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  #1  
Old 05-02-2011, 06:16 PM
ImperialLandscaping ImperialLandscaping is offline
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Join Date: Nov 2010
Location: University Heights, OH
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Residential Lawn Mowing Pricing

This is the first summer I will be starting my landscaping business and I am having a bit of trouble deciding on how to price my grass cutting service. All the yards I will be cutting will be residential. Does anyone have any suggestions to help me decide on a price to charge. Also how would I place a bid for a job over the entire summer. All suggestions help! Thanks!
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  #2  
Old 05-02-2011, 06:38 PM
DavesLL DavesLL is offline
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Assuming others chime in, you're going to hear a lot of answers. For someone just starting out, I don't think the 'typical' answer that seems to usually go along the lines of "I don't drop my gate for less than $X" is really very useful; at least for a new guy just starting. I'd say you're going to have know both your own costs (trip cost, on-site cost in terms of fuel, maintenance and equipment wear, etc...) *and* what your market will bear.

After all, it's fine and well to have very solid business reasons for why you can't mow a 1/5th or 1/4th acre property for less than $60 or $40 or whatever ... but that doesn't really do a lot for you when most of your market won't actually go for that price. It's also fine and well to say you won't mow any property that won't sign up for weekly service ... but again if your customers aren't interested in paying for weekly service that doesn't do a lot for you.

I just got started in my area six weeks ago, and every customer I've landed is not interested in paying for either weekly cuts or a premium price of $50+ for their property. I have two that keep changing when I come to cut based on their own cash flow (ex: one I've cut twice already, and the last cut was 20Apr, and she doesn't want it cut again until 9May; two others have had me cut twice a month but have had to delay payment as much as a week). I think you have to be flexible regarding your customers when you're trying to build a customer base; pushing for this or that may not be the best path.

However, I can note that I've had several customers already give me other work I've done for them, and several others have mentioned things they're looking to have done. I've also picked up four referrals from existing customers who liked my service and price. So for me, the cuts have been a way to get a relationship established that's starting to lead to additional income. I'm also keeping my eye on fall in four months, as I've already done several yard cleanups that paid very well, and am looking forward to hitting up all my existing accounts for that service when leaves start falling again.

Finally, I'm starting my 'second wave' of advertising in the next ring out from my immediate local area that has modified prices (plus trip fees to cover the five to fifteen mile distances); I'm reasoning I already have accounts that are sustaining a cash flow, so I can afford to grow slower with any new accounts I can pick up over the next few weeks.

Good luck!
ps: assuming you can wade through the threads and the clutter in some posts, I think you'll find a LOT of useful information in these forums. I know I have.
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  #3  
Old 05-02-2011, 07:08 PM
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Aaronnc Aaronnc is offline
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A dollar a minute. 30 minute lawn? =$30 10 minute lawn? =$10 Hour lawn= $60. Its a good general rule of thumb just starting out. Or you can charge per square yard. I personally charge .65 a square yard. But I've seen them priced anywhere from .30 to 1.00 per square yard depending on (local) economy, competition, price of gas, your equipment, terrain, degree of difficulty, etc,etc,etc..........
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Old 05-02-2011, 07:40 PM
DocClark DocClark is offline
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Dave seems like a very intelligent man! My strongest belief if "Doing something leads to something, and doing nothing leads to nothing!" Please understand that I'm not telling you to go lowball, or work for free but if you know what it takes to run your biz then your good. I know that with all my expenses including fuel, payroll, taxes, GL and commercial auto insurance, licenses etc that I need $28 an hour. Now if I were to go price a 30 minute job at $14 I would be flamed on here. But since I know what I have to make per hour or per job, I can move the price around to get the work so I can get my foot in the door to do more work including the neighbors or even more stuff for them. I also will take one time jobs...why not?? You can usually charge a little extra and if I don't have a full schedule then why not? It's money...people have a hard time pursuing work such as door hangers, door to door, walking into businesses but if you want to make a go at it then you have too do this stuff. Most people don't have the testicular fortitude to be mean to you for pursuing work, usually the worst that happens is they say No and walk away. Who cares?? Now go do something!
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Old 05-02-2011, 07:44 PM
ImperialLandscaping ImperialLandscaping is offline
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@DavesLL thanks a lot for the info. I agree though there is A LOT of info on this site, just from browsing it for an hour I've learned a lot. Another question I have is when you bid for a job for the summer would you add on the price of gas used to mow the law?
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Old 05-02-2011, 07:47 PM
ImperialLandscaping ImperialLandscaping is offline
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@DocClark I agree 100% with what you're saying. I think I'll just have to do a few jobs and then go from there to figure out exactly what to charge to price it reasonably and to be able to make enough money to where it is worth my time for doing the work. Thank you for the advice!
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  #7  
Old 05-02-2011, 07:54 PM
Darryl G Darryl G is offline
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I price lawns based on how much money I feel I need to make per hour to be profitable and how ling I think it will take. Going into my 10th season I've gotten pretty good at estimating them, but I still mess one up from time to time. What I used to do at first, once I got some lawns, was to compare new ones I looked at mentally to those I was already doing and knew how long they took. I have even told potentially customers that I wasn't sure, so I would cut it the first time for free and could then give them a firm price (assuming the lawn isn't overgrown). I don't do that anymore but I did back when I was just starting out.

