Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #1  
Old 09-13-2012, 12:03 AM
BROWNS LAWN CARE's Avatar
BROWNS LAWN CARE BROWNS LAWN CARE is offline
LawnSite Senior Member
 
Join Date: Aug 2012
Location: Collinsville, TX
Posts: 614
How much do you mark-up fertilizer?

When you buy the fertilizer what is the markup?

thanks
Reply With Quote
  #2  
Old 09-13-2012, 04:38 AM
cgaengineer's Avatar
cgaengineer cgaengineer is offline
LawnSite Fanatic
 
Join Date: May 2007
Location: Winder, GA
Posts: 15,778
We do t sell fertilizer, we sell an application/service.
Posted via Mobile Device
Reply With Quote
  #3  
Old 09-13-2012, 06:43 AM
humble1's Avatar
humble1 humble1 is offline
LawnSite Silver Member
 
Join Date: Nov 2007
Location: MA
Posts: 2,304
I second that you are paying for the fertilizer the broadleaf weed control, blowing the prills off the walk and the advise I give you.
Posted via Mobile Device
Reply With Quote
  #4  
Old 09-13-2012, 07:36 AM
BROWNS LAWN CARE's Avatar
BROWNS LAWN CARE BROWNS LAWN CARE is offline
LawnSite Senior Member
 
Join Date: Aug 2012
Location: Collinsville, TX
Posts: 614
ok, i guess i don't understand. i am also in the computer business and when i buy new parts for clients, i mark up the price 15-20%.

does the lawn care industry not work this way? each time a product changes hand in america, the price goes up...

Last edited by BROWNS LAWN CARE; 09-13-2012 at 07:40 AM.
Reply With Quote
  #5  
Old 09-13-2012, 07:48 AM
Snyder's Lawn Inc's Avatar
Snyder's Lawn Inc Snyder's Lawn Inc is online now
LawnSite Gold Member
 
Join Date: Feb 2011
Location: Kirksville Mo
Posts: 3,545
I dont mark anything up I make my money on my Labor
Reply With Quote
  #6  
Old 09-13-2012, 07:51 AM
BROWNS LAWN CARE's Avatar
BROWNS LAWN CARE BROWNS LAWN CARE is offline
LawnSite Senior Member
 
Join Date: Aug 2012
Location: Collinsville, TX
Posts: 614
ok, well maybe i am misunderstanding how the system works.

my understanding of the american economic system is that it is greedy and everyone involved in touching a product or service marks up the price....
Reply With Quote
  #7  
Old 09-13-2012, 06:30 PM
GreenI.A.'s Avatar
GreenI.A. GreenI.A. is offline
LawnSite Silver Member
 
Join Date: Jul 2010
Location: North East
Posts: 2,027
Quote:
Originally Posted by BROWNS LAWN CARE View Post
ok, well maybe i am misunderstanding how the system works.

my understanding of the american economic system is that it is greedy and everyone involved in touching a product or service marks up the price....
yes there is a mark up. But in this industry, particularly fertilizer it is not a set percentage. Instead most companies have a sliding scale they charge by the square foot or 1000 sq feet. The way my sliding scale works is that I have a minimum price for 3k sq feet, then there is an additional charge per 1k sq ft. Once the lawn hits 20k sq feet that additional charge becomes a little smaller. At 40k the additional charge becomes a little bit smaller again.

