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  #71  
Old 12-14-2012, 05:20 PM
douglee25 douglee25 is offline
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Originally Posted by pthorn0 View Post
My company really doesnt mow lawns or do maintanance right now but we are thinking about getting into it. i cant tell you how many times ive sold a mulch job and the client ask about setting up a maintenance plan for mowing and such. But right now with selling the mulch and doing the stone work i just dont see the money in mowing lawns unless you have 100+ accounts...i dont like the idea of mowing a yard for $25 when i make such good profit on the mulching and hardscapes. Plus with the mulch you dont need a whole bunch of equipment. All u need is a truck, wheelbarow, shovel, trimmers, and some garbage bags. A trailer is not completely essential with the mulching because you can fit 2 yards of mulch in the back of a truck bed. But once you get going then a trailer is definately good to have...but you dont need it to get started.
I'll save you the trouble, mowing/maintenance basically pays payroll if you have employees. If you do the work yourself, the profit margin is much greater on mulch and landscape installs.

Doug
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  #72  
Old 12-14-2012, 05:23 PM
pthorn0 pthorn0 is offline
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DougLee

I dont buy the mulch in bags...i buy it by the yard and sell it by the bag...thats how you make your profit. I big job for me is 10 yards of mulch but the customer doesnt know im buying it in bulk like that...so i sell it to them by the bag. On a 10 yard mulch job i usually tell the customer it will take around 300 bags at $8 a bag...but in the smaller neighborhoods my smaller jobs are around 1-3 yards per job...and 1 yard = 40 bags
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  #73  
Old 12-14-2012, 05:29 PM
pthorn0 pthorn0 is offline
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Originally Posted by douglee25 View Post
I'll save you the trouble, mowing/maintenance basically pays payroll if you have employees. If you do the work yourself, the profit margin is much greater on mulch and landscape installs.

Doug
How do you quote yards that you mow?
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  #74  
Old 12-14-2012, 05:43 PM
douglee25 douglee25 is offline
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Originally Posted by pthorn0 View Post
DougLee

I dont buy the mulch in bags...i buy it by the yard and sell it by the bag...thats how you make your profit. I big job for me is 10 yards of mulch but the customer doesnt know im buying it in bulk like that...so i sell it to them by the bag. On a 10 yard mulch job i usually tell the customer it will take around 300 bags at $8 a bag...but in the smaller neighborhoods my smaller jobs are around 1-3 yards per job...and 1 yard = 40 bags
So do you bag it before you get there? I'm confused on the whole bag thing I think?

Quote:
Originally Posted by pthorn0 View Post
How do you quote yards that you mow?
I broke down all my costs on a per hour basis. From machines, vehicles, fuel, insurance, tax, etc to get a per hour cost. I then charge my hourly rate on top of my fixed costs to get a final quote number. Don't get me wrong, maintenance contracts can bring in money, but landscape and mulch installs will bring in much more. Maintenance contracts are also more competitive I believe. The margins just aren't there anymore when you have companies like Brickman bidding on jobs. For me personally, my time and costs don't allow me to compete driving more than maybe 30 minutes tops - and that's pushing it (maintenance contracts only). The end cost to a customer that lives further will be much much greater vs. them finding someone more local to them. I advertise that I represent two major counties in PA and when I get calls from someone that's on the edge of the further county, I tell them straight up that I can't compete and they'll be better off contacting someone more local to them. Some get mad, most respect that answer. Now I will definitely take on landscape and mulch installations much further than that. Since there's more margin in that type of job and you're typically on site for at least a full day or more, I can afford to drive an hour or so.

Doug
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  #75  
Old 12-14-2012, 08:35 PM
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phillie phillie is offline
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So at 40 bags a yard at $8/bag your charging $320/yard.. That wouldn't fly around here or most of the country. My biggest mulch job is around 80 yards and I charge them around $5k. I make a pretty good profit margin on that but no where near $320/yrd.
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  #76  
Old 12-14-2012, 10:12 PM
pthorn0 pthorn0 is offline
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Originally Posted by douglee25 View Post
So do you bag it before you get there? I'm confused on the whole bag thing I think?





I broke down all my costs on a per hour basis. From machines, vehicles, fuel, insurance, tax, etc to get a per hour cost. I then charge my hourly rate on top of my fixed costs to get a final quote number. Don't get me wrong, maintenance contracts can bring in money, but landscape and mulch installs will bring in much more. Maintenance contracts are also more competitive I believe. The margins just aren't there anymore when you have companies like Brickman bidding on jobs. For me personally, my time and costs don't allow me to compete driving more than maybe 30 minutes tops - and that's pushing it (maintenance contracts only). The end cost to a customer that lives further will be much much greater vs. them finding someone more local to them. I advertise that I represent two major counties in PA and when I get calls from someone that's on the edge of the further county, I tell them straight up that I can't compete and they'll be better off contacting someone more local to them. Some get mad, most respect that answer. Now I will definitely take on landscape and mulch installations much further than that. Since there's more margin in that type of job and you're typically on site for at least a full day or more, I can afford to drive an hour or so.

Doug
We just have the mulch yard dump 2-3 yards in the back of the trailer and show up and start mulching. I only tell the customer that it will take so and so amount of bags but we buy it by the yard and show up and start mulching...it maximizes your profits.

Last edited by pthorn0; 12-14-2012 at 10:20 PM.
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  #77  
Old 12-14-2012, 10:17 PM
pthorn0 pthorn0 is offline
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Quote:
Originally Posted by phillie View Post
So at 40 bags a yard at $8/bag your charging $320/yard.. That wouldn't fly around here or most of the country. My biggest mulch job is around 80 yards and I charge them around $5k. I make a pretty good profit margin on that but no where near $320/yrd.
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I'm not too sure about anywhere else but here in Texas it works. Wow 80 yards is a big job i bet that was a happy day for you....How did you end up getting that job?...$320 a yard for us is more than just dumping the mulch and being on our way. We trim the bushes and pull weeds...normally we charge $95/hr for trimming and labor work but i make sure to let the customer know that the trimming and such comes with the mulch.
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  #78  
Old 12-14-2012, 10:17 PM
douglee25 douglee25 is offline
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Interesting. Whatever works, right?

Doug
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  #79  
Old 12-14-2012, 10:28 PM
pthorn0 pthorn0 is offline
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Ya for sure doug...whatever works
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  #80  
Old 12-14-2012, 10:31 PM
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lawnpropm lawnpropm is offline
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Im gonna say the heck with it and start knocking on doors.
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