Register free!
Search
 
     

Click for Weather
Reply
 
Thread Tools Display Modes
  #11  
Old 04-24-2011, 10:50 PM
sildoc's Avatar
sildoc sildoc is offline
LawnSite Silver Member
 
Join Date: Jun 2003
Location: Eagle Point, Oregon
Posts: 2,695
Oh god help me...... First I will start with the disclaimer! We are on the verge of becoming a strictly aeration and (DE)Thatching Company. We draw swords with the low ballers and laugh off the high companies.

Let me tell you aeration and dethatching is hard work regardless and draws a premium. However I have found you can make more and have a tighter working area if you charge a min and add x per k. This is the revolving factor per the area of service.
I check Craigslist and my competitors regularly. I make sure I know what my costs are.

Ok so cut to the chase........... We are a community of roughly 150k average property (turf only ) ranges from 3k-9k. Our min is 35 and covers the 3k(which we can do in less than 20 min. (definition of time is stop truck, drop gate, aerate, load, get in truck and drive off) We hold a tight pattern so next stop is within 2-3 min on average. For every thousand sqft we charge another 5-7.50. We average 10-15 a day(average day is 8 hours. time to leave drive to time to back trailer in)

I cant tell you what to charge, we charge what we can get regularly. I know we can draw in another 3-5$ per property but leave it the way it is to keep regular customers.
We can pull premium prices but find that a tighter route is more profitable.

So the break down. I have one guy that is strictly aerations. Pay him 16.50 an hour, furnish a truck and fuel to go with it. cost on truck and salary over a 7 month aeration period is around 200-215 per day. gross is around 450-500 a day. I also factored in fuel and equiptment repair in the cost portion. . so to me that is a near net between 200-300 per day, 5 days a week.

Here is where you have to make your decision. Do you want to do premium services at a premium price and do regular work at normal price or do you want to do premium work between premium and afordable price and increase your profits over time.

Don't get me wrong. I was charging the price ( 10-15 per k) but found it more profitable to charge decent prices and a tight pattern. Still draw near same overall profit, only difference is the wear and tear on the aerator and employee.
__________________
What ever I do I must do it right!
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 08:22 PM.

Page generated in 0.05990 seconds with 9 queries