PDA

View Full Version : pricing help


crbapel
02-22-2004, 09:56 AM
just startingout and i dont want to be a low baller i want to establish prices that are competitive but profitable so any help would be appreciated 2-15g crepes /5-3g stokes holly /6-3gal soft touch holly /8- 3g sun glow azaleas /3-6ft nellie r /4 5g ligustrum recurifolium/3 5g rhododendron roseum elegans/2 5g sasanquas/4 7gal camellia sargent red/6 pallets bermuda 419 2700'2/100 bales pinesraw/site is completely preped already thanks

D Felix
02-22-2004, 10:10 AM
No one here will be able to tell you what to charge. I could say that you should charge $1000 and you should make $750 profit.

The next person could say you should charge $25000 and you should expect only to make $2 profit.

See where I'm going?

If you are just starting out, chances are your overhead isn't as high as some here. That plays into profit. Significantly.

Here's how I would price it.

Find out your cost to purchase each individual material. Double what you would pay for it. That is what the customer pays. That is your markup for the plant.

Then figure out how long it will take to install the job. We use a standardized planting time sheet, but you may have completely different soils than we have and can plant much faster. You then add up how long it will take to install the job. Take that number times your hourly rate. That's what you charge for labor.

Figure out what equipment you will need. You will probably need to rent equipment, since you are just starting. If you own any equipment you will use, charge for it's use. You still have to pay for that equipment whether you own it or rent it.

Total everything up. That is the total price for the job.

If you don't get the job, remember that the guy who is the low bidder every time will NOT be in business very long.

HTH.


Dan

crbapel
02-22-2004, 01:59 PM
thank you for the reply,i have read alot of different scenerios on this site where other people have said what they would charge in dollars i am not asking someone to price a job for me i have already completed this job and made a good profit i merely wanted to see what some others might price it remembering the site is already preped the only variable is digging holes for mostly 5 g plants would still appreciate more response

launboy
02-22-2004, 06:12 PM
so out of curiosity you double the plant cost for markup and charge the custmer tha price.. i get it but when someone for instance wants a Japanesse maple that costs 250.oo you would charge 500.00 for it

crbapel
02-22-2004, 06:36 PM
i have not been putting a specific markup across the board on materials as of yet i know d felix spoke of marking up double plant cost so far i have been doing the other scenerio that d felix spoke of and that is determine how much profit i need to make and then charge that price so far this has worked fine i mean i do figure out cost of all materials ,equip rental ,labor time ,etc and put and put a dollar amount on it ,i was just wanted to know what others mite charge on this job. not how much i should charge for this job

D Felix
02-23-2004, 08:35 PM
We have just started to check our profit comparing it to overhead and direct job costs. That's something we picked up at the conferance in January, and are just now starting to do, now that we know how to do it.

And, yes, if the Jap. Maple cost $250, we would probably charge close to $500 for it. Reason? If for some reason the tree should die, the replacement should cost about the same as the original. We tend to cover both markup and replacement costs with our doubling of our cost for plant material.

In our area though, it is extremely rare that someone has the dough to shell out for that type of tree. Our county has a population of ~35k, so we deal with a VERY small market!

Sorry if this hasn't answered your question, curbappeal!


Dan