Thread: % of loss
View Single Post
  #8 (permalink)  
Old 03-26-2008, 12:58 AM
Green4Me Green4Me is offline
Gold Oak Member
 
Join Date: Jun 2004
Location: Junction City, OR
USDA Zone 8
Posts: 111
Green4Me is an unknown quantity at this point
You are doing the math right. Not difficult math, just dollars and cents. Think of it in terms of your wallet and it sharpens your focus.
You might want to think of your pricing in terms of plant costs marked up plus, your labor costs to install to arrive at a bid price other that just doubling your cost. Just using the multiplier of 2x or 3 x to check your overall pricing based on your detailed cost workup, which is based on your labor hours, equipment costs, material costs and other miscellaneous costs. Your labor hours should include your overhead recovery costs, as we discussed in another thread.

I use the cost structure of Labor, Equipment, Materials and other costs. Your plant costs may have charges in each of these categories. Just doubling the cost of a $150 tree may not cover your costs. Then if you need to sharpen your bid, you might consider the type of plant materials and some have higher mortality rates than others. You may be able to adjust your percentages for warranty.

for instance, It always bugs me that a reforestation crew can just plant acres and acres of Douglas Fir trees and they live. Yet I plant 20 5' firs from containers, water and feed them carefully for 2 years and just before my 2 yr warranty is up, 4 of them just give up the ghost. Dang!
__________________
Michael Kemp
NW Greenways Inc
541-998-8700
m.kemp@usa.net

semper viridis
Reply With Quote