View Full Version : A little math help please
06-03-2007, 11:55 PM
As I have stated in a couple of recent posts, I am new in the business (I know, there seems to be a new one of us on the board everyday, haha) and I am currently in the process of getting licensed in TN and have a lot to learn.
I need a little help calculating what my costs would be for an application per 1000 sq. ft.. I will try to keep this as brief as possible. I will use a Simazine application as an example. The 2.5 gal jug costs $68. According to the label, the jug will cover 5 acres and 2 qts will cover 1 acre. It also says use at least 15 gal of water with the 2 qts. After all of this finally to the question. How much will it cost me to apply per 1000 sq. ft.? I came up with about 32 cents per 1000 sq ft. Is this right or am I just a waterhead?
Also, around here a average pricing scheme for a lawn program is $17.50 per 1000 sq ft divided by 7 applications. So, a half acre lot would be $381.15 or $55 per application. What are your opinions?
I apologize for the lengthy post and obvious rookie question.
Thanks for your help.
06-04-2007, 12:15 AM
5 acres = 217,800 sq ft....$68/217.8 = $.31/M so you are pretty close.
A half acre is 22,000 sq ft so 22 x $.31 = $6.87 cost.
I really cannot speak to the local pricing in TN but the prices you have would be considered too low for around here.
The way Chemical prices are changing everyday I find it is much easier and faster to set an Excel spread sheet to find the cost per thousand of each Product I use from Fert to Pesticide. Each time the price of a product changes, I only need to enter the current price and Excel spits out my cost per thousand, and Per Acre of both high and low rate that I might use. If Excel is set up correctly the cost factors will be correct every time. You must of course set each product up separately because of the rate you apply them.
I am strong in Math, but the first time I did this I didn't know the Excel program. A buddy who is a retired Bank Auditor used Excel quite a bit and taught me now to set up and use Excel. I say this because there is no shame in asking for help and you might want to get someone to help you set this up. The fact is once an Excel spread sheet is set up It can be E mailed to you and you can start using it right away. You must have a Excel program to run an Excel program E mailed to you. No I am not offering to do this.
I will agree with Tremor about your prices being too low. I see to many in this industry try and price by competitive pricing. If TG/CL charges $ 55.00 a round then they try and charge $ 55.00 a round and soon go out of business. COST PLUS is the only way to price and make a profit. Only when you know your total cost of Product, Equipment and Over head can you price a job correctly to make a profit from your labor. If your price is too high and you can't sell in your market, then you are in the wrong business.
06-04-2007, 05:31 PM
I find that using a factor of 1.5 x your cost of the product and a base of $65 an hour works quite well. You have to set a min to enter on to a property and that is based on your overhead $, insurance just for lisc. is not cheap and neither are labor and everything else... Fuel is a big one we have had to add to our costs. Finding out your hour cost of doing buss will give a good target $ and think of customers who live next to each other, of which you can do several in an hours time. There are alot of things to think of as you can see. To see what the local market is doing, have a company come out to your house and give you quote for your lawn (don't let on what you do for a living), let someone else give you the fair market $ for your economic zone. Don't try to base what others do around the country it won't work for you.
06-05-2007, 10:05 AM
Figuring rates is all part of obtaining a license at least in this state. You should be able to figure this out on your own. Work the problem backwards to check your math. How many qts in 2.5 gallons? 10. Divide 10 into the cost of product. 6.80 per qt. 13.60 for 2 qts. 13.60 divided into 22m for a 1/2 acre is about 62 cents per 1000 or M. Backwards multiply 62 cents x 22M = 13.64. Your price per 1/2 is very low.
vBulletin® v3.8.6, Copyright ©2000-2016, Jelsoft Enterprises Ltd.