Why Successful Landscape Companies LOVE Losing Bids
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Transcript of Why Successful Landscape Companies LOVE Losing Bids
Why Successful Landscape Companies
LOVE Losing Bids
One of the biggest mistakes in the landscaping industry is accepting
every contract that comes your way
The most powerful position in negotiating is being willing to
walk away
Before you can successfully walk away you must have a
clear reason for walking away
The most effective reason is because you Know Your
Numbers
Know your Break Even Point
Know your Profit Margin
The most successful landscape companies operate their business
from their estimate sheet
They do not get upset when they lose a bid or someone tries to negotiate them down to a silly low number
Because they know their numbers it is an easy decision to walk away from a project
Who want's to work for free?
Knowing your numbers (really knowing them) gives you the
power to walk way from bad contracts
It feels great to lose a bid when you know the contract is a
loser
Many Landscape Professionals don't know their real numbers and they accept bad contacts
Many Landscape Professionals don't know their real numbers and they accept bad contacts
The worst part is they don't realize they are losing money
They may think that since they cover materials and field labor
they have made a profit
They forget to account for overhead… or they guess their
overhead expense
If you are constantly busy but not making money then there is a good
chance you don't have control of your numbers
When you know your numbers it's a powerful feeling to walk
away from a project
Because you know you are in control of your Time, Business
and Profits
Here are a few numbers I suggest you know:
Annual Profit & Loss Statement
Monthly Profit & Loss Statement
Overhead Rate Per Field Labor Hour
Labor Burden
Average Field Labor Wage
Estimating Budget
Production Times
Invest the time and energy into knowing your numbers inside and
out your success will be inevitable
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