After of few years of servicing residential properties. You’ve become more experience and knowledgeable. Because of your stellar work you’ve been approach by businesses both large and small about contracting to them. You have always turned them down, wanting to grow your business on a much smaller scale. But now you feel its time. Time to call back all those interested parties and start bidding on larger accounts. Now you feel it’s time to take your tree trimming business to the next level. That means going commercial.
There is a big difference between bidding on residential accounts and bidding on commercial accounts. An entire different process. In fact bidding on commercial accounts is all about crunching the numbers, as they say. It’s a numbers game. Most commercial buildings will try to save money in any way they can. So they will not even considered your bid unless is at a price they feel is the best deal. Keep this in mind when you start constructing your bids.
Know what the client wants and what he expects from you and your work. More likely than not they are other tree services bidding on the same job. And all of you are working with the same amount of overhead as far as cost is concern.
Know this and find out who is bidding on this same job. If there are other bidders find out how they normally bid. Also determined a formula that will correlate the size of the task and the number of man hours it will take to get it done. After you figure out the man hours to complete the task multiply that by whatever you plan on paying your employees.
How to bid tree service Jobs?
Make sure to include taxes, insurance, workers compensation, processing, on top of their hourly wage and whatever overhead you have. Then you factor in the cost of material, equipment, fuel for your machine and work vehicles. Figure how many working days you will have giving a little extra time for days with bad weather that may occur. This should give you a figure about what it will cost for you and your crew to do the job.
Now it’s time that you can include you’re profit. And that’s basically it. All these variable must be consider before submitting your bid. Of course there are ways that you can cut down your expenses, work more efficiently and save some money in order to receive a higher profit. But overall that’s a pretty accurate process of submitting. Do not be that person that creates some arbitrary number of what he feels or heard that type of job should cost.
Operating a business like this is just setting yourself up for failure. Without knowing the cost on your end how will you know if you’re making a profit, breaking even, or losing money? Do it the right way, every way and you have a better chance of remaining a business.
This is a pretty basic overview on the variable to consider when a tree service decides to go commercial. Knowing this before submitting bids allows the business owner to way his risk. Can he afford to operate at this level or should he wait a little while before making this step. Looking at some at these large tree servicing and landscaping companies with their fancy new trucks and equipment’s it looks grand. But as the saying goes the grass is not always greener on the other side.