Pricing ????

[SECTLANDSCAPING]

Originally Posted by 6295danny Well I didn't think chargen another 60hr for one helper was fair price. Originally Posted by 6295danny So ur saying I need to charge 120 hr if I have a helper? If your charging $60 a hour then with 5 employees its $300 a hour. I mean you could give em a break and charge $100 a hour for 2 guys but most charge the same per hour charge per employee. We just calculate man hours. A hour for every man every hour there. Youll find workers comp starts at about $1500 a year and goes up for every $1000 in payroll. So theres additional expenses to having a helper. Its not as easy as I'm paying 10 a hour, it cost 10 a hour. It really cost 20 a hour and with fuel probably 30 a hour and so on.

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South Eastern Connecticut Landscaping /Lawn Care /Pressure Washing /Snow Removal /Gutter Cleaning
52" Brutus/52" Super Surfer/44" Pro Line/60" ZMaster
EB630/EB802/EBZ7150/EBZ8000/BR400/Billy Goat 8Hp
FS55&90/FC95/km110/L322&326/TR2350S
HC150/HC155/CHTZ2460
CS440/MS290
Case 1816 Skid

[6295danny]

Lawn care business tips

Ill figure it either way. Sorry if this is getting old but u keep replyn. Anyone else charge by the hour. How do you do it an be fair but profit.

[6295danny]

Originally Posted by SECTLANDSCAPING

If your charging $60 a hour then with 5 employees its $300 a hour. I mean you could give em a break and charge $100 a hour for 2 guys but most charge the same per hour charge per employee. We just calculate man hours. A hour for every man every hour there.

Youll find workers comp starts at about $1500 a year and goes up for every $1000 in payroll. So theres additional expenses to having a helper. Its not as easy as I'm paying 10 a hour, it cost 10 a hour. It really cost 20 a hour and with fuel probably 30 a hour and so on.

Ok got ya. Glad I didn't just bid for the 60hr...

[6295danny]

Originally Posted by 6295danny

Ok got ya. Glad I didn't just bid for the 60hr...

I never considered workers comp.... How does that work. Guessing its different state by state right. I think I was just reading unless ya have over 3 workers working full time, workers comp doesn't apply to my business. I wanna be sure tho. This is why I ask so many Questions.. I have no Idea how to run a business. Im a little worried here to be honest.
I do measure small residental lawns but when I measured this place the math didn't add up. Does now but hourly seems to be just as good as measuring. An quicker on these larger places. Ill do both ways a while an see what one works best for me.

[SomrakLC]

take the time it took you by yourself and cut it in half since there will be another person.

[6295danny]

Originally Posted by SomrakLC

take the time it took you by yourself and cut it in half since there will be another person.

Well that would work if I was using the same equipment. I have upgraded from a cub cadet 50 ztr stamped deck I use for my own yard. POS the hydros suck. To a scag turf tiger 61in deck. I was also usen a cheap curved shaft troy built weedeater now I have straight shaft 100cc sthils. I was usen a weed eater brand blower now got a sthil 600 mag.. I never used this equipment really since there is no grass to cut right now. I did try the mower out a little is some dead stuff an it cut the dead stuff 3 times faster than my cub and looked better at that. So all that is out the window.

[Steve]

Danny,

This discussion is a great example of why it is more ideal to start with mowing residential properties by yourself first. When you do this, you learn bidding basics. You learn how much you need to charge to operate per hour and you don't need a staff to complicate things.

Now that you are in this situation, I want to point a few things out. Don't worry if you are charging too much. If the customer agrees to the price, it's not too much for them. If your bid was too much, they would go with someone else.

Second, we can't tell you what your operating expenses are. That is based on your situation. How much are your expenses per year divided by how many man hours a year are you working. I know you aren't going to be able to answer this at the moment because it is all new.

When you start with smaller properties, you minimize the potential damage you can cause your business by underbidding because it's a small property that won't take too much time and not much in the way of equipment.

When you start with larger properties, you spend more time at the property and need more expensive equipment. If all of this is not paid for by a properly priced bid, it is a lot easier to find yourself not making anything or losing money while working on that property.

With all that said....

I mowed it for cash last 2 months of the summer last year keep in mind I was using a 50in mower. It took me about 8 hours to mow and I could weed eat an blow it in about 6 hrs or less.

So this job has taken you 14 man hours to do.

I bid $2500 per month for mowing twice a month

Let's do some math here.

It takes you 14 man hours per service. Multiply that by 2 mowings per month.

So we are at 28 man hours per month.

$2500 / 28 man hours = $89 per man hour.

If you are making $89 per man hour, I would venture to guess you will be alright with the job.

Now the question is, does this look right to you? Are these hours right?

[LawnBoy0311]

I am very confused. What is he asking again???


Oh wait, I think I got it.


Well.....


Wait a sec. Who's on first?

[6295danny]

Originally Posted by Steve

Danny,

This discussion is a great example of why it is more ideal to start with mowing residential properties by yourself first. When you do this, you learn bidding basics. You learn how much you need to charge to operate per hour and you don't need a staff to complicate things.

Now that you are in this situation, I want to point a few things out. Don't worry if you are charging too much. If the customer agrees to the price, it's not too much for them. If your bid was too much, they would go with someone else.

Second, we can't tell you what your operating expenses are. That is based on your situation. How much are your expenses per year divided by how many man hours a year are you working. I know you aren't going to be able to answer this at the moment because it is all new.

When you start with smaller properties, you minimize the potential damage you can cause your business by underbidding because it's a small property that won't take too much time and not much in the way of equipment.

When you start with larger properties, you spend more time at the property and need more expensive equipment. If all of this is not paid for by a properly priced bid, it is a lot easier to find yourself not making anything or losing money while working on that property.

With all that said....



So this job has taken you 14 man hours to do.



Let's do some math here.

It takes you 14 man hours per service. Multiply that by 2 mowings per month.

So we are at 28 man hours per month.

$2500 / 28 man hours = $89 per man hour.

If you are making $89 per man hour, I would venture to guess you will be alright with the job.

Now the question is, does this look right to you? Are these hours right?

Yea Steve that all sounds about right. I would like to have some more residential yards but alot of those are taken here by school kids. Funny thing is the reason I got the job is because im the only one that bid. along with about 5 other large properties i just got. An I have people calling me wanting bids on other commercial properties bc there where no one putting in bids on them. I guess ill jump into it all out an hope for the best. I just made a connection today with a old friend that has a lawn care service here local an is helping me with the bids. He has been mowing for 20 years now so hes steering me in the right path I hope. Thanks everyone for your info. Ill will get back with everyone later in the year on this topic an let you guys know if i survive or go broke..

[Steve]

I look forwards to hearing your view on servicing these properties once you get on them. How big they are in sqft, how long they took to service etc. Your reflections on the whole process once you get on them will surely be interesting.