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Old 10-08-2012, 06:02 PM
32vld 32vld is offline
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Join Date: Feb 2011
Location: LI NY
Posts: 3,287
Quote:
Originally Posted by tonygreek View Post
Based on this, you would potentially pay an employee $15/hour to do a $30/hour mowing?

You really need to understand all of the costs involved, both direct operating costs, and those imposed by your state and federal government, and you'll quickly see why that is in no way viable, regardless of where you operate.

Who told you $30 hour? As tonygreek said if $15 labor is more because their is Workman's comp and unemployment insurance that you have to pay the gov on top of that $15 to employee. That $15 hr man is now a $20 man. Then gas, vehicle insurance, business liability ins, bus license, maintenance and repairs of equipment, advertising, set aside money to expand/buy new equipment. Can cost more then the $10 that was left over after paying your employee.

Soon as you mowed your first lawn your business has just lost money. The best part is you have not even paid yourself.


Quote:
Originally Posted by zechstoker View Post
As far as mowing prices go, a better way to compare those prices would be based on square footage rather than a duration of time. The whole bit of "company A charges X per hour while company B charges Y per hour" doesn't work since not everyone is going to be able to service the same size property in the same amount of time. Then there's the (previously mentioned) factor of operating costs that will vary across the board.
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I price out my properties by the SF so I know that I'm more consistent in my pricing.
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