked what the competition charges.
5. You never kept records or measurement data for similar jobs and are guessing as to work task times, you always play it safe on bids, too many hours are "packed into" the price.
6. Your market is saturated with competition to the point where the close ratios are extremely low.
7. You never viewed your prices as to keeping them as low as possible and "affordable" to the customer base ... based on the theory that you would monitor the "best production method" to keep labor times down, prices low as well ... instead you price based on your cost, which may be unrealistic based on "real" but "slow" methods. Customers can't "afford" your production methods.

The Job Estimating & Bidding system includes four books: Labor Time Data Handbook - Grounds Maintenance Manual - Maintenance Estimating Kit - Pricing Your Services and used for job bids and job estimating on fixed contracts, and bidding on a per hour, and hourly rates requests, preparing contract price estimates and bid work proposals and detailed lawn and landscape job specifications that outline and explain job specifications and work for lawn & landscape customer contracts for homeowners, business owners, site developers.

Pricing Your Lawn Care - Landscape Services
When it comes to pricing lawn and landscape jobs nobody has more industry pricing information than Nilsson Associates. Nilsson's Job Price Guides covers lawn care job bidding & estimating landscaping job bids for commercial & residential customers. Get more customers. Price estimates & bids, grounds services, landscaping pricing estimates , estimating & bid the price seasonal work, year around commercial estimate contracts, best price per square foot, best grounds maintenance & landscaping job to bid & pricing, price of lawn care, lawn mowing price, aeration pricing, lawns, commercial landscape job bid estimates, maintenance estimating & pricing, mulching prices, pricing chemicals, weeding & aerating pricing, fertilizer prices, prices for organic fertilizer, pricing weeds in beds, pricing pruning & trimming trees & shrubs, pricing commercial & residential snow plowing, hardscape pricing, pricing hydroseeding, irrigation service estimates for commercial & residential, pricing seeding lawns, pricing lawn sod, prices for slit seeding lawns, pricing edging lawn beds, spring cleanup prices, pricing fall cleanups, hourly price of pressure washing walks & patios, pricing trees, stump grinding prices, price for gutter cleaning, lawn dethatching price, price for shoveling snow, pricing salting, price sanding.

More information about Nilsson's Labor Time Data Handbook ...
For Grounds Maintenance and Landscape Management & Installation Work shows How Long The Jobs Will Take based on time studies of the work under various conditions including weather, day of week, working conditions and factors that improve or decrease labor efficiency. Labor Time Data Handbook #1 Best Seller for Job Hours Estimating, by individual work task for Lawn Bids, Lawn Care Service & Commercial Landscape Business Contractors, Commercial & Residential sites of any size acreage. Also useful to Parks & Recreation Grounds Maintenance Departments, Schools, Playground Maintenance, Facility Grounds Managers For: Lawn Care & Landscape Business Maintenance Estimates, Commercial Landscaper bids for cost comparisons, Lawn Maintenance Operators who Bid: Lawns, Bid Chemical Programs, Bid Lawn Renovations & seeding, Campus Lawns & Grounds Managers and industrial cost and labor accountng applications as well as public bid labor cost and job cost expectations. The labor time data Has over 500 field tested, time-studied labor hours data for all grounds work, landscapes, lawn bids, service & landscaping and commercial grounds maintenance job estimating. Bid with more confidence, save time preparing bids using the labor hours time tables broken down by job criteria and know best crew size based on work assigned using a balanced labor crew time application that results in getting a full days work from lawn care & landscape employees, never under or overprice a bid again, set realistic labor goals for commercial grounds maintenance & landscape employees. Among many work task categories ... Includes labor hours for lawn Mowing, edging beds & walks, trimming shrubs, pruning plants & trees, snow plowing, ice control, tree planting, mulching beds, aeration, slit seeding, shrub beds, hardscapes, blowing leaves, lawn chemical applications, spring and fall cleanups, seed, flowers, and commercial lawn maintenance job tasks. Just about every job performed in a lawn mowing service landscaping business and grounds maintenance. Price and cost jobs fast using the daya by finding the lawn care, grounds maintenance or landscape job category, follow the tables for task time within the work category and developing a line-by-line job bid. When a lawn care or landscape job is finished, compare your budgeted hours gotten from the time tables with actual job time spent. Use the time tables to assign realistic daily work goals. Compile a month by month hourly work schedule for grounds maintenance work, landscape job tasks and know how many workers you need for mowing, cleanups, pruning, bed work etc. Post the labor hours to your customer records. Know the profitability of each custoemr account, see exactly where too much time was spent by work category. In the reference section capture and pinpoint job costs for lawn care, cleanups, edging, pruning, trimming, and all landscape and grounds maintenance work underway and use the outlines to recap labor costs, materials, direct costs and overhead costs. Use the landscape instalation formats as a guide to developing sequential, step by step work outlines for estimating landscape job costs and use these as a goal to plan and do the work each day that a landscape project is inderway and upon completion, compare budgeted goals or hours to actual hours the work took to completion.

