By Phillip Meeks

One proof of professionalism is in the costing. That’s a cold, hard fact of the business world, and one upon which fly-by-nighters can easily get snagged.

It isn’t to say, however, that consumers always get what they pay for — although this usually proves true as well — or that some quality services aren’t more reasonable than others. What this does imply is that the more experience a landscape contracting company has, the more precision will be found in the costing phase of the process. This therefore improves your profit margins, while giving your clients the best deal possible.

Because so many factors that relate to irrigation costing lie beneath the surface (literally), this may be one of the most difficult-to-estimate offerings in the contractor’s bag. It’s important, then, to take your time in doing your analysis. More so than in any other portion of your business, become well-acquainted with a property’s limitations and the client’s preferences before you cost an irrigation system.

Two seemingly identical situations can be totally different in terms of water pressure and access, utilities and the homeowner’s ideals. Thus, it pays to do your homework for each project, rather than relying totally upon general rules of thumb.

Read the literature
Like in any other industry, irrigation is constantly being refined through the development of newer materials and more high-tech controllers. One of the best ways to keep tight reigns on your costing abilities is to stay up to date on the new products in the marketplace. Maybe you don’t have the time or inclination to attend every trade show that comes down the pike, but you may be able to carve out a few minutes every week for some basic product research.

Technology is one of the few things in this world that gets more affordable as time progresses. A controller with all the bells and whistles may be cheaper today than one with just the basic functions a few years back. However, don’t pay for features your client will never use. Know your choices. Read the product reviews in green industry publications. If you have Internet access, check the Web sites of manufacturers regularly to see if there’s anything new out there that can give customers more for their dollar. From one year to the next, it may be possible to meet the exact same irrigation need using less expensive and more reliable materials.

(By the way, have you ever ordered a product online and noticed a little box on the form? Beside it might be a message like, “Please send me occasional updates on XYZ Company’s new products.” Check that box. It means more mail, but it may also put you a half-step ahead of your competitors.)
Says Jason Cupp, president of The Kincaide Company in Overland Park, Kansas, “I still see contractors installing items such as controllers and heads that are the older technology. I think they do that for two reasons: it’s what they know, and are comfortable with; and they’re cheaper products, because they’re on the bottom of the pole technologically. This is bad for a couple of reasons: the customer ultimately gets an outdated product, and the pricing for the industry suffers because his price might be cheaper than the new standard.”

Another point to note: clients may be willing to pay more for technology that will help save them money in the long run. President Frank Coleman of the Tucker, Georgia-based Visionscapes, shares this example: “We just finished landscaping The Mall at Stonecrest in Lithonia, Georgia, just outside Atlanta. It’s a large regional mall that covers more than 100 acres. We implemented a new radio FM Band computerized system to manage the irrigation both on- and offsite.

This system monitors flow rates, so that if a head on a zone breaks, the system shuts off and sends the computer a message stating there is a problem with zone number 100. This saves both time and, more importantly, money. The system has a full weather station that monitors the weather, and will turn the system off if it’s too windy outside, or if it just rained. This feature alone will pay for the system in less than a year.”

Know thyself
It’s a point that’s been made time and time again, but it warrants repeating: unless you know the intricacies of your own company inside and out, you’ll never be able to maximize your bottom line. Strive to know your crews’ abilities. How efficient are they? Also, try to account for every cent of overhead that affects your company.

Cupp says, “I feel that some contractors submit lower bids to clients because they don’t fully understand the difference between gross and net. They look at an irrigation system and tell the client that the cost will be $3000. A contractor such as myself would charge $4500 for the same system. The lower-bid contractor simply looks at the revenue and thinks, ‘Wow, that’s a lot of money.’ They don’t take into consideration the costs of labor, parts and overhead — the indirect costs. I see this all the time in our industry, and it hurts us significantly.”

Having a firm grasp on such incidental costs associated with an irrigation project will permit you to factor these into your estimate, and you’ll be much less likely to lose money.

Know your subcontractors
Farmed-out components of an irrigation system can make or break a landscape professional, depending upon the subcontractor’s expertise. In such a case, what you’ll want to do is strive to work with those irrigation companies that have just as much practical experience as you. Better yet, find somebody with even more experience, and then it becomes a learning opportunity.
Says Coleman, “Several years ago, we renovated a large commercial property that had a 20-year old hydraulic system. Our subcontractor installed all new valves, heads, wiring and controllers. In pricing the job, he assumed that he would be able to use existing PVC to go under roadways and sidewalks. He found some, but not many, and was required to bore in numerous areas to gain access to the necessary landscape beds. In this situation, he lost money due to underestimating the project.”

Over- and under-design by subcontractors can also be a detriment, says Coleman. Over-design can price you out of a job, while under-design can lead to lesser coverage and thus to a loss of vegetation. “Either way,” he says, “it’s a losing situation.”

Sure, seeking answers to so many questions is time consuming, but it’s sure to pay off in the long run. “There’s a large handful of contractors (at least in my market) who shoot from the hip for their pricing,” says Cupp. “They have no idea what parts go into a system or what the labor factor is. They ‘throw out a number’ and hope to get the business. I believe there are critical questions you have to have answered to accurately set the cost of an irrigation system.”

Not even the most experienced irrigation contractor is likely to maximize his or her profit with every installation. Some challenges just can’t be predicted; some clients can’t be pleased. However, you can definitely improve your odds by carefully considering the project’s parameters. Before you quote a figure, become well-versed with the client’s wants and needs. Know the features the property will support — and the ones it won’t. Become a walking reference book of your labor expenses, employee capabilities, overhead costs and other incidentals. Also, read everything you can get your hands on regarding new products in your field: the pros and cons of each, their costs, their potential to replace costlier or less efficient products and so on.

Anybody can, as Jason Cupp says, “shoot from the hip” when it comes to pricing an irrigation job, but it’s your obligation as a professional in this industry to take careful aim. Hit too high and you lose business, too low and you lose profit. Sighting from behind the proper knowledge, though, will increase your chances of being right on target.

February 2002