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General Business Discussions

A place to talk about general business discussions.
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  #1  
Old 05-29-2008, 09:50 PM
hardyslawn hardyslawn is offline
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I just started in the business last year. This year I have about 3 customers, working on 3 more. For marketing, I have put an ad in the yankee flyer (in CT) for a couple of weeks, made flyers from the free downloads, handed some out for people to hang and give out. I've placed a few ads behind mail boxes. I have a 150 ford pick up, a craftmen 40 inch mower 20hp and a 20inch 6.2hp craftmen lawnmore, a stihl blower, trimmer and a stihl chain saw, also a 20 inch yard machine 4.5hp lawnmower, a stihl 63cc back pack blower, a husqavana back pack blower. I am currently looking for at leaast a 12x6 trailer and a comercial lawnmower. I dont know if I should get a mini 32 inch riding lawnmower or a walk behind. I need something thats good on hills, something thats capable of handling any type of turf at an affordable starting price. Can someone give me some advice? I really need help, starting form priceing on moweing, hauling away, clean up... the whole 9 yards.....
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Old 05-30-2008, 12:52 AM
StealthDumpTrucks
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As far as pricing goes, you need to sit down and figure out all your expenses first. Include everything, especially an allowance to maintain and replace your equipment. Add a net profit margin of 15-20%. If you can't bank a profit on your work you need to do something different. Divide your expenses and profit by the hours you expect to work to arrive at your hourly rate. If you add employees, you need to triple what you're paying them and add it to the rate.

When you do an estimate, consider the time it's going to take you round trip. This is your mobilization or "portal to portal" expenses. You can either add that line item in, or leave it out and increase the price. Essentially your customers are paying you to get to and from the job, that's not free with gas prices the way they are.....

Our government awards were sometimes protested by competitors who lost. The contracting officer would ask for justification of our pricing. In every case I was able to list each line item cost I just listed above and our net profit margin down to the penny. When it's all there in black and white, nobody can argue the facts.
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Old 05-30-2008, 10:21 AM
hardyslawn hardyslawn is offline
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Originally Posted by [b
Quote[/b] (StealthDumpTrucks @ May 30 2008,1:52)]As far as pricing goes, you need to sit down and figure out all your expenses first. *Include everything, especially an allowance to maintain and replace your equipment. *Add a net profit margin of 15-20%. *If you can't bank a profit on your work you need to do something different. *Divide your expenses and profit by the hours you expect to work to arrive at your hourly rate. *If you add employees, you need to triple what you're paying them and add it to the rate.

When you do an estimate, consider the time it's going to take you round trip. *This is your mobilization or "portal to portal" expenses. *You can either add that line item in, or leave it out and increase the price. *Essentially your customers are paying you to get to and from the job, that's not free with gas prices the way they are.....

Our government awards were sometimes protested by competitors who lost. *The contracting officer would ask for justification of our pricing. *In every case I was able to list each line item cost I just listed above and our net profit margin down to the penny. *When it's all there in black and white, nobody can argue the facts.
thanks for your response. It was very helpful. I got to sit down and figure out everything. Where r u from?
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Old 05-30-2008, 02:30 PM
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I'm in Virginia
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Old 05-31-2008, 01:49 AM
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Hi HardysLawn,

Welcome to our forum! What got you to start your lawn care business?
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