How do you think I did on pricing this job?

[Above Par Lawns]

Customer lives 6 miles from me.
1 yard of compost was added to flower beds@ 2" depth(flower beds had no vegetation)
2.5 yards cedar mulch added around landscaping at 2" depth. (just a few plants to work around)

Labor- $50
+compost/mulch-$126.79
=176.79

Customer was billed $350.00

173.21 is left over

I did have to spend like 10 bucks to get new wire because i cut a invisible dog fence wire and had to fix it.

Job took roughly 4 hours (includes trip to pick up compost, then back with 2 trucks for mulch. I myself put in about 2 hours of prep time the day before.

So technically I put in 6 hours and made $28.00hr

I am happy with the profit I made, I'm just wondering if I priced it close to market value and how some of you would have gone about pricing the job.

I put in a total of 61 miles from the time I left my house until I got back home.


*Thanks in advance for your input!
-Jason

*** I must note that I am in my 2nd month of business, so be easy on me!

[Will P.C.]

Is the 50 dollars for labor payment to someone else?

If it was really 28/hr, it would have not been that bad considering you are new. You left out the gas and wear and tear on your truck. Not to mention to myriad of other small expenses it cost to be legit and keep the lights on.

Most guys charge a fee for getting the material, and you should be able to mark the material up slightly.

500-550 would be what most guys would shoot for while trying to lower the hours worked. This way you can cover the standard cost of doing business while keeping a few dollars in your pocket.

[Above Par Lawns]

Yeah the $50 was to my friend who hauled 2 yards for me and put in 3 hours of work. When i first did the estimate using materials + an hourly rate it was closer to 550 but it just seemed mind blowing to charge someone that for $125.00 worth of material. I didn't want to scare him off and lose out on the job.
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[McG_Landscaping]

Seems like it took you way too long. I would have been at roughly $325 and been in and out in 3 hours or so with a helper. By myself I would have been in and out in 4.5 hours

[Above Par Lawns]

I met my buddy at Colonial Nursery at 11:00 am to pick up mulch. I had already gone to Missouri Organic to pick up compost and unloaded it at jobsite along with wheel barrows, shovels, etc. we got to jobsite at 11:45 and were back at my house finished at 3:00pm. I feel like we kicked ass getting it done. The day before was 2 hour prep by myself edging the beds with spade shovel. I figured the 6 hours it took included all time spent for the job including driving. Should my hourly rate be used for my drive time as well?
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[andyslawncare]

I would have been much higher. We bill $75/hr minimum for 2 man labor + materials + delivery + prep. When I started, I wasn't making it with a $35/hr labor rate and it soon changed to $45-50 for 1 man. Usually the first number you come up with for a bid is what you need since you have all the numbers in front of you...I've learned to stick with the bid formula or pass on the job if they say its too high. Don't sell yourself short just because you don't have a lot of work or you will get cheap referrals from them or they'll expect cheap work 5 years from now. Best advice for you is to figure out your living cost, profit margin, and all operating costs per average day/week/month, etc and increase your fee.

[McG_Landscaping]

Originally Posted by Above Par Lawns

I met my buddy at Colonial Nursery at 11:00 am to pick up mulch. I had already gone to Missouri Organic to pick up compost and unloaded it at jobsite along with wheel barrows, shovels, etc. we got to jobsite at 11:45 and were back at my house finished at 3:00pm. I feel like we kicked ass getting it done. The day before was 2 hour prep by myself edging the beds with spade shovel. I figured the 6 hours it took included all time spent for the job including driving. Should my hourly rate be used for my drive time as well?
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I know depending on how far it is from the truck to the beds and depending on hills/difficulty I can normally do a minimum of 1 yard an hour on my own. And as far as edging it does take time with a spade but it will look better. I normally don't bid jobs by the hour. I can basically tell how long it will take me to do a job by looking at it. Sometimes I am over and sometimes I am under but it all evens out. It will come with experience

[Above Par Lawns]

It took some time having to go up his hill and into the backyard with the wheel barrows.

Andy, you charge $75 for yourself plus additional $75 for laborer? Plus all materials/gas/etc?
What part of the country are you in?

I like the idea of an hourly rate to make sure i have money going to all the right places. I just need to determine what that number is for mysell.
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[Above Par Lawns]

Originally Posted by Will P.C.

Is the 50 dollars for labor payment to someone else?

If it was really 28/hr, it would have not been that bad considering you are new. You left out the gas and wear and tear on your truck. Not to mention to myriad of other small expenses it cost to be legit and keep the lights on.

Most guys charge a fee for getting the material, and you should be able to mark the material up slightly.

500-550 would be what most guys would shoot for while trying to lower the hours worked. This way you can cover the standard cost of doing business while keeping a few dollars in your pocket.

How do you factor in monthly business expenses/insurance & wear and depreciation of equipment/truck?

[Above Par Lawns]

2.5 yards of cedar mulch
1 yard compost