Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Lawn Care, Landscaping, and Property Management Forums > General Talk

General Talk If it doesn't fit anywhere else, post it here.

Lets call it Pricing


General Talk

If it doesn't fit anywhere else, post it here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 12-08-2007, 02:14 PM
realhuntin
Guest
 
Posts: n/a
Default

I hear a lot of talk about HOW to bid this and HOW to bid that or is this a good price to charge for this, is this to much or to little?

I know that every job is different, but the pricing shouldn't change. Providing you have set up a standards price list for service you'll be providding when you began your business venture. This list should have been one of the first things done before even bidding to the first customer. With out a price list how will you know what amount to charge for each service you provide?

When chosing the Services you are going to provide you should have a price to go along with that service. Now there are different chages for added difficulty, say you charge $45 min for cutting up to 3000 sq ft of level to slightly rolling lawn. Add $10.00 to that for every extra 1000 sq. ft and $5 for every step UP of difficulty. (excessive trees, extended plant areas, hilly or steep ditches that require more trimming time).

Lets say you have been cutting and some small landscaping details all summer and you have a customer ask for a fall clean up. You should have a good idea of how long it will take to clean up the leafs.

If not here is a common rule; For every 1000 sq.ft. of yard it should take 1 man 1.5 hrs. @ your hourly rate, if he/she is to blow into wind row and remove. (NOTE: to some who didn't or don't know wind rows are faster and easier to manage and pick up). Clean up around plant areas for every 500 sq. ft. should take 1 man 1.5 hrs. to hand rake and blow into yard. Also you would want to add gutter clean out in this automaticly at a rate of $1.00 per Ln. ft., now you will have dumping charges for this, if you don't have a place to dump for free, this charge should be 1.85 times the cost of dumping at your local dump and this will cover expenses (dump charges, fuel & time). ex. dump charge cost $85.00 x 1.85 = $157.25 now lets put this all together and see what comes of it.

4000 sq ft of yard = 6 man hrs @ $45 per hr.= $270.00
1000 sq ft of plant area = 3 man hrs @ $45 per hr = $135.00
60 Ln ft. of gutter = $1.00 per Ln ft. x 60 Ln ft. = $60.00
Dump/Removal Charge = $85 @ 1.85 multiplier = $157.25

Total Charges for the clean up $622.25 not bad for a days work. If you have an extra hand you should be able to complete this in 4 hours. Pay you helper $8 - $10 per hour if you have more jobs for that day or just pay them $100 bucks for that job.

Lets look @ the P&L for this job;
EXPENSE;
Fuel Cost Truck & Blowers $30
Dumping Charge $85
Extra Labor $100
Total Expense $215.00

P&L = $407.25 you just made $100.00 per hour by using a helper. The P&L will go up only slightly if you do this on your own.

The point I'm trying to make is set your prices and stick to them. every job is different but the hourly charges per man hour and flat rates should stay the same for every customer, if you charge one customer one thing and then charge another a different amount for the same job this will put doubt in their mind.

ex. Customer calls wants the patio pressure washed the patio is of normal dirtiness and it is 10x15 = 150 sq ft you charge this customer $1.00 per sq ft. equaling $150.00 they tell a neighbor and their deck is of equal dirtiness and it is 8x20 = 160 sq ft you charge them $1.50 per sq ft. equaling $240.00 this customer is not going to be happy and probly wont call you back nor will the first customer because you have put doubt into their minds of is this guy for real is he just throwing #'s out there or what.

Don't ever leave room for doubt or a question of your integrity as a business owner/operater. YOU WILL lose if you do.

Hope this helps and I really want to hear some feedback on this one.

Thanks Tim



Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 12-08-2007, 05:42 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,118
Rep Power: 10
Steve has disabled reputation
Default

Lawn care business tipsLawn Care Business Book
Hi Tim,

Thank you so much for that post. Can you explain what a wind row is?
__________________
- 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.
Reply With Quote
  #3  
Old 12-08-2007, 06:57 PM
realhuntin
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by [b
Quote[/b] (Team Gopher @ Dec. 08 2007,6:42)]Hi Tim,

Thank you so much for that post. Can you explain what a wind row is?
A WIND ROW is when you blow all grass clipping or leafs into a long narrow row, insted of one or to big piles, this makes it easier to clean up and is faster alaround
Reply With Quote
  #4  
Old 12-08-2007, 07:39 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,118
Rep Power: 10
Steve has disabled reputation
Default

Oh thank you!