The reason why a general markup does not work is because each round of fertilizer is going to cost different, fert w pre-m is a different cost than fert w merit, fall fert is another price, winterizer is another, spraying weeds do=uring the visit or a service call is all figured in to the price as well. Most customers do not want to pay a different charge each visit but would rather pay a set price each time, to do this you simply add up all of the projected costs for the season and devide by the number of billing cycles to get an average.
__________________
Why do people not respect us as they do other tradesmen? Because every Tom, Dick, and Harry doesn't think he can be a plumber or electrician!
Reply With Quote
  #8  
Old 09-13-2012, 06:32 PM
GreenI.A.'s Avatar
GreenI.A. GreenI.A. is offline
LawnSite Silver Member
 
Join Date: Jul 2010
Location: North East
Posts: 2,027
are you spraying weeds as well? I don't see why someone would pay an inexperienced applicator to spread straight fert when they can get a liceansed company to spray the weeds as well.
__________________
Why do people not respect us as they do other tradesmen? Because every Tom, Dick, and Harry doesn't think he can be a plumber or electrician!
Reply With Quote
  #9  
Old 09-13-2012, 07:49 PM
32vld 32vld is offline
LawnSite Gold Member
 
Join Date: Feb 2011
Location: LI NY
Posts: 3,018
Are you buying a large bag of fert from home depot for $45?

Do you buy from a mom and pop garden center and you get that bag at a 10% discount?

Do you buy from a commercial/wholesale dealer for $25?

Paying retail can't markup unless you charge too little for your labor.

How can you mark up more then the 10% discount you get from the garden center? Can't.

I buy from wholesaler, I charge fert cost plus $10 to cover time to get the material. Then my labor has always been the same rate as mowing. Yes that means the $45 box store bag I charge my customers $35 + my labor. Never give fert and labor pricing. Give on inclusive price. They don't need to know how much labor vs material.

My prices for fert are competitive.

Reply With Quote
  #10  
Old 09-14-2012, 10:22 AM
BROWNS LAWN CARE's Avatar
BROWNS LAWN CARE BROWNS LAWN CARE is offline
LawnSite Senior Member
 
Join Date: Aug 2012
Location: Collinsville, TX
Posts: 614
Quote:
Originally Posted by GreenIndustryAssociates View Post
yes there is a mark up. But in this industry, particularly fertilizer it is not a set percentage. Instead most companies have a sliding scale they charge by the square foot or 1000 sq feet. The way my sliding scale works is that I have a minimum price for 3k sq feet, then there is an additional charge per 1k sq ft. Once the lawn hits 20k sq feet that additional charge becomes a little smaller. At 40k the additional charge becomes a little bit smaller again.

The reason why a general markup does not work is because each round of fertilizer is going to cost different, fert w pre-m is a different cost than fert w merit, fall fert is another price, winterizer is another, spraying weeds do=uring the visit or a service call is all figured in to the price as well. Most customers do not want to pay a different charge each visit but would rather pay a set price each time, to do this you simply add up all of the projected costs for the season and devide by the number of billing cycles to get an average.
thanks for this explanation. the yard in question i estimate to be around 16K-18K sq ft.



Quote:
Originally Posted by GreenIndustryAssociates View Post
are you spraying weeds as well? I don't see why someone would pay an inexperienced applicator to spread straight fert when they can get a liceansed company to spray the weeds as well.
and no i will no be spraying for weeds, i am not licensed and i told her that. however, she was left with the understanding that i could probably spread a weed-n-feed, but i have since found out i cannot do. just straight fertilizer without a license.

so there is a chance she will no longer want to hire me. i will be talking to her on Monday.


Quote:
Originally Posted by 32vld View Post
Are you buying a large bag of fert from home depot for $45?

Do you buy from a mom and pop garden center and you get that bag at a 10% discount?

Do you buy from a commercial/wholesale dealer for $25?

Paying retail can't markup unless you charge too little for your labor.

How can you mark up more then the 10% discount you get from the garden center? Can't.

I buy from wholesaler, I charge fert cost plus $10 to cover time to get the material. Then my labor has always been the same rate as mowing. Yes that means the $45 box store bag I charge my customers $35 + my labor. Never give fert and labor pricing. Give on inclusive price. They don't need to know how much labor vs material.

My prices for fert are competitive.

i would buy the large bag. will have to check local stores, can probably get as good or better price.

i would have to be doing more volume for wholesale prices.

thanks
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 02:46 AM.

Page generated in 0.08429 seconds with 9 queries