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Cost Savings Analysis: Natural vs. Synthetic Turf – Commercial

Santa Fe RV Park -San Diego CA

The following Table is a pro forma study of the comparative costs of a Synthetic Turf System.  Costs are for an application area of 14,500 sq. ft. over a 20 year period.

Financial Assumptions:

1.   Figures are not inflation adjusted.

2.   We estimate for commercial property grass replacement every 10years.

3.   Sprinkler system cost not added to grass purchase.

4.   All figures are conservative estimates based on a combination of industry averages and your specific figures such as water and mowing.

Cost Savings Comparison – Grass vs. Synthetic Lawn

 

10 year finance 5% apr Total Price: $37,100

 

 

10 year finance 5% apr Total Price: $90,254

 

Grass Expenses

Annual # of Services

Cost per Service

Annual Expense

Synthetic Grass / Putting Green

Annual # of Services

Cost per Service

Annual Expense

Annual Debt Service

12

$309.20

$3,710

Annual Debt Service

12

$730

$8,760

Watering

12

$275.32

$3,304

Watering

0

0

0

Mowing2

52

$92.30

$4,800

Mowing2

0

0

0

Fertilizer

12

 

$200

Fertilizer

0

0

0

Weed Control

10

 

$200

Weed Control

0

0

0

Pest Control

10

 

$200

Pest Control

0

0

0

Over Seeding

2

 

$200

Over Seeding

0

0

0

Top Dressing

4

 

$200

Top Dressing

0

0

0

Total Year 1

$12,814

Total Year 1

$8,760

Total Year 10

$128,140

Total Year 10

$90,254

Total Year 20*

$256,280

Total Year 20**

$90,254

*Must replace grass +/- every 10 years 2 Estimated not line item on bill

**20 year life expectancy

A few highlights stand out. In the very first year roughly $4,760 IS saved in cash flow. That is a 45% reduction in your grass related expenses! These savings are to be expected month after month. In addition to current savings, water and other maintenance costs may increase significantly in the future. Switching from grass to synthetic lawn now can make an immediate positive impact to cash flow. Using this scenario the break-even is less than 8 years for a 20+ year capital improvement!

These quantitative measures must be weighed against other qualitative factors. Some of the value added benefits to your property include:

·         Your residents will appreciate the fact that lawn mower noise will be non-existent.

·         The putting green component is a new amenity for the park and may attract new customers who golf.

·         By saving water your company is participating in the continued push towards “eco-green” business practices.

·         The aesthetic benefits are real and remain year after year as the UV coated synthetic blades won’t fade from the sun.

 

Contributed for reference by One Putt Greens - One Putt Greens © 2008. All rights reserved.  For informational purposed only.

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