I did a search for wind row and found this image.

__________________
- 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.
Reply With Quote
  #5  
Old 12-09-2007, 07:18 AM
StartALawnCareBusiness's Avatar
StartALawnCareBusiness StartALawnCareBusiness is offline
Keith
 
Join Date: May 2007
Posts: 731
Rep Power: 0
StartALawnCareBusiness is on a distinguished road
Default

From experience I have with new LCO's, knowing how to price is just a huge issue.

I think the very first issue you have to confront is cost of doing business.

Can you imagine a successful mfg'ing plant manager shrugging his shoulders when asked what his actual marginal cost is for each additional unit?

Before I got into the lawn care business, I was an accountant with a corrugated package manufacturing company. We knew exactly how much paper and glue was required for each and every box made. We even practically knew how much electricity was needed to make each box too. Nothing was overlooked. A degree in finance didn't hurt with the detailed analysis.

Tim, you're talking a very structured approach to bidding jobs and I cannot agree more. But, I want to ask you this. How many guys do you think bid a $40 grass cutting job simply because their friends said that's how much to charge?

I think most everyone of us did that when we first started. We had little idea of costs and little idea of what the market would actually bear.

Here's an example of what happens though. The going rate of residential lawns is $40 per cut in a certain area of the country. But, someone gets a late start or is in need of new customers. So, that guy drops his price and starts bidding at $30. Then someone else hears how this guy is doing 10 yards per day and bring home $300 per day. This third guy decides he can do a couple yards each day after work or school. So, he loads up a barely functioning push lawn mower into his truck and starts doing lawns for $20 or $25 for extra money.

Over the course of a year or two, lowballing drops the price out of the market and no one makes money. The guy charging $20 gives up and just continues with his day job. The guy charging $30 has an equipment breakdown that he can't afford to fix and has to drop out. The only one left to pick up the pieces is the professional who has a steady structure of well paying customers. Prices begin to rise and the whole cycle starts over again. I wonder about the length of the cycle. 5 years?

Your example of $1/sq.ft. for pressure washing is excellent. If the going rate is $1, that is only one half of the equation. A company still has to know its costs. If a company has a brand new high pressure, high flow Hotsy warm water pressure washer in addition to a 250 gallon tank carrying filtered water in an enclosed dual axle trailer and a brand new $45grand F-350 to haul it all, doing deck work might not be the best use of his resources. His costs alone might approach $1/ft^2. Somewhere there is an equilibrium point. Instead of doing deck work, his equipment might be better suited for industial cleaning and paint stripping.

That's why nobody can really ever tell anyone else exactly how much they should bid on a job. One guy might be able to make a great living at $1/sq.ft. while another guy might go broke.

All this illustrates the need for a business plan long before you get heavy into the business. You have to know what the going rate per hour is and what your costs per hour are. You have to know what types of customers to target and what equipment you will need to service those customers once you get them.

I don't think a business plan solves all questions by any means. But, it gives a good basis to begin with and it can always be adjusted later.

You started a good discussion, Tim.
Thanks for the ice breaker into the subject.

Keith
__________________
Start a profitable lawn care business.
Reply With Quote
  #6  
Old 12-09-2007, 07:50 AM
realhuntin
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by [b
Quote[/b] (StartALawnCareBusiness @ Dec. 09 2007,8:18)]*I wonder about the length of the cycle. *5 years?

Your example of $1/sq.ft. for pressure washing is excellent. *If the going rate is $1, that is only one half of the equation. *A company still has to know its costs. *If a company has a brand new high pressure, high flow Hotsy warm water pressure washer in addition to a 250 gallon tank carrying filtered water in an enclosed dual axle trailer and a brand new $45grand F-350 to haul it all, doing deck work might not be the best use of his resources. *His costs alone might approach $1/ft^2. *Somewhere there is an equilibrium point. *Instead of doing deck work, his equipment might be better suited for industial cleaning and paint stripping.

That's why nobody can really ever tell anyone else exactly how much they should bid on a job. *One guy might be able to make a great living at $1/sq.ft. while another guy might go broke.

All this illustrates the need for a business plan long before you get heavy into the business. *You have to know what the going rate per hour is and what your costs per hour are. *You have to know what types of customers to target and what equipment you will need to service those customers once you get them.

I don't think a business plan solves all questions by any means. *But, it gives a good basis to begin with and it can always be adjusted later.

