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turfmgr
08-28-2005, 11:07 PM
just wondering what everyone around the country is charging per square foot on fertilization and weed kill apps. then how much extra you charge per sq. ft. for fungicides, etc.

Ric
08-29-2005, 12:30 PM
just wondering what everyone around the country is charging per square foot on fertilization and weed kill apps. then how much extra you charge per sq. ft. for fungicides, etc.


Turfmgr

I believe everyones costs are not going to be the same, because their areas requirements are different. Therefore Price per thousands are also different.

Doing full service Fert & Squirt, I figure my Chemical cost at 28% of price charged. Other expenses account for approx 22% and I try and get a 50% gross profit less labor. Labor & Burden will run 25 to 30% and net profit is close to 20%. Add in advertising and you can be below 5% profit level as a new business that has advertising expense.

Straight Ant kill or insecticide for Fleas and Ticks etc, Chemical cost are more like 3%. Labor costs are also lower because of mixing and application time. Gross profit margins is much higher, but Price per Thousand is lower also.

I suggest you do a spread sheet in excel and Find the cost of each chemical applied. This can be done in the cells so as chem prices change, it needs only entered that price to give a cost per thousand.

Any time some one asks, What do I charge??, My answer is What is your COST.

olderthandirt
08-29-2005, 01:08 PM
Any time some one asks, What do I charge??, My answer is What is your COST.
Simple enough and great answwer Ric, and to the above I would just add figure in the % of profit that you want to make and add it to your cost and you have your answer.

Ric
08-29-2005, 03:15 PM
Simple enough and great answwer Ric, and to the above I would just add figure in the % of profit that you want to make and add it to your cost and you have your answer.


Mac

Simple Enough! Yet so hard to understand by so many people.

We are in a Business and Business is Business. Why is it that accounting and bookkeeping type businessmen can make it in any business?? Simple, They know their numbers. There are many types of Numbers a successful businessman has to Know. Marketing and advertising is only one of the Important Numbers to understand. Estimate of projected costs when starting a business is the main number to know. Once up and running controlling and knowing the Cost of Doing Business is a continual job. By knowing your Cost of doing business you will NEVER lose a bid again. You might not get that bid, But you won't lose because of it.

One time I looked at a $ 98,000 a year mowing job to bid on. Sounded great until I did the math. At $ 10.50 a acre, I couldn't even come close to my Costs. I didn't lose that bid, I just didn't bid it. BTW I watched about 5 people go broke on that deal over the years. The current guy is still in business after three years of doing it. He must have his numbers together. BTW it was a Government contract to the lowest bidder. All records are public.