Announcement

Collapse
No announcement yet.

Price Charge Survey

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • #16
    Hi Chuck,

    I have always helped & advised anyone who asked me for help & wanted to do the right thing as some others both in my area & on this forum did for me back when I really needed the guidance. though at the same time most half-assed low ballers don't stay in business long enough to make much a dent in my marketshare as far as I can tell (I could be wrong but business is good so I don' worry about it all that much)
    Yes new lawn care business owners will come and go because they under price however there is always going to be a steady stream of them and one that fails is replaced by 2 or 3 or 4 or ...... others.

    I would say think of this as a virtual union concept. The union comes up with a price and the factory pays it. The union protects it's employees with a collective awareness of bigger pictures that the individual is unaware of.

    If your state shoots for an average of $35 per lawn and you know this, you would shoot for it too.

    When everyone shoots for a collective price per service, ultimately you help take price competition off the table and you focus on other issues to sell a service. Like how is the service regardless of the price.

    In the big picture you benefit from this.

    That's my view at least. This is all a big experiment and we will see how it goes, but wouldn't you like to know how your prices compare with others? Wouldn't you feel pretty good if you knew you were above the normal prices and you could get that because of your service? Or what if you found you were below the average, wouldn't you like to increase your prices? Wouldn't anybody?

    DJ,

    When some one ask me how much to charge i tell them as much as they can get!
    I agree, and then I would ask, how much can I get? What is the average in my area? I would like to know.

    Regardless of my costs, I want to know how much I can get.

    Knowing your costs helps you know if you are going to make a profit or take a loss but knowing your costs does not let you pick a price to charge in a vacuum without regard of competitors. You really need to know a range to shoot for.

    If my costs are $100 per man hour and I decide I need to charge $120 per man hour to perform lawn care and the average in my area is $50 per man hour, I better have some super duper amazing service to justify. But customers are not going to care what my costs are when I charge them. Customers are going to see what the going rate is and then factor, how much they prefer me over others. How much better a job I do than others. etc etc

    What do you all think of this?
    - Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
    Download your Free trial of Gopher Lawn Care Software.

    Comment


    • #17
      I have also helped a ton of guys out (Little's, Phil, Justin, Barry etc....)
      Thanks Chuck

      Btw, I assume your a busy guy, you don't get the chance to chat to me anymore brother, what's up

      Comment


      • #18
        Dj,



        I Agree, And Then I Would Ask, How Much Can I Get? What Is The Average In My Area? I Would Like To Know.the Average Doesn't Matter. Figure Out Your Cost Throw In Your 30% Owner Draw And 10 To 15 Percent For The Company Retained Earnings And That Is What You Have To Charge!!!!

        Regardless Of My Costs, I Want To Know How Much I Can Get. it Doesn't Matter!!!! Your Numbers Tell You What You Better Get!!!!

        Knowing Your Costs Helps You Know If You Are Going To Make A Profit Or Take A Loss But Knowing Your Costs Does Not Let You pick A Price To Charge In A Vacuum Without Regard Of Competitors. You Really Need To Know A Range To Shoot For.a Price Should Be A Strategically Figured Number.

        If My Costs Are $100 Per Man Hour And I Decide I Need To Charge $120 Per Man Hour To Perform Lawn Care And The Average In My Area Is $50 Per Man Hour,then You Need To Stop Right There And Find Something Else To Do Or Decide If You Wanna Cut Corners Like Every One Else I Better Have Some Super Duper Amazing Service To Justify. But Customers Are Not Going To Care What My Costs Are When I Charge Them. Customers Are Going To See What The Going Rate Is And Then Factor, How Much They Prefer Me Over Others. How Much Better A Job I Do Than Others. Etc Etc

        What Do You All Think Of This?
        Great Thread Guys!!!!!!!!!!!!!!
        DJ Carroll
        EasyPro Property Services
        502-525-3279

        Comment


        • #19
          the Average Doesn't Matter. Figure Out Your Cost Throw In Your 30% Owner Draw And 10 To 15 Percent For The Company Retained Earnings And That Is What You Have To Charge!!!!
          Is this a standard view and if so, why is this a standard view? Do you feel most lawn care businesses follow this concept?
          - Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
          Download your Free trial of Gopher Lawn Care Software.

          Comment


          • #20
            I agree with Dj in that " don't tell a low baller what price to charge tell him how to figure it out "

            You have a great cost estimator on here now. Keep teaching them to use it or something similar.


            Justin,

            Sorry man, It's not that I've been avoiding ya by anymeans, it's just that skype seems to pops up with messages and spam & bimbetts named "candy" or "bubbles" who just wanna "chat" (get you to check out their **** site)about 400 times for every one time somebody I know contacts me on it. So I have it set as "Away". Things drives me crazy.

