Total Landscape Care Digital Magazine
Issue link: http://read.dmtmag.com/i/85696
how to 4 Estimate the cost of materials. This is a straightforward cost to pin down. Examples: How many cubic yards of mulch are required? Accuracy here depends directly on the plan and project specifi cations you develop in Step Three. 5 Estimate "This is the easiest part of the equation," Bass says. Ask the subs to take a look at the project specifi cations and add their quote to your costs. subcontractor costs. 6 Use a production It's critical to know how much work each piece of equip- ment can produce in an hour. Example: How much turf can one of your mowers cut per hour? If you don't know, make a list of your equipment and perform time-and-motion studies on a variety of jobs. rate-based formula to estimate equipment costs. 7 Use production-rate 8 Submit a bid. data to estimate labor costs. Just as with equipment, you need to know how much work employees can do in an hour with various tasks. Perform studies to obtain accurate data. "Focus all of your energy and effort on getting the right price — the price that's right for your com- pany and right for your customer," Bass says. Accurate estimating prepares and protects your bidding process. 9 Create a sales "You must have a process for dealing with price objections that are sure to come," Bass says. "You're go- ing to have to become a better salesperson and improve your overcoming-objections skills." Example: Point out things that differentiate your company from competi- tors, such as certifi ed employees, more on-the-job ex- perience or newer equipment less prone to breakdowns. process to seal the deal. 10 You win! Now comes job-costing analysis. Compare your estimate to the actual costs. "The most profi table companies spend as much or more time focusing on job costing than any other part of their business," Bass says. "They know if they don't keep good records of different tasks and how much time each requires, they're not going to get better." February 2012 / TOTAL LANDSCAPE CARE 19