View Single Post
  #5  
Old 02-23-2001, 03:30 AM
John Allin John Allin is offline
LawnSite Bronze Member
 
Join Date: Sep 2000
Location: Erie, PA
Posts: 1,489
At the risk of offending someone..... pricing your services "at the going rate" will (in the long run) probably put you out of business. While this is an opinion on my part, the large contractors associated with ALCA and SIMA will tell you that they price their work based upon calculations done to include all expenses (direct costs, G&A, and general overhead recovery) plus the viable profit that they have determined they need to survive. Then they go sell THAT as the rate they need.

We find, and I tell our people, that for us to maintain a 5000 sq. ft. property for less than $xxxxx will keep it from being profitable - even though the local trunk slammers can, and will, cut that lawn for $20 a pop. I am also of the opinion that if you are making more than 6 stops a day with any one crew (maintenance) you are in the trucking business. It costs more to load and unload and travel than it does to perform the actual service. I would venture to guess that the vast majority of your "competition" doesn't realize this. Smaller contractors have no overhead recovery program in place and don't really know what it costs them to do business.

I seriously doubt that you'll be comparing 'apples to apples' if you try to guage your own business finanicals based upon "competitive pricing".....

Reply With Quote
 
Page generated in 0.04357 seconds with 7 queries