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Old 08-06-2006, 04:11 PM
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Quote:
It has no relationship to landscaping what so ever.
Actually it does.

What I mean by this is not that it will affect how you look at protecting your margins. You'll still be looking at costs vs. profit, for sure. That part remains the same.

What it DOES affect is how you present your proposals to people. If proposals are itemized, you can bet that your clients will be walking around the garden center comparing what's on their quote to retail pricing. In retail, the markup on the plant is where the profit comes from, in landscaping, it's all about time. How you marry the two of those on a landscape quote is where you'll have to adjust your bid process, not how you look at your bottom line.

And certainly how you allocate overhead will be changed. What percent of rent, etc. goes to be recovered in retail pricing? What percent needs to be recovered by landscaping?

It's a total adjustment of your business model & you'll have to have new systems in place to account for this.
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