Landscaping Service Pricing Analysis
You own a landscaping company for residential properties. Your average cost for design and implement a standard landscape change per residential property is as follows:
Bushes @ $130
Fill Dirt @ $75
Mulch @ $40
Labor (12 hours @ $10 hour)
Indirect Labor (2 hour @ $14 hour)
You have the opportunity to propose a price for a neigborhood Homes Association which would be 12 properties. You would like to use the standard cost per property as your basis for the cost estimate. Would it be profitable if you propose $7,000?
If you desired to make at least 15% profit above your costs, what would be the lowest you could bid and meet your profit goal?