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Old 04-22-2013, 09:34 PM
BetterLawns&Gardens BetterLawns&Gardens is offline
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Join Date: Dec 2012
Location: Granite City, Illinois
Posts: 60
Am I lowballing?

I am new to the lawn care business. This is only my second year, and I am obviously still learning. Right now it is just me doing the work on my own, and sometimes my husband helps. Next year I plan to purchase a separate truck and hire someone to help me. So because of that I do all my estimates as if I have two people out there doing the work and if I were paying them.

I recently quoted a property and when i told the lady what the price was she about had a heart attack. I didn't quite understand why until after I cut and she paid. she told me that she had contacted 5 or 6 other companies and they quoted her between 40-50 my quote was 20. How do I react to that?

I came up with the price using a system that I figured out based on internet research. Measuring the yard, figuring out the expense of cutting it, total business costs, time to cut the yard, and what i would pay employees. I figure when I do hire someone I would pay a driver (me) 10 per hour, and a helper min wage which is 8.50. Based on that i figured it would take me approximately 45 mins or so to cut by myself and with a helper it would take about 30 or so which i came up with 20 and that is about what i charge everyone with that same sized yard.

I figure either I am planning to pay an employee way too low or my costs are way lower than theirs. The one company that she said was the most expensive I see signs around town everywhere so they are obviously getting people to pay these prices, however they seem to me to be ridiculously high.

What do I do about this? Am I loosing way too much money charging these cheaper prices when everyone else is making double or more? Or do I keep them lower to get more yards and make more money in the long run because I have more work to do? Any advice is greatly appreciated.
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