            Comment


            • #21
              Is this a standard view and if so, why is this a standard view? Do you feel most lawn care businesses follow this concept?
              Thats a basic business model steve. . .

              business is business no matter what your are doing the only thing that will change is the numbers . .. the percentages should stay close to the same

              ~30% to owner
              ~10%-15% equity in the company (net profit)
              ~25%-30% in labor cost
              ~20% for marketing and advertising
              ~10%-15% in supplies

              *this is just a common business model these numbers do not reflect mine and they should be customized to fit your business*
              DJ Carroll
              EasyPro Property Services
              502-525-3279

              Comment


              • #22
                Is this a standard view and if so, why is this a standard view? Do you feel most lawn care businesses follow this concept?
                Most small businesses not just LCO don't know their financial . . . that means they are a ticking time bomb and their clock is just winding down . . . eventually that will be the failure of their business
                DJ Carroll
                EasyPro Property Services
                502-525-3279

                Comment


                • #23
                  I appreciate your insight into this. I think that each business tends to have their own standards.

                  Who knows, maybe that is why so many of them fail.

                  Can anyone share with us how their % compare with these?
                  - Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
                  Download your Free trial of Gopher Lawn Care Software.

                  Comment


                  • #24
                    i just got a snowblower and wounding how to chage for did the job any help would be nice

                    Comment


                    • #25
                      Hi Moose,

                      Are you offering snow blowing by itself or do you you also offer snow plowing?

                      Here is some information I found online. Maybe this will help you.

                      Commercial Properties
                      Loader Snow-Blower - $115.00 per hour
                      Front End Loaders w/ 20 ft blade - $145.00 per hour
                      Front End Loaders w/ 2+ yd bucket - $85.00 per hour
                      Front End Loaders w/ 3+ yd bucket - $105.00 per hour
                      Dump Trucks for Hauling - $85.00 per hour
                      Plow Trucks - $75.00 per hour
                      Walk behind Snow Blower/Hand Work- $40.00 per hour
                      Holiday Rates – Christmas Day and New Year’s Day – Time and _
                      (1 hour minimums on all prices)
                      Residential Properties
                      Foreman Labor - $50.00 per hour
                      Walk Behind Snow Blower/ Hand Work - $40.00 per hour
                      Dump Trucks for Hauling - $85.00 per hour
                      Sanding parking lots and driveways - $50.00 minimum
                      Liquid De-Icer – $1.75 per gallon
                      Snow Staking - $65.00 per hour (stakes included)
                      Holiday Rates- Christmas Day and New Year’s Day – Time and _
                      (1 hour minimums on all prices)
                      * Optional Holiday snow plowing services, please check if you would like snow plowing
                      services on Christmas Day and New Year’s Day at Time plus _ rates.
                      - Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
                      Download your Free trial of Gopher Lawn Care Software.

                      Comment


                      • #26
                        landscaping

                        how do you or what do you go by on charging for landscaping maintenance only

                        Comment


                        • #27
                          Overhead expenses

                          I pretty much know exactly what I need to charge to make a good profit. One of the things that I am struggling with a little is how to "exactly" figure your overhead expenses when it comes to the equipment. I have seen some guys figure in what it would costs to replace their equip. in a fisical year and others who would figure it over the life spand of the equip. This is where I am confused. If you do large equip., this makes your overhead extremely high.

                          I am looking for a bullet proof way to figure my overhead costs!
                          sigpic
                          www.bnclawncare.com

                          Comment


                          • #28
                            Try this out. http://www.gopherforum.com/showthrea...3299#post43299

                            Comment


                            • #29
                              Thanks Hoss.

                              I made a new post on calculating overhead costs of equipment here.
                              - Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
                              Download your Free trial of Gopher Lawn Care Software.

                              Comment


                              • #30
                                Thanks Hoss.

                                I made a new post on calculating overhead costs of equipment here.
                                WoW! Great thread, but i will have to go with Chuck & DJ on this, every one has diffrent #'s that come into play to figure your operating costs.

                                If you want to know the average cost in your area, there are ways to do this, you can get estimates from other lco's on your own property , you can do a survey of your customers , friends, faimly that use lco's to do there lawns.
                                But each lco will have diffrent exspenses in operating there co. therfore a diffrent hourly cost of operation.

                                And yes i am one of the ones that Chuck went out of his way to help in the beginning, and that i will never forget, my lco would not have grown as fast as it has without his help and this site. Again Thank You Chuck for all your help in the past and i am sure the future

                                Comment

                                Working...
                                X