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Old 11-13-2013, 06:34 PM
A. W. Landscapers, Inc.'s Avatar
A. W. Landscapers, Inc. A. W. Landscapers, Inc. is offline
LawnSite Bronze Member
 
Join Date: Oct 2013
Location: Fort Worth, Texas
Posts: 1,304
If you are going to charge $25 to service a client's lawn, you will probably need to take approximately 20 to 30 minutes from the time you park your truck to the time you drive off.

You need to figure out how much it cost you per hour to operate your business and this includes your overhead and expenses and your salary and profit for the business…that number will be your minimum hourly rate. You need to know this number in order to accurately price jobs so that the jobs are profitable and your business can survive. Once you know this number, all you need to do is accurately estimate your time to complete a job.

If your minimum hourly rate is calculated out to be $60 per man hour that means you should be charging at least $1 for every minute and every person working for a client (your number may be more or it may be less than $60…you have to do the math to know). A lawn that takes you 35 minutes to service from the time you park to the time you drive off is billed a minimum of $35 ($1 for each minute based on $60 per man hour). For a 25 minute service, you charge $25. To clarify, if it takes you and one employee 60 minutes to service a lawn, using our example of $60 per man hour the client would be billed $120 because you have 2 men working for 60 minutes…a total of 120 minutes (60 minutes x 2 people = 120 minutes or 2 hours) which is 2 man hours.

Just to get the wheels turning…lets say you want to charge $25 for a lawn that will take you 1 hour to service and it cost you 3 gallons of gas to drive to the client, service the lawn and drive home.

If gas is $3.50 per gallon, it costs you $10.50 just to buy the gas you need.

$25 - $10.50 = $14.50

Now out of that $14.50 you have to allocate money for trimmer line, mower blades, edger blades, blade sharpening, oil, 2 cycle oil, air filters, oil filters, business insurance, vehicle insurance, vehicle maintenance, taxes, advertising, website hosting, cell phone service, business cards, postage and paper and envelopes if you mail invoices, your contractor's license, profit, and a few other things before you pay yourself for working that hour to mow that lawn.
__________________
Regards,
Scott
A. W. Landscapers, Inc.
www.awlandscapers.com

Hustler X-One 60"
Wright Stander RH 36"
eXmark 21" ECXKA21 Mower
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Equipment & Work thread: http://www.lawnsite.com/showthread.php?t=415830
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