Figuring out costs

[cpllawncare]

It's just hard to believe that there is that much difference in cost of living between here and there.I'm seeing guys here charging 25/30 mn/hr just crazy!

[GreenGuysLC]

I AM in the south....and yep....man hours here are also 60-75. It is called knowing your cost. Factor in your fuel...your oil...your belts...your misc repairs....blades....advertising....office expenses (even small guys have this)....not to mention license...liability ins....auto ins ( the commercial type)...workers comp.... if you can work and cover cost at 30 pmh.....you havent truely looked at your cost. Hell...8 years ago it cost me $20 an hr just for the mower...not including the man sitting on it! Lowballers dont have to low ball to get business. You can still get business and be respectable to the industry...just be willing to lose a bid here and there...i will take my one $70 pmh over your 3 $30pmh any day.
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[JContracting]

Wholeheartedly agree on all of that post. ↑
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[cpllawncare]

Originally Posted by GreenGuysLC

I AM in the south....and yep....man hours here are also 60-75. It is called knowing your cost. Factor in your fuel...your oil...your belts...your misc repairs....blades....advertising....office expenses (even small guys have this)....not to mention license...liability ins....auto ins ( the commercial type)...workers comp.... if you can work and cover cost at 30 pmh.....you havent truely looked at your cost. Hell...8 years ago it cost me $20 an hr just for the mower...not including the man sitting on it! Lowballers dont have to low ball to get business. You can still get business and be respectable to the industry...just be willing to lose a bid here and there...i will take my one $70 pmh over your 3 $30pmh any day.
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Your solo though! You can't charge that with a crew!

[JContracting]

Why couldn't you?
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[Nate'sLawnCare]

I built a spreadsheet for calculating my minimum charge for properties. It calculates my fuel cost for mower and vehicle up to $4.50/gallon, labor to pay a helper(if needed), mowing time based on acres/hour. I also factor in as a cost for replacement and maintenance of my equipment - example is a $8000 mower that I would replace at approx. 2000 hours will be $4/mowing hour to replace. I add in a little extra for maintenance, insurance, licenses, etc. I also have a minimum hourly rate (including travel) to clear after all of this is calculated. I'm working on another spreadsheet along the same lines to do apps since I've started offering that this year.

[cpllawncare]

Originally Posted by JContracting

Why couldn't you?
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Because nobody is going to pay two guys $70 to spend 30 mins on their lawn ! At least not anybody with any sense!

[xclusive]

Originally Posted by cpllawncare

Because nobody is going to pay two guys $70 to spend 30 mins on their lawn ! At least not anybody with any sense!

Im with you on that. I have some lawns that take a half hour with 4 guys. There is no way I can charge $140.00. I would be out of business.

[jrs.landscaping]

It's kind of the same concept as when guys buy newer/better equipment, they think their price should go up. Business owners know how to figure costs and to trim fat to keep operations lean and expand margins. To the guys making $70 PMH if I could get away with it I'd charge that much as well.

[cpllawncare]

Originally Posted by jrs.landscaping

It's kind of the same concept as when guys buy newer/better equipment, they think their price should go up. Business owners know how to figure costs and to trim fat to keep operations lean and expand margins. To the guys making $70 PMH if I could get away with it I'd charge that much as well.

If I were solo I would charge $70/pmh, that's just $35 for your avg lawn! We try to get $75/pmh on cleanouts.