Application Price

[Hopper1124]

I am thinking of getting into the lawn fertilization biz so I had a few companies give me an esitmate on my lawn. 2 companies were close and the other was real low and it is a larger name company. Any Ideas

Lawn area 8,100 sq ft

Trugreen 7 apps $49.00

Scotts 6 apps $ 52.00
Scotts 4 apps $ 44.00

Green CO. 7 apps $ 47.00

Showcase 5 apps $ 42.00

Davey Tree Service $ 36.50 He suggested only 3 Apps maybe 4 if needed.

What do you guys think? How do they come up with the pricing

Thanks

[greenman]

Are those prices for all applications? or per app?

Per app would be way too high, but there is no way that I could do that lawn for those prices.

[Randy Scott]

Those prices are right in line with our market here. Maybe a couple bucks high with those on the higher end. $42 to $46 and a good sales pitch would get that lawn (per app.). We sell 5 app. programs primarily, although the customer will get what they want and we just have to explain the pro's and con's of 3 versus 5 apps. etc.

Pricing? You arrive at with your costs and profit margin needed.

[boohoo]

Are we comparing apples to apples? ie: some Co's include grub apps. and or surface insect apps as part of there service while some do not. Could you possibly give us a breakdown of what each co planned on doing for the season at that app. price.
We couldnt possibly know but I use it as a sales tool........ One Co. might be using 1lb N / 1000 while another is using 1/2 lb so technically the lower price could be the most profitable to the Co. using the 1/2lb rate. Unfortunately Mrs. Jones is buying a service, not a commodity so she could be getting 1/4 lb for all she knows. but all she sees is the price and or the flashy advertising, fitted out trucks etc.

[Tony Harrell]

What are your chemical costs? I know some of the pest companies try to stay in the 3-5% range.

[ant]

hopper good job in looking into the lawn programs...

call each one up on the phone and ask them to ''walk you through each applications ''
and then compair.

one company may spot spray weeds each app.
one may soil test b/f they start the program.
one may be a owner operator business .


anthony

[philk17088]

Hopper,
I wouldn't put any faith in their prices. A lot of times they will bump up the per app price the next year or telemarket the customer to death to buy add on services that have a higher profit margin. Do your cost analysis and DO NOT BE TEMPTED TO MATCH THEM! I couldn't afford to do that size lawn for less than $60.00 per app. I also charge more per app if the customer takes less than the five app plan. Doing a complete and thorough service would take 20 minutes at least, add on travel time to next stop, you got a 1/2 hr of your time involved . The cost of the material,etc,etc,. I'm not willing to work that cheap.
:eek:

[greenngrow]

Hey I need to go up on my application rate !!!!!.

Unlike most of the people on this site. This my primairy business.
I don't mow enough to wad a shotgun. But I do have several application accounts. I presently charge 3.00 per K with a 35.00 min.

Ihave been at this price for 6 years now. I really need to go up on my prices, but hey I am making good $$$$$. NO Need to take advantage of a good situation.

Do what the market can stand. And let it rip. JUST TO IT LEGAL !!!!

[Ric]

excuse me But. What our these companies putting down??? If I were the home owner I would ask "what am I getting for my money."

Apples to Apples, Dust to Dust.

Urea is cheap cheap cheap. what about minors, P5O, K2O. etc, etc.

[Tony Harrell]

I thought those prices were cheap compared to some I've heard about. That's why I asked about your % of product or, cost of goods. That seems to be the basis for a pricing structure. One member emailed me privately with some info but, I can't read the file. (I'll call you later).

[HBFOXJr]

Originally posted by greenngrow
Hey I need to go up on my application rate !!!!!.

Unlike most of the people on this site. This my primairy business.
I don't mow enough to wad a shotgun. But I do have several application accounts. I presently charge 3.00 per K with a 35.00 min.

The $3/k for a basic 6 step fert program including weeds, pre-emergent and 1 surface feeding insect control and a light maint level lime can be done. Problem is the $35 minimum. Thats almost 12k @$3 and that is a money loser. If it was the same $35 for 5k then $3/k after that you'd be OK.

Also I only round to the next 500 ft. Don't know how others do it but an 8,100 ft lawn is 8,500 here. Also when measuring I don't deduct for little thing in the spread pattern like sidewalks, small beds etc. Larger sheds, pools, patios, drives etc alwasy get deducted. I also have minimum of one spreader pass for all width measurements. It might be a 5 ft wide strip on a little side somewhere but you spreader doesn't know or care.

The reason for these measurements is calibration accuracy. My application poundage or gallons when done this way are right on target with predictions. Subsequently, results are vey good and predictable.

[bobbygedd]

an 8000 k lawn cost about $800 for the program, at our prices

[HBFOXJr]

Please share with us what $800 buys for an 8,000 sq ft lawn.

[bobbygedd]

$12 per thousand x 8 apps. =$96 per app(though we dont charge per app, we charge for the program) #1=pre-em +fert. #2, 3, and 4=pre em, weed cont, fert. #5=grub/insect control. #6=fert(done at the same time as #5). # 7 = winterizer fert. # 8=lime. total program price = $768 + tax

[Runner]

That comes to $261.36 for a 1/2 acre (standard subdivision) lot. I would have a HARD time selling that! A blanket of grub control wouldn't even cost that.

[Kent Lawns]

The cost of doing business is greater in NJ also, particularly NW Jersey.

- Still seems like good $.

[1grnlwn]

Location,Location,Location, It seams to make a pretty big difference. You don't have to match your competition but you had better know what they are doing. Good job. We would be in the $36 range. About a 10 min job.

Mark