Labor Time Data Table of Contents:
Introduction
How To Bid Contracts
Knowing The Scope of the Work
A Few Words About Profits
Units of Work
Service Frequency
Labor Times:
Aerification
Back Pack Spraying
Blowing
Cleanups
Dethatching
Edging
Grading
Granular Applications
Hydroseeding
Installing Flowers
Installing Pavers
Line Marking
Liquid Applications
Loading
Mowing
Mulching
Pavement Sweeping
Planting Shrubs & Trees
Pruning
Raking
Sanding & Salting
Seeding
Snow Blowing
Snow Plowing
Sodding
Staking & Guying
Stump Grinding
Trimming
Watering
Weeding
Reference Section:
Annual Sales Statistics
Calculating Equipment Costs
Employee Productivity
Fertilizer Recommendations
Mowing Height Recommendations
Grounds Maintenance Statistics
Labor Management
Landscape Construction Estimating
Non-Productive Time Cost Worksheet
Tables & Measures
MIscellaneous Formulas
Financial Formulas


Other


resources


Sales Boosters (http://nilssonbooks.com/sales_booster_package.htm)

Job Estimating Package (http://nilssonbooks.com/job_estimating_package.htm)
FREE Job Pricing Guidelines (http://nilssonbooks.com/free_job_guidelines.htm)
Labor Time Data Handbook (http://nilssonbooks.com/job_bidding_pricing.htm#)
New Business Startup Package (http://nilssonbooks.com/just_getting_started.htm)

Complete Operations Management System (http://nilssonbooks.com/coms_package.htm)


About Nilsson Associates
Business consultant, speaker, nationally recognized best selling author, Phil Nilsson's articles are published in Lawn & Landscape, PRO Magazine, The Arborist and Landscaper Publications. Nilsson's books are endorsed by national trade organizations and are in use by thousands of landscapers, parks, municipalities, universities and property managers. Nilsson owned and operated a successful Landscape Design-Build-Maintain firm for 15 years. Nilsson Associates are Consultants to the membership of the Professional Lawn Care Association of America.

When it comes to pricing and Job Estimating Strategies and Methods (http://nilssonbooks.com/job_estimating_package.htm) for lawn and landscape jobs nobody has more lawn & landscape business jobs pricing information than Nilsson Associates, Green Industry Consultants. Nilsson's Job Price Guides Books are from surveys conducted throughout the United States and covers lawn care bids, job bidding & estimating methods and trends for tree care, irrigation installation & service, pavement sweeping & maintenance, snow plowing operations, landscaping and hardscaping job bids for both commercial & residential customers.

Nilsson's Price Guidelines are also useful for real estate management companies, parks & recreation departments, municipalities, college and university campus grounds maintenance supervisors and grounds management cost estimators and budget departments. The Price Guides give an approximation of what their grounds care maintenance and landscape improvement jobs, grounds expansion and development costs are likely to be. The price guides are also useful if you are not aware of lowballer pricing levels or have no experience dealing with lowball contractors.

Nilsson Associates Pricing Your Services Book (http://nilssonbooks.com/job_bidding_pricing.htm#Pricing Your Services) is a good companion reference to the Job Pricing Guides as is the Job Estimating Bidding System that Nilsson offers for lawn and landscape business estimating methods & bids for grounds services, landscaping pricing estimates, estimating & bids the price seasonal work, year around commercial estimating contracts, campus grounds, price per square foot, best grounds maintenance & landscaping job to bid & pricing, price of lawn care, lawn mowing price, aeration pricing, lawns, commercial landscape job bid estimates.

Nilsson's books cover most all outdoor maintenance estimating & pricing, mulching prices, pricing chemicals, weeding & aerating pricing, fertilizer prices, prices for organic fertilizer, pricing weeds in beds, pricing pruning & trimming trees & shrubs, pricing commercial & residential snow plowing, hardscape pricing, pricing hydroseeding, irrigation service estimates for commercial & residential, pricing seeding lawns, pricing lawn sod, prices for slit seeding lawns, pricing edging lawn beds, spring cleanup prices, pricing fall cleanups, hourly price of pressure washing walks & patios, pricing trees, stump grinding prices, price for gutter cleaning, lawn dethatching price, price for shoveling snow, pricing salting, price for sanding.


Copyright 2008 by Nilsson Associates, Green Industry Consultants, All Rights Reserved


Nilsson Associates - Toll Free 866-280-2252 - www.nilssonbooks.com (http://www.nilssonbooks.com/)

http://nilssonbooks.com/_borders/Phil-Nilsson-Picture.jpg
Phil Nilsson
Nilsson Associates
Green Industry Consultants
374 Hart Street
Southington, CT 06489
Toll Free 866-280-2252



www.nilssonbooks.com (http://nilssonbooks.com/) email nilsson.assoc@snet.net




Nilsson's Job Estimating System (http://nilssonbooks.com/job_estimating_package.htm) has everything you need to evaluate job site specifications & work required, figure costs, how to price ~ lawns, grounds maintenance, landscape installs. You'll get step - by - step instructions, bid proposal outlines & customer contracts, labor hours job times. You'll get job price guides to compare your prices with the going rates, overhead costs, materials, profit ratios. You'll set realistic prices, and job labor hours goals based on field tested, proven, time studied labor hours for every job you bid. You'll know how to evaluate every job for total work hours required, the price to charge for the job, the profit you'll make, best crew size, job costs. You'll also get add-on service check lists to help you maximize sales by upselling customers on additional property improvements.


Special Book Discounts (http://nilssonbooks.com/discounts_and_deals.htm)


FREE JOB PRICING GUIDELINES (http://nilssonbooks.com/free_job_guidelines.htm)

http://hispaniclawnforum.com/banners/jobestpakbanpn.gif (http://nilssonbooks.com/job_estimating_package.htm)


http://hispaniclawnforum.com/banners/itvbanner1.gif (http://nilssonbooks.com/video_tapes.htm)


http://hispaniclawnforum.com/banners/coms_banner_d.gif (http://nilssonbooks.com/coms_package.htm)