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 15 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.
