Originally Posted by Sean Adams
It's always going to be difficult to compare apples to apples. I work with one landscape business owner who is dominating his area because his expenses in general are so low - no facility rent, vehicles and equipment paid for, low labor rates. When we determined what he needed to charge per man per hour to break even, he was in the $24 per hour range.
The area in which he works in general seems to have most companies charging somewhere in the vicinity of $42 per man per hour.
As you can imagine, he can come in with his bids in the $35 per man per hour range, charge a much lower price, and still make a significant profit.
That's all well and good until that same company has to grow to keep up with demand and is forced to have that facility to rent and all of the overhead that comes with growth.
You don't price your jobs for where you are...but for where your headed. If not you soon realize you can't afford to grow without raising prices....and those customers who are used to that low price will look elsewhere when you raise them to where they should have been in the first place.
You advocate the typical road to failure so often seen around here and on this site. BTW....just because equipment is paid for doesn't mean you don't have to replace it and the overhead for that just goes away. You lack the basic understanding of how a business works and you pass that ignorant information on to new guys without a clue. Stick to managing a website not doling out bad business advice.