You started a good discussion, Tim. *
Thanks for the ice breaker into the subject.

Keith
Your probly closer than you relise, for my area I think we are there, I just stated this past April we had the worste drought in over 20 years, (what was I thinking LOL). We stayed very busy all *season, I even had 5 phone calls from other guys wanting me to buy their equipment (because they had big loans @ the bank on it) and put them to work. So I think this past season is going to weed out the low ballers.

As far as the pressure washing I truly understand what your saying and I can't agree with you more on it. My trade buddy had one of the rigs you speek of and he sold it a few years back because it cost him more to own it than it made. I was just speeking of small patio's and deck's may be I wasn't clear on that part, my apologize for that.

But it seems we both agree on SETTING prices before you offer a service to a customer. What I was tring to show is you need good pricing and rates before you can bid jobs, you can't go out there and just thow a # in the air and expect to make it.

Thanks for the insight Keith



Reply With Quote
  #7  
Old 12-09-2007, 07:01 PM
Little's's Avatar
Little's Little's is offline
Brandon
 
Join Date: Jun 2007
Location: Shasta Lake CA.
Posts: 814
Rep Power: 8
Little's is on a distinguished road
Default

It would be nice if all pricing was cut and dry like that, but there are too many factors involved to charge everyone the same rates. I charge based on what I think it should cost. It has always worked up until now, so I will stick with the way I have been doing it. I appreciate your info and idea.
__________________
Northern California
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Billing methods
jcurr33
Yesterday 01:33 PM
Today 09:51 AM
by chris2500hd
1 48
I lost a long term...
Sprinkler Buddy
09-04-2011 02:24 PM
Yesterday 09:17 PM
by SGL1
14 3,361
Flag or no flag
Matther777
03-24-2015 02:41 PM
Yesterday 05:50 PM
by Sprinkler Buddy
9 283
Office Administration...
Girlfriend
Yesterday 05:40 PM
Yesterday 05:40 PM
by Girlfriend
0 39
introducing myself
chris2500hd
03-24-2015 11:16 AM
Yesterday 01:22 PM
by chris2500hd
7 175
Commercial Jobs
CurbAppeal1
03-25-2015 04:22 PM
Yesterday 12:44 PM
by Steve
4 127
Mower vs lot size advice
jcurr33
03-25-2015 09:29 PM
Yesterday 04:49 AM
by avetslawncare
2 105
Finally got a warehouse
avetslawncare
03-12-2015 07:52 PM
03-25-2015 08:57 PM
by SGL1
9 447
Is this tree beyond help?
SGL1
03-22-2015 05:35 PM
03-25-2015 08:55 PM
by SGL1
14 457
hoa bid need help
bigdaveha12
03-24-2015 08:29 PM
03-25-2015 08:04 PM
by avetslawncare
4 165
Opinions on truck wrap
Trupro
02-28-2015 03:21 PM
03-25-2015 07:54 PM
by Trupro
33 1,488
How do you get...
ESREVER
03-25-2015 01:30 PM
03-25-2015 07:20 PM
by avetslawncare
6 137
Bid for large home...
lxarth
03-22-2015 11:06 AM
03-25-2015 03:44 PM
by jrs.landscaping
7 251
Employee job training...
brookline
12-15-2014 07:15 PM
03-25-2015 03:26 PM
by ESREVER
25 2,308
The New Wave!!!! Read...
Jamesw86
03-22-2015 08:33 PM
03-25-2015 02:50 PM
by Steve
10 272
grass in the gas tank
robkattankate
03-23-2015 04:37 PM
03-25-2015 02:36 PM
by Steve
5 159
Helping others
hansenslawncare
09-15-2011 08:50 PM
03-25-2015 02:33 PM
by Steve
11 2,636
DOT Number
acrajchel
03-20-2015 05:56 PM
03-25-2015 02:28 PM
by Steve
7 282
Michelin x tweel.
apmAkron
03-23-2015 04:22 PM
03-24-2015 12:40 PM
by Steve
3 110
Trepidation about...
michellemarvin
03-23-2015 07:46 PM
03-24-2015 11:47 AM
by Steve
1 106
spike aerator???
Bradcook21
03-21-2015 01:55 PM
03-24-2015 10:32 AM
by acrajchel
4 182
Hello from Maryland
michellemarvin
