The following are some items for Property Managers, Facility Managers, General Managers and Community Managers to consider when reviewing the pricing submitted by the landscape companies participating in their organization’s Request For Pricing (RFP):
Commercial landscape maintenance contracts are performance based, meaning the customer pays for results, not a set number of maintenance hours on a property.
The Commercial landscaping industry is very competitive, not just for customers but for labor as well. To retain the workforce necessary to staff a decent sized landscaping company, the company must offer competitive wages.
Landscape Account Managers calculate the number of “man hours” necessary to maintain a property through visual inspection, along with physical measurements of the various landscaped areas. Measuring can be accomplished manually or with the use of Google maps. Landscape Account Managers must factor in the amount of time required to drive to a property. The level of maintenance required is also a consideration. For example, a resort would demand a higher level of maintenance than an industrial park. Other factors to consider are the current condition of the property and irrigation system.
After calculating the number of hours, that figure is multiplied by the company’s man-hour rate (a combination of the workers’ hourly wages and other incremental costs) and then dump fees and chemical costs are added.
A tactic used by less reputable companies is to under price a job to win the business. If they’re successful, the result is combination of managing the property and the customer’s expectations. If that’s not possible, they’ll push for a rate increase and hope the manager doesn’t put the job back out to bid.
Another tactic is to “borrow” hours from another property the landscaper maintains, to temporarily appease the unhappy Property Manager. A juggling act occurs, where the landscaper’s Account Manager robs Peter to pay Paul and hopes that all the Property Managers involved will stay loyal.
Most Property Managers don’t want to micro manage their landscaping companies; they have enough on their plates. They also don’t want to spend their days listening to tenant complaints. If there are issues, they want one person to contact to take care of them.
If a property or facility manager receives a landscape maintenance bid much lower than the others, that person shouldn’t feel like he or she just won the landscape lottery. That person should expect a bumpy road ahead, because he or she will be spending more time dealing with landscape issues and have less time to complete other tasks.
If you’re looking for hassle-free commercial landscape maintenance, priced right. contact Heaviland Landscape Management today or complete the form on the right side of this page.