Why Successful Landscape Companies LOVE Losing Bids
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Transcript of Why Successful Landscape Companies LOVE Losing Bids
![Page 1: Why Successful Landscape Companies LOVE Losing Bids](https://reader035.fdocuments.in/reader035/viewer/2022062522/58a907cb1a28abb5218b4f27/html5/thumbnails/1.jpg)
Why Successful Landscape Companies
LOVE Losing Bids
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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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