03-23-2015 12:44 PM
03-23-2015 07:33 PM
by michellemarvin
2 108
hello from south GA.
CCandALawnCare
03-23-2015 03:46 AM
03-23-2015 07:06 PM
by CCandALawnCare
2 103
Say Hello !!!
Steve
03-19-2007 11:18 AM
03-23-2015 06:14 PM
by jethro
1,218 379,898
Is anyone doing mosquito...
BWild
01-27-2015 11:30 AM
03-23-2015 12:28 PM
by Steve
9 814
35,000 Eddm
greenscaper123
03-18-2015 12:51 PM
03-23-2015 11:48 AM
by BLC7
18 449
Need some advice about...
Wolf4dk
03-22-2015 10:48 PM
03-22-2015 10:48 PM
by Wolf4dk
0 163
Should i take on this...
christw
03-17-2013 01:23 PM
03-22-2015 09:02 PM
by ExtremeLawncareServices
36 7,540
mower stalls when...
boog
03-19-2015 08:20 AM
03-21-2015 08:13 PM
by Wolf4dk
7 241
Weed and Feed
robkattankate
03-19-2015 09:00 PM
03-21-2015 01:53 PM
by Bradcook21
4 280
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
03-20-2015 10:00 PM
by ExtremeLawncareServices
32 3,578
Hello Emily Reyes from...
Webster14829
03-20-2015 11:23 AM
03-20-2015 03:36 PM
by Steve
2 160
Finally going to give it...
jcurr33
03-12-2015 08:09 PM
03-20-2015 03:31 PM
by Steve
10 524
Weed id?
SGL1
03-17-2015 08:20 PM
03-20-2015 02:37 PM
by Steve
6 255
Mobile small engine...
luckylogger
03-15-2015 02:05 PM
03-20-2015 06:17 AM
by jrs.landscaping
15 449
Brad Cook 21
SC93
03-16-2015 10:40 PM
03-19-2015 09:04 PM
by Bradcook21
4 333
honest opinion please
uppercut
02-17-2015 01:30 AM
03-18-2015 02:55 PM
by Steve
15 1,285
Repair or replace the...
lxarth
12-17-2014 04:07 PM
03-18-2015 02:49 PM
by Just for Cuts
21 2,005
new to the site
bigdaveha12
03-17-2015 09:13 PM
03-18-2015 02:33 PM
by Steve
1 189
Small dovetail truck...
ExtremeLawncareServices
03-04-2015 06:47 PM
03-17-2015 10:14 PM
by ExtremeLawncareServices
17 836
New Site Hows it look
Infinitelawn
03-16-2015 10:32 AM
03-17-2015 08:15 PM
by SGL1
3 256
mulch questions
Bradcook21
03-08-2015 08:37 AM
03-17-2015 07:00 PM
by Bradcook21
23 950
Scag hydro w/b frame...
Just for Cuts
03-11-2015 03:32 PM
03-17-2015 06:37 PM
by lxarth
11 474
Buy new or used?
lxarth
12-26-2014 09:50 PM
03-17-2015 06:11 PM
by lxarth
14 1,686
New to 2015
Infinitelawn
03-16-2015 08:29 AM
03-17-2015 11:47 AM
by Steve
4 270
Pulling trailer was...
SGL1
03-07-2015 07:14 PM
03-17-2015 08:11 AM
by SGL1
30 1,108
Diesel conversion?
Just for Cuts
03-02-2015 09:59 AM
03-16-2015 03:26 PM
by Just for Cuts
10 612
trimmer racks.
apmAkron
03-12-2015 09:07 AM
03-16-2015 03:17 PM
by Steve
4 336
Ferris FW35 questions
Chilehead
03-10-2015 08:31 PM
03-16-2015 03:11 PM
by Steve
4 334
new equipment
apmAkron
03-12-2015 09:12 AM
03-16-2015 03:07 PM
by Steve
7 351
» Popular Tags
aerocore apartment complex auger bark billy goat brushcutter blades bush collections deliquentaccounts design edging employee problems equipment rental ferris flyers foreman free advertising grass growing a lawn care business hills hiring husqvarna introduction john deere quik trac landscape landscape services landscaping training lawn lawn care lawn care business seo lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo lawn mowing marketing marketing secrets mr dave mulch new business past due per hour charge per hour service pricing profit on employee pto push versus ride running a business secrets to landscaping sell the vision seo shell small engine repair square foot steep lawns sulky theft toro grand stand trailer tree trimmer rack truck new used landscape up sell employee walk behind web design website website design winterization won't return
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 10:07 AM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 10:07 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy