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  #61  
Old 10-28-2009, 08:11 AM
mcw615 mcw615 is offline
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Join Date: Jun 2009
Location: Virginia
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Quote:
Originally Posted by pflasch View Post
In Virginia, some are now charging $1.10 to $1.15 per minute for the quote...
Several years ago, $1.00 / min. was about average.

Haven't YOUR costs gone up in the last 2 -4 years??? Your pricing needs to keep up... right?
i.e. ZTR's have had at least a 15% price hike in the last 2 years alone!
We charge $12-$15 just to show up for residentials. $25 to show up at commercial. Then a minimum of $60/hr per man from truck-in-park to truck-in-drive.
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  #62  
Old 10-28-2009, 08:34 AM
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Lazer Cut Lazer Cut is offline
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Location: Southern, Ohio
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Hey guys thanks for all the help! I am making letterheads to send out to change from $25 to x amount. I am in the process of getting 5 daycare centers right at about a $18,000 a year for fert, slice seed and mowing. I have been reading these posts over and over. Get a little more info everytime.

This thread is in Turf Magazine? Well that's great! I am glad this helps not only me but everyone around me. If anyone has a extra copy I'd like to see it or know how to get ahold of it please let me know.

Thanks guys again. If anyone has more information we all appreciate it. I have learned a lot from this thread. Glad my stupidity of the new guy estimating has lead to a thread that is just filled with information!
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  #63  
Old 10-28-2009, 09:03 AM
delphied delphied is offline
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Quote:
Originally Posted by Charles View Post
I agree. What people should do is figure up their NET profit at the end of the year and estimate how many hours they spend on anything related to their business. I bet they are making minimum wage or less(if you are charging $25 to $35 per hour) and I bet their net is around the poverty line for one person. Poverty line is between $14,000 and $15,000. http://aspe.hhs.gov/poverty/09poverty.shtml
You don't need to ask anybody if you should raise your prices if you do the above. If your area won't support higher prices then there are alternative businesses and jobs out there. Because your future in lawn care is very dim. You have no retirement. No extra money for investments. NO money for Health care etc
So sit down and crunch the numbers.Annual Gross income minus fuel, parts insurance, milleage$$, equipment, advertising etc...
Hopefully you married a money lady. Hang on to her like your life depended on it
One of the most honest posts Ive seen.
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  #64  
Old 10-28-2009, 09:57 AM
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Lazer Cut Lazer Cut is offline
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Ya about the money lady lol... I am just about to turn 18 on Nov. 2nd so I have a little room to recover for next year. Graduate decent time first week in may and gonna hit the ground runnin. I am setting up meetings to sign contracts after my birthday lol that way its legal because I'll be of age.

Thanks guys again. Anyone want to ad more than welcome.
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  #65  
Old 10-28-2009, 10:05 AM
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Lazer Cut Lazer Cut is offline
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http://www.turfmagazine.com/article.php?id=4249

That is the link to Turf Magazine where you can see the thread and who it ended with.
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  #66  
Old 10-28-2009, 11:49 PM
performanceLLC performanceLLC is offline
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Location: Warrior, Alabama
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Hey lazer cut I know there is an scientific method for figuring how much you need to make per hour/min. But it all boils down to what your needs are and your economic area. I know the next guy has 20 thousand worth of new equipment and a crew working with him but when you crunch the numbers he probable is bringing home less than a one man crew with used equipment. as long as it works for you that is your whole goal. I just started my business in late April this year done some shopping around for used equipment and put my own equipment to work for me. I have an john Deere 118 I already had an husqy weed-eater, bought an used scag 52 walkabout's for $800, and lowes husky backpack, an used tanka hedge trimmer from the pawn store. put my own rakes to work. a little investment in business cards, insurance, and word of mouth. I have 1 municipal account, 3 business accounts, 28 yards. 2 property management companies. and loads of gutter clean outs a month. I average about $4500 profit a month give or take $500. Best thing I was not in the whole before I got started good. Now with extra in the bank next season I will purchase some new equipment and pay cash. Be creative and smart. Start ahead not behind.
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  #67  
Old 10-29-2009, 08:10 AM
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Lazer Cut Lazer Cut is offline
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Location: Southern, Ohio
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Next year I plan on hitting the ground running. I have advertising being set up now. Getting post cards this year instead of flyers to see if that may work better. They look more professional to me but I am going to look into getting those professional looking flyers which will probably work great (hopefully).

Thanks again guys for the posts. Has helped me out more than I can say.
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  #68  
Old 02-26-2010, 08:32 AM
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Lazer Cut Lazer Cut is offline
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Hey guys... just a little update... I did get the Daycare centers for this upcoming season... I have already added 11 residential accounts and I have barely advertised... Hopefully this year will be great for everybody

I have dropped the PITA customer that I was doing and losing my arse on his 2 acre prop... ya I researched it... 92ksqft... I lost my butt on that prop last year... not this year unless he wants to pay what I am going to charge for props like his.

Thanks to all that posted...
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  #69  
Old 02-26-2010, 08:56 AM
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RandallM RandallM is offline
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I basically am in a similar situation with some properties that I picked up last year. My minimum price to drop my trailer and unload my equipment is $35. Since last year was my first year in business, I was getting a feel for bidding properties and feel I underbid several at $35 when it should really have been in the $45-50 range. I am a part time operation and probably will not grow beyond 20-25 customers. I finished the season with 15 regulars and will keep all but a couple. Rather than run off the ones I have by raising prices, I figure I will be more aggressive in my pricing for new customers. Once I have topped out for what I can handle, I'll raise prices accordingly the next year on the customers I feel I have underbid. Not by much, maybe $5. If I lose them, I will have enough of a customer base to sustain me and will eventually pick up other customers to replace them.


Quote:
Originally Posted by topsites View Post
This might not fix your problem, but I know this feeling LOL

So, then...

Economically speaking it is a little bit too soon, I think, to start raising prices aggressively, the key word here is aggressive...
Meaning you can ask, but I dare say at least for the time being it is the customer's choice.

Now, seeing how we got some time...
For what you're speaking of to work, you might concentrate on increasing your customer base.
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