If you're using a 21 inch mower, any mistakes can make a huge difference! And keep in mind that mowing around obstacles takes time. A 1/4 acre small heavily landsaped lawn can easily take longer than 1/2 acre lawn that is open mowing. And don't forget to budget for trimming and blowing.
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  #8  
Old 05-02-2011, 09:08 PM
WLC26 WLC26 is offline
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Can you really make any money at 28 bucks an hour? I usually figure on 80 an hour, and sometimes that gets rough. If i cant do a 25 dollar lawn in 15 mins, I will let it pass. Depends on how busy you are though.

When i first started, I would take just about anything. Now I am quite busy so for me to take a 25 dollar lawn and it take 30 mins, is pretty much a waste, as I can get one somewhere else that takes 15 mins. Its better to be making some money instead of nothing, but when you get busy, you have to really think about how to make as much profit as possible.


Quote:
Originally Posted by DocClark View Post
Dave seems like a very intelligent man! My strongest belief if "Doing something leads to something, and doing nothing leads to nothing!" Please understand that I'm not telling you to go lowball, or work for free but if you know what it takes to run your biz then your good. I know that with all my expenses including fuel, payroll, taxes, GL and commercial auto insurance, licenses etc that I need $28 an hour. Now if I were to go price a 30 minute job at $14 I would be flamed on here. But since I know what I have to make per hour or per job, I can move the price around to get the work so I can get my foot in the door to do more work including the neighbors or even more stuff for them. I also will take one time jobs...why not?? You can usually charge a little extra and if I don't have a full schedule then why not? It's money...people have a hard time pursuing work such as door hangers, door to door, walking into businesses but if you want to make a go at it then you have too do this stuff. Most people don't have the testicular fortitude to be mean to you for pursuing work, usually the worst that happens is they say No and walk away. Who cares?? Now go do something!
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  #9  
Old 05-02-2011, 09:29 PM
DocClark DocClark is offline
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WLC26 Great question..No I can not make money at $28 an hour. I know that with all my expenses and payroll it takes $20 an hour to break even and that includes paying myself. Of course the name of the game is for a sole proprietor to pay themself what they are worth AND to put money in the biz account. So to answer your question anything over $28 an hour goes in the bank account for a rainy day. I usually shoot for $50 per hour but I know that I can go down to a certain point and NOT lose money. But at $28 an hour I can still pay myself if it's a solo job AND pay all my expenses but quite frankly I don't think I have ever had to go that low! Thankfully
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Country Lawns and Landscaping in Coeur D' Alene, Idaho
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  #10  
Old 05-02-2011, 09:40 PM
yardguy28 yardguy28 is offline
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since your just starting out knowing your cost of doing business is near impossible. the forumla thing like one stated charging a dollar per min. and knowing how long a long will take is difficult as well since your just starting out. the square foot thing is a pain the @ss.

i just called around and got estimates on my own lawn and took an average of that. i adjusted my numbers for larger properties and smaller ones.

i'm on my 5th profitable year in business and i'm just now starting to examine my cost of doing business and what not. up until this season i never knew my cost of doing business.

i've always priced mowing jobs my looking at them. same with mulch jobs. other services are done by the hour but i've learned how long certain services will take.

i usually just price a lawn off of what i want for it based off of hour hard or easy it will be to service. i don't pay much attention to the time thing.
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