Ms. Gripshover

Landscaping

Unit 12

Pricing the Landscape Plan

Identify the difference between an estimate and a bid.

Describe landscape specifications.

Prepare a cost estimate of the landscape plan.

Our Objectives

When meeting with a customer, the designer msut be prepared to discuss prices

Estimate- the initial price presented to the customer

Rough guess of cost including labor and materials

Price can change throughout the process

Sometimes “bids” are taken for a jobLandscaper gives a “bid”, which is an exact price

and CANNOT be changedOther landscapers can offer bids and usually the

customer takes the lowest bid

What is the difference between an estimate and a bid?

Specifications are a list of all the details needed to install the landscape plan accuratelySize and number of plantsPacing material needDecks or patiosAmending the soilMulchEtc.

The more detailed the specifications, the more accurate the landscape

What are landscape specifications?

Cost estimate- written statement of the costs of installing a landscape planIncludes descriptions, numbers, cost of

plant material, etc.Includes overhead costs, labor, and profit

Overhead costs- cost of operating a businessEx: maintenance of equipment, utilities,

etc.Usually calculated by calculating 20% of

the material and labor cost

How do I prepare a cost estimate for a landscape plan?

Determine the overhead cost The total of materials and labor are $432.23. What

price should be added to that to cover overhead? The total of materials and labor are $1567.89. What

price should be added to that to cover overhead? The total of materials and labor are $4524.12. What

price should be added to that to cover overhead? The total of materials and labor are $1234.56. What

price should be added to that to cover overhead? The total of materials and labor are $6789.12. What

price should be added to that to cover overhead?

Your Task

Contingency costs- added to all plans as insurance against unforeseen problems like weather

Usually calculate 10% of the material and labor costs

Landscaper can not only charge for materials, labor, and cost of operation however

They must make a profitThe money left after all the costs of operation are

completeCalculating by taking the total of everything and

multiplying by 20%

How do I prepare a cost estimate for a landscape plan? (cont.)

Determine the contingency cost. The total of materials and labor are $432.23.

What price should be added to that to contingency?

The total of materials and labor are $1567.89. What price should be added to that to contingency?

The total of materials and labor are $4524.12. What price should be added to that to contingency?

The total of materials and labor are $1234.56. What price should be added to that to contingency?

The total of materials and labor are $6789.12. What price should be added to that to contingency?

Your Task

Determine the profit based on the %. Total cost of job is 123.45 and you want to make a

20% profit. How much will you add to the total cost? Total cost of the job is 4567.89 and you want to make

a 35% profit. After adding the 35% profit to the total cost of the job, what is the final TOTAL price?

Total cost of the job is 8925.35 and you want to make a 20%. How much will you add to the total cost.

Total cost of the job is 4562.65 and you want to make a 15% profit. After adding the 15% profit to the total cost of the job, what is the final TOTAL price?

Total cost of the job is 12345.49 and you want to make a 30% profit. After adding the 30% profit to the total cost of the job, what is the final TOTAL price?