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Pricing Landscape Maintenance Work

Pricing Landscape Maintenance Work

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Pricing Landscape Maintenance Work

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  1. Pricing Landscape Maintenance Work

  2. Next Generation Science/Common Core Standards Addressed! • CCSS. Math. Content.7.R P.A.3 Use proportional relationships to solve multistep ratio and percent problems. Examples: simple interest, tax, markups and markdowns, gratuities and commissions, fees, percent increase and decrease, percent error.

  3. Agriculture, Food, and Natural Resource Standards Addressed • ABS.02.02. Assemble, interpret and analyze financial information and reports to monitor AFNR business performance and support decision-making (e.g., income statements, balance sheets, cash-flow analysis, inventory reports, break-even analysis, return on investment, taxes, etc.). • ABS.02.02.03.b. Analyze and describe reporting requirements for different types of taxes paid by AFNR businesses (e.g., income, property, sales, employment, etc.).

  4. Bell Work/Unit Objectives • Identify the skills a landscape maintenance technician should master. • Describe how to estimate landscape maintenance costs. • Describe some advantages and disadvantages of using computer spreadsheets in the landscape maintenance business.

  5. Computer Spreadsheet Contingency Cost Estimate Sheet Job Cost Landscape Maintenance Landscape Maintenance Technician Overhead Costs Profit Total Project Cost Terms

  6. How Much Would You Charge for Maintenance?

  7. What Skills Must a LandscapeMaintenance Technician Master? • Identify the skills a landscape maintenance technician should master.

  8. Landscape Maintenance • The continued effort to preserve the existing landscape. • A landscape maintenance technicianis the person who is trained and given the responsibility of preserving the landscape. • Landscape maintenance technicians learn skills through formal and informal education. • The cost of landscape maintenance is influenced by the types of skills or jobs conducted.

  9. Landscape Maintenance Job Skills • Safety—safety should be the number one priority. • An understanding of safe tool and equipment operation is essential. • Training in first aid is also recommended. • Reading a plan—the ability to read and understand a plan in order to interpret the designer’s intent is crucial. • Measurements can also be taken from the plan to calculate maintenance costs.

  10. Job Skills Cont. • Plant identification and care—the ability to identify plants and an understanding of specific cultural requirements is valuable. • Grading and establishing turf—technicians should be able to level and grade an area and properly lay sod, plant plugs, or seed.

  11. Job Skills Cont. • Identification of irrigation components—since irrigation systems are common in landscapes, a technician needs to understand the function of each part of the system. • Programming controllers—irrigation controllers are the key that allows precise watering at specific times. • Knowledge of how they work and are installed is essential.

  12. Job Skills Cont. • Lateral line repair and head adjustment—since these are essential parts of irrigation systems, knowledge of how to adjust and service them is valuable. • Trucks and trailers—mastery of the tasks required by state licensing agencies is important. • Transplanting woody plants—a technician should possess knowledge of the planting procedures and care of newly planted plants.

  13. Job Skills Cont. • Pruning techniques—an understanding of reasons for pruning and various pruning techniques is important. • Mowing turf grass—a great part of landscape maintenance work involves mowing turf operation. • Knowledge of mowing heights, bagging requirements, and safe mower operation is beneficial. • Aerating turf grass—Technicians should recognize when soils need aerification and understand the safe operating of aerating equipment.

  14. Job Skills Cont. • Edging and trimming—training is essential in providing a clean appearance to the landscape. • Pesticide safety—the ability to mix and apply pesticides in accordance with label instructions in crucial. • This ability protects the technician, living things in the area, and the employer. • Fertilizing—Technicians should be able to choose fertilizers for specific uses and calculate the correct amounts to be applied.

  15. Knowledge of safety Ability to read plans Ability to identify and care for plants Skill in grading and establishing turf Understanding of irrigation components and controllers Ability to safely operate equipment (trucks & trailers) Knowledge of procedures and care of new transplants Understanding of mowing requirements Ability to mix and safely apply pesticides Knowledge of fertilizer composition and application rates. List of Skills

  16. How are Landscape Maintenance Cost Estimates Determined? • Describe how to estimate landscape maintenance costs.

  17. Determining Cost • It is important to understand that nearly every landscape maintenance company uses a different method for calculating an estimate. • There is no industry standard. However, from a business standpoint it is essential to determine a method for accurately pricing maintenance work. • Accurate pricing includes using an estimate sheet and understanding the procedures for completing it.

  18. Estimate Sheet • Form for calculating prices. It is for the landscaper only. • The customer receives a proposal sheet or contract with prices listed. • It is best if identical forms are used for each individual project.

  19. Information on an Estimate Sheet • Job name, location, and date that the estimate is prepared. • The size of the job and the work to be completed. • The number of hours and materials to be used in completing the job. • A calculation of the cost of the labor and materials used on the project.

  20. Procedure for Using an Estimate Sheet • Using actual wage rates and materials costs, calculate the total costs for the project. • The job costis the cost of the labor and materials necessary to complete a specific task or job. • If a task such as mowing is completed a number of times during the year, the job cost is multiplied by the number of times the job is done in order to calculate total annual costs.

  21. Procedure Cont. • Overhead costsare general costs associated with running a business. • They include costs like insurance, utilities, and lease payments. • A general rule is to calculate over-head costs at 20 percent of the job cost. • A contingency costaccounts for unanticipated expenses. • Such expenses include theft of materials and equipment breakdowns. • An acceptable contingency charge is calculated by adding 10 percent to overhead and job costs.

  22. Procedure Cont. • A cost summation is the adding together of the job costs, overhead costs, and contingency costs. • Profitis the amount of money received after deducting all project costs. • A fair rate of profit is 20 percent of the cost summation. • Total project costis the sum of the cost summation and the profit. • It is the price that is presented on a proposal sheet or contract to a customer.

  23. What are Some Advantages and Disadvantages of Using Computer Spreadsheetsin the Landscape Maintenance Business? • Describe some advantages and disadvantages of using computer spreadsheets in the landscape maintenance business.

  24. What is It? • A computer spreadsheetis an all-purpose computer program that is useful for tasks involving the organization of numbers. • They are efficient tools in calculating costs, preparing estimates, and keeping records.

  25. Advantages • Savings in time required to calculate costs. • Space required to save records is relatively small. • Provide a finished, professional appearance to the customer. • Allow for quick cost comparisons between projects.

  26. Disadvantages • Training may be required to operate software. • Initial investment in new equipment and software may be substantial. • Continued investment required to keep up to date.

  27. Review • What skills must a landscape maintenance technician master? • How are landscape maintenance cost estimates determined? • What are some advantages and disadvantages of using computer spreadsheets in the landscape maintenance business?

  28. The End!