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View Full Version : don't want to lowball


ohmiller
04-04-2006, 04:17 PM
I am trying to expand the lawn care side of my business. Currently I use a 22" walk behind and a husqvarna 326L string trimmer. What is a good hr rate for that equipment? Also if I purchased a rider how much more could I charge. I live in Mendocino County in Northern California Zone 17. I understand how important it is to charge standard industry rates (or more) rather then to bring them down by lowballing. Any help would be appreciated very much.

wski4fun
04-04-2006, 04:45 PM
if you're bring in 150-180 a day I would say you're doing alright. I have the big equipment and by myself figure on 320-350 a day for mowing. Otherwise I charge 30/hr. I have most of the big equipment for maint. so I need to charge atleast that. Either way a job for 250 is a job for 250. I might be there for 1/2 a day with the equip. and you may be there for the whole day with a rake and barrel. Does that help at all?

GreenUtah
04-04-2006, 04:45 PM
regardless of where anyone here would like to see you set prices, you need to gauge your local market for the going rate with the services you plan on offering and your profit margin goals. The machines that you have are irrelevent without knowing how they will be used. This includes travel time, sales, insurance and fuel, size of property, etc. etc., all included in your price. If you are spread all over the county and the average lawn is 1500 sq. ft. and you have only 5 customers to spread your fixed costs over, your pricing is going to be much different to make a profit than the guy mowing 30 lawns in one neighborhood. Understand? As far as purchasing a rider, no one is going to pay you more to use one, the only advantage you will gain is if it will enable you to cut labor on properties that you currently have or can sell.

ohmiller
04-05-2006, 02:17 AM
regardless of where anyone here would like to see you set prices, you need to gauge your local market for the going rate with the services you plan on offering and your profit margin goals. The machines that you have are irrelevent without knowing how they will be used. This includes travel time, sales, insurance and fuel, size of property, etc. etc., all included in your price. If you are spread all over the county and the average lawn is 1500 sq. ft. and you have only 5 customers to spread your fixed costs over, your pricing is going to be much different to make a profit than the guy mowing 30 lawns in one neighborhood. Understand? As far as purchasing a rider, no one is going to pay you more to use one, the only advantage you will gain is if it will enable you to cut labor on properties that you currently have or can sell.

Thank you for the advice Green Utah and Wski4fun this stuff is better then any books. Knowledge and understanding makes life less stressful

wski4fun
04-05-2006, 02:24 AM
If you can make the same amount of money the compitition does and charge less then it is not lowballing. It's called being smart and fair. In my market I can charge 5 bucks less mowing then most co. becuase my cost are that much lower and I do the same or better job.