LANDSCAPING JOBS: HOW TO BID CORRECTLY
Are you a landscaping professional looking to win more bids and grow your business? Understanding how to accurately price your services is key to success in the competitive world of landscaping. In this blog post, we will guide you through the essential steps of bidding on landscaping projects, from reviewing bid documents to estimating labor costs and adding profit margins. Let’s dive in and learn how to bid correctly for landscaping jobs!
7 Essential Steps to Win More Bids
1. Choose Your Landscaping Projects Wisely
When it comes to bidding on landscaping projects, selecting the right ones to focus your efforts on is crucial. Consider factors such as project size, complexity, and client expectations before committing. Look for projects that align with your expertise and resources to ensure successful completion.
Research the client’s needs and preferences to assess if their vision aligns with what you can offer. Communication is key in understanding their requirements and ensuring a smooth working relationship throughout the project duration. A few questions to ask are:
- Does the client require any specific landscaping services?
- Is there a previous project of similar scope that my team has completed successfully?
- Which landscape techs do we have available to work on this project?
- Will the project require contractors, rental equipment, or any additional resources?
- How long will it take to complete the project?
Evaluate each potential project carefully, taking into account your team’s skill set and available equipment. Choose projects that you can deliver on time and within budget while maintaining high-quality standards. Avoid overcommitting or taking on projects beyond your capabilities.
2. Review the Bid Documents Carefully
When it comes to bidding on landscaping jobs, reviewing the bid documents is an important step in the process. These documents provide essential details about the project scope, requirements, and timeline. Take the time to carefully read through each document to ensure you fully understand what is expected.
- Pay close attention to any specific instructions or specifications outlined in the bid documents, so you can tailor your proposal accordingly.
- Look for any key deadlines or milestones mentioned in the bid documents to better plan your schedule and allocate resources effectively to meet project deadlines.
- Ask questions to clarify what is needed regarding the bid documents to avoid misunderstandings later on during the project execution phase.
It’s essential that you invest in field service management software, such as SAWIN, to help you keep customer documents, contracts, and scheduling organized and available in real-time. With SAWIN software, your team will always be ready to fulfill contracted service demands and complete the project on time.
3. Price your materials and supplies
When it comes to pricing your materials and supplies for landscaping jobs, accuracy is key. Start by creating a detailed list of all the items you’ll need, from plants and soil to tools and equipment. Research different suppliers to compare prices and quality – sometimes paying a bit more for better materials can save you money in the long run.
Consider factors like quantity discounts, shipping costs, and availability when sourcing your supplies. Don’t forget to include any taxes or fees in your calculations as well. It’s important to factor in potential price fluctuations due to market conditions or seasonal changes.
Keep track of all expenses related to materials and supplies throughout the project with job costing software, like SAWIN, to ensure you stay within budget. Remember that transparency with clients about costs will help build trust and credibility in your bids. By accurately pricing your materials, you can provide competitive quotes while maintaining profitability on landscaping projects.
SAWIN job costing software will give you a quick breakdown of job costs based on materials, equipment, PO, commissions, and labor burden, so you can quickly evaluate if this is the right landscaping job for your team.
4. Effectively Estimate Your Labor Cost
When estimating your labor cost for landscaping projects make sure to consider the skills and experience of your team. Experienced landscapers may command a higher rate due to their expertise in handling various tasks efficiently. Be realistic about how long each task will take and allocate enough hours accordingly.
- How many workers will you need on the project?
- How long will it take them to complete the job?
To calculate your labor costs, multiply your employee’s total labor cost (hourly wages plus labor expenses) by the estimated number of hours the job will take.
For example, if the project is expected to take 50 hours to complete and your hourly labor cost is $45, your estimated labor cost will be $2,250.
Communicate clearly with your team about their roles and responsibilities on the project to ensure everyone is on the same page regarding labor expectations and costs involved. SAWIN time tracking software is a powerful tool to manage team efficiency. With your team’s time accurately accounted for, you can see the profitability of your projects with interactive, real-time reporting.
5. Accurately Calculate Your Overhead and Profit Margin
Overhead costs include expenses like equipment maintenance, insurance, office rent, and utilities that are necessary for running your operation smoothly. It’s essential to accurately calculate these costs to cover all bases.
Profit margin is what allows you to make money on top of covering your expenses. This percentage will vary depending on factors like market demand, competition, and the complexity of the project. Setting a reasonable profit margin ensures that you’re adequately compensated for your skills and expertise.
To make sure your overhead costs are covered, tally your estimated weekly overhead expenses, then divide that number by the average number of hours you work per week. This will give you your hourly overhead rate.
For example, if your weekly overhead costs are $800 and you work an average of 40 hours per week, your hourly overhead is $20.
Then, multiply that number by the estimated number of hours for the project. If you expect the job will take 20 hours to complete, your overhead will be:
(800 / 40) x 20 = $400
Finally, add your profit margin. Your landscaping profit margin is the amount of money you keep after you’ve covered the cost of labor, materials, and overhead.
For your landscaping business to be successful, your profit margin should be between 15% to 45%.
6. Create and Send Your Landscaping Proposal
Once you have carefully estimated your costs, it’s time to create a professional landscaping bid. Make sure your bid is clear, concise, and tailored to meet the client’s specific needs. It should include the following:
- Your landscaping business name, company logo, and contact details
- Your client’s information – property address, phone number, and email
- A breakdown of the landscaping services you’ll be providing and associated labor costs
- Photos or sketches to help visualize the final result for your client
- The materials required and cost for each (including plants, sod, mulch, and any decking materials)
- Optional line items for additional services or premium materials
- The total estimated price for the landscaping job, including taxes
- Terms and conditions – any warranties and payment terms
- Projected timeline for the project, including start and end dates
Before emailing a PDF of your bid, double-check for any errors or inconsistencies that could impact your credibility. Personalize your communication with a brief cover letter addressing the client by name and expressing enthusiasm for the opportunity to work together. Send out your landscaping bid promptly while maintaining open lines of communication with the client throughout the bidding process.
7. Be Proactive. Follow Up with Your Client
If you haven’t heard back within a week or two, follow up with the client to see if they have any questions about your bid. Stay proactive by utilizing customer management software, like SAWIN. The powerful tools will help you keep track of all project communication from initial contact to project completion.
Following up demonstrates reliability and can set you apart from competitors who may not be as diligent. Remember, a successful bid process is not just about winning the project, but also about building lasting relationships with clients for future opportunities.