A new venture?

Discussion in 'Lawn Mowing' started by BDI, Dec 25, 2005.

  1. BDI

    BDI LawnSite Member
    from S.E Pa
    Posts: 21

    Hi guys. I sold my maintence buisness in 2000 to tru green land care with 670 accounts. I signed saying i wound not opperate for 5 years in the agreement. Well time flew by and since then I have created a construction company building 30 homes yearly with home renovations as well. I am exploring the idea to reinstate my maintence buisness as of the first of the year. I was wondering on rates 6 years late. What is the current generl labor rate these days. I would get about 65 an hour for a foreman and 45-55 for every labor after. I assume the rates would have increase in 6 years by 12-17%. I f you guys can give me some insite on what the market constitutes, i would be glad. Thanks
     
  2. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    You might have better luck posting this in the pesticide forum.

    Good luck
     
  3. BDI

    BDI LawnSite Member
    from S.E Pa
    Posts: 21

    Sorry. Tru green land care is a full service landscape company. They are a branch of chem lawn. Our accounts were landscape maintence accounts. Ie. mowing, mulching ect....
     
  4. Jpocket

    Jpocket LawnSite Silver Member
    Posts: 2,278

    The rates have not changed that much within the past 5 years, sadly.

    Especially if you starting back up, I wouldn't go charging premium rates.

    I would say rates have increased about 10%, you area might be different I would ask some owners in your area, you may not have a ton of low-ballers in your area.
     
  5. mrusk

    mrusk LawnSite Gold Member
    Posts: 3,260

    I just find it hard to belive that in 5 years you were able to build a home building business doing 30 homes a year. You must be making 3-4 mil a year personally. Why would you want to get back into maintence. Something doesn't add up.

    Matt
     
  6. BDI

    BDI LawnSite Member
    from S.E Pa
    Posts: 21

    You are way off with your profits. Anyways, the market can suddenly change and along with other investments in the past, this was a great one. I am still wondering on rates though. Ive only heard from one person.
     
  7. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,842

    Are you talking about just general lawn care? Because that's the forum you are posting in.

    As for general lawn care, I've never been able to get the kind of hourly rates you speak of. That would be very high end. I don't know of too many companies in my area that make those rates for general lawn maintenance.

    For other landscape construction work, that's not too far off. We charge just about exactly what you posted. We're probably in the middle to high end of contractors as far as pricing goes for our area. If a customer got 10 bids from 10 random landscape contractors, and rated each bid from 1-10 (lowest to most expensive) we'd probably be about #7. So there are some contractors around here who charge more than the rates you are speaking of, but I'd say 70% charge that or less. Again, this is just for construction; new lawns, irrigatation systems, water features, etc.
     
  8. AintNoFun

    AintNoFun LawnSite Bronze Member
    Posts: 1,807

    i know in my area the rates haven't gone up at all.. if anything i think prices have gone down on residential. and seems like they are falling on commercial maintenance as well...
     
  9. cantoo

    cantoo LawnSite Silver Member
    Posts: 2,910

    mrusk
    LawnSite Senior Member Join Date: May 2003
    Location: northern jersey
    Posts: 343

    I just find it hard to belive that in 5 years you were able to build a home building business doing 30 homes a year. You must be making 3-4 mil a year personally. Why would you want to get back into maintence. Something doesn't add up.

    Matt

    Matt, there are scrubs in the house business too. The company I work for does a couple of hundred houses a year and the profit margins aren't quite what you think they are. We build houses from $65,000 to $1.8 mil or so.
     

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