Originally Posted by BROWNS LAWN CARE
ok, well maybe i am misunderstanding how the system works.
my understanding of the american economic system is that it is greedy and everyone involved in touching a product or service marks up the price....
yes there is a mark up. But in this industry, particularly fertilizer it is not a set percentage. Instead most companies have a sliding scale they charge by the square foot or 1000 sq feet. The way my sliding scale works is that I have a minimum price for 3k sq feet, then there is an additional charge per 1k sq ft. Once the lawn hits 20k sq feet that additional charge becomes a little smaller. At 40k the additional charge becomes a little bit smaller again.
The reason why a general markup does not work is because each round of fertilizer is going to cost different, fert w pre-m is a different cost than fert w merit, fall fert is another price, winterizer is another, spraying weeds do=uring the visit or a service call is all figured in to the price as well. Most customers do not want to pay a different charge each visit but would rather pay a set price each time, to do this you simply add up all of the projected costs for the season and devide by the number of billing cycles to get an average.