PDA

View Full Version : Another Pricing Thread


lawntennis
12-20-2008, 09:30 AM
I have a fert business with about 600 clients. I am going to start mowing this year and had a pricing question. I would like to give all of my customers an APPROXIMATE bid based on their per app price when I send out the prepay. I know their are many variables for mowing but was wondering if any of you know an approximate percentage their mowing price would be to their fert price. I don't want a large route so I don't want to come in to low.

ICT Bill
12-20-2008, 10:03 AM
Square feet + Fertilizer cost + Labor + over head (insurance, fuel, maintenance, etc) = cost.

Cost + Profit = cost for entire route

cost for entire route/ sq ft of customers = average cost per sq ft

I know their are many variables for mowing but was wondering if any of you know an approximate percentage their mowing price would be to their fert price
no such thing, it has to be based on cost. you may have 600 mow & blow customers and only 200 fert customers, there is no way to do the math

You must base it on cost and you must put a profit figure in there in order to stay in business

lawntennis
12-20-2008, 10:58 AM
We've been in business for quite awhile so I understand how to stay in business but I still bid my fert jobs with a simple formula. Since I have never done any mowing it is difficult to know my costs. Anyone?

ICT Bill
12-20-2008, 12:31 PM
We've been in business for quite awhile so I understand how to stay in business but I still bid my fert jobs with a simple formula. Since I have never done any mowing it is difficult to know my costs. Anyone?

Apologies, I thought it was the other way around

ted putnam
12-20-2008, 05:01 PM
Mow guys around here try to make 40-50 bucks an hour. with usually a minimum of 35-40 bucks per stop. Better/faster equip means you make more money. Better/faster equipment costs more money...many variables. Where material cost/k is the main concern in spraying lawns, Time will be the major factor in mowing (at least that's my thought). You need to be able to figure approx times by looking at a lawn... I do not mow nor do I want the hassle of crews ,equipment upkeep,etc... but If I were going to, this would be how I would do it. I probably didn't help you much.

LIBERTYLANDSCAPING
12-20-2008, 10:01 PM
We've been in business for quite awhile so I understand how to stay in business but I still bid my fert jobs with a simple formula. Since I have never done any mowing it is difficult to know my costs. Anyone?

It's going to be a little tough for you to bid mowing. There is a learning curve:laugh: It definitely takes some experience around commercial mowing to be able to put a definite time on how long a weekly mow will take. As Ted says, larger & quicker equipment=better production rate, but cost more. It will come down to the equipment that YOU are going to use. Mowing equipment & all the ancillary crap that goes with it can cost you a fortune!

LIBERTYLANDSCAPING
12-20-2008, 10:03 PM
It's going to be a little tough for you to bid mowing. There is a learning curve:laugh: It definitely takes some experience around commercial mowing to be able to put a definite time on how long a weekly mow will take. As Ted says, larger & quicker equipment=better production rate, but cost more. It will come down to the equipment that YOU are going to use. Mowing equipment & all the ancillary crap that goes with it can cost you a fortune!

Oh yea, Mowing is the lead in "drug" that gets you in the door for all the high profit landscape maint. work like mulch, bush trimming, spring & fall cleanups, leaf haulaway, annual color, etc.:clapping:

lawntennis
12-21-2008, 10:59 AM
Thanks for the replies. I want to concentrate on residential at first. I figure if I mess up on a bid I can't lose too much. I've purchased a 36 inch quick dually and a 21 in honda. Anyone have any idea of time per 10,000 square feet with similar equipment. I know if varies depending on garden beds, edging, etc but I have no idea. You don't want me coming in too low.

tlg
12-21-2008, 08:40 PM
You need to know all your cost in order to price things right. We all know the normal cost. Labor, insurance, fuel, size, overhead and on and on. The other factors you must include are job difficulty, location, future business potential and collect-ability. Obviously a job with a lot of obstructions would cost more to do than a lawn with none ( speed is of the essence of profitability), several jobs located together or close by are better than one 20 miles away, a job with future business potential could be a high visibility residential or commercial property that being see on could generate other inquires to your service. Collect -ability or terms of the account should always be part of your pricing... do you have to wait for your money... 30 days, 60, 90.These can all be variables in any pricing strategy Not to get off topic but your lawn fertilizing biz generally has better margins than mowing. What compelled you to add mowing to your service?

RLC12065
12-21-2008, 11:09 PM
i mow 130 lawns a week and fert about 250 properties. there is no corrilation between mowing and fertilizing. mowing depends alot on how much trimming needs to be done. you base your price on how long it takes to mow, trim and blow a house. we average about $45 per man hour mowing lawn including all travel and prep time. we mow at a $54 per man hour if you take out travel time. 2 guys, 2 50" ztr's. you stated you bought a 36" and a 21" mower to use. unless you have very small properties its gonna take a while to mow each lawn reducing the amount of money you can make. it might take 15 minutes for 2 guys to mow with 2 50"ztr's and take 30 minutes for 2 guys to mow the same property with a 36" and 21" mowers. the amount charged is the same.

RigglePLC
12-22-2008, 11:19 AM
Tennis. Tennis. Tennis. Mowing has a lot less profit potential. So--why? More work. More expensive equipment. Less appreciated. Low-baller competition. Be ready to make less per hour for more work. You will love it when you start to rake leaves this fall.

DUSTYCEDAR
12-22-2008, 11:59 AM
good luck with mowing

lawntennis
12-22-2008, 03:01 PM
The reason for mowing is a strange one. I got a new employee that worked out very well for me and he loves to mow. I know from posts I've seen on here for years that the profit is not as high but would like to keep him around and my other employee would like more hours.

tlg
12-22-2008, 03:11 PM
The reason for mowing is a strange one. I got a new employee that worked out very well for me and he loves to mow. I know from posts I've seen on here for years that the profit is not as high but would like to keep him around and my other employee would like more hours.

If it works for you then by all means go for it. The mowing contracts can also lead to bids on more fertilization work. So it could be a real winner for you even though the margins on mowing are not as good. As long as they make money for you that's all that matters.