Why Successful Landscape Companies LOVE Losing Bids

31
Why Successful Landscape Companies LOVE Losing Bids

Transcript of Why Successful Landscape Companies LOVE Losing Bids

Page 1: Why Successful Landscape Companies LOVE Losing Bids

Why Successful Landscape Companies

LOVE Losing Bids

Page 2: Why Successful Landscape Companies LOVE Losing Bids

One of the biggest mistakes in the landscaping industry is accepting

every contract that comes your way 

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The most powerful position in negotiating is being willing to

walk away  

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Before you can successfully walk away you must have a

clear reason for walking away

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The most effective reason is because you Know Your

Numbers

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Know your Break Even Point

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Know your Profit Margin

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The most successful landscape companies operate their business

from their estimate sheet

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They do not get upset when they lose a bid or someone tries to negotiate them down to a silly low number 

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Because they know their numbers it is an easy decision to walk away from a project 

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Who want's to work for free? 

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Knowing your numbers (really knowing them) gives you the

power to walk way from bad contracts 

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It feels great to lose a bid when you know the contract is a

loser  

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Many Landscape Professionals don't know their real numbers and they accept bad contacts  

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Many Landscape Professionals don't know their real numbers and they accept bad contacts  

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The worst part is they don't realize they are losing money  

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They may think that since they cover materials and field labor

they have made a profit

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They forget to account for overhead… or they guess their

overhead expense

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If you are constantly busy but not making money then there is a good

chance you don't have control of your numbers

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When you know your numbers it's a powerful feeling to walk

away from a project

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Because you know you are in control of your Time, Business

and Profits

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Here are a few numbers I suggest you know: 

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Annual Profit & Loss Statement  

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Monthly Profit & Loss Statement  

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Overhead Rate Per Field Labor Hour  

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Labor Burden  

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Average Field Labor Wage

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Estimating Budget

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Production Times

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Invest the time and energy into knowing your numbers inside and

out your success will be inevitable

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