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About residential prices and the come on prices thread

Discussion in 'Starting a Lawn Care Business' started by Ecoscape01, Feb 20, 2007.

  1. Ecoscape01

    Ecoscape01 LawnSite Senior Member
    Posts: 375

    I will be new this season starting out with a 21" and some used commercial handhelds and a backpack blower. I'm not exactly fifteen, I'm 24. I read the "come on prices....." thread and though I agree with starting a little lower than the larger companies I don't agree with all of what that guy was saying. This is where I'm concerned....some people agreed with the guy and some didn't. I plan on charging a min of $35. Is that too much? I don't care if they have 4 square feet of 4 thousand. I figure it's not worth my time to charge less than 35. It's like a lot of you guys say "don't take your equipment off the trailer for no profit"....or something like that. And he said something about how young guys are gonna be turfin up lawns.......I figure I'm gonna charge almost as much as my competition to give myself a little advantage but I'm still gonna ensure quality. No offense to the pros but it doesn't seem to me like mowing lawns using walk behinds requires a whole lot of skill or knowledge. Using the larger commercial equipment however, I'm sure can be tough but is it naive of me to feel confident that I (Having no professional experience and using walk-behinds to start off) can do a good job on someone's lawn and charge accordingly. I just don't wanna feel like an idiot when I begin interacting with customers and they're shocked when I tell them $35 for a mow,trim, and blow for small suburban property that's only maybe 1/6 of an acre. I don't see how I could charge any less
  2. dewos

    dewos LawnSite Member
    Posts: 189

    Good Luck I wanna know how you do because this was the whole point of the thread. At the end of the season I will be looking for a post from you to tell me what happend. My thought is that a new person with no exp can not make 35 per cut (on the most part). But other people said they have done it so I am quite interested in it. I started at 25 plus tax for my first cuts when I had no exp. I am now at 30 per cut and I still turn A nice profit.
    Good Luck and have fun with it, If you can make 35 a cut and still have enough work they why wouldn't you do it. I just couldn't get 60-80 lawns by 35 but I am pushing 30 now (per 1/4 or smaller).
  3. Ecoscape01

    Ecoscape01 LawnSite Senior Member
    Posts: 375

    You made an interesting comment about +tax. My buddy owns a full-service/contracting/handyman company and he doesn't charge tax for his services or products. He said his services are not taxable and products like mulch have already been taxed by the wholesaler - is this true? Cuz I planned on charging tax for everything and so when I regisered my fictitious name I also registered with the PA dept of revenue as a merchant or vendor so I could charge taxes. I know I can look this up and I will but it's always nice to hear what the pros are doin. I don't know if you registered your business this way but the OBRI on the PA Dept of State website sucked
  4. PatriotLandscape

    PatriotLandscape LawnSite Bronze Member
    from MA
    Posts: 1,209

    certain things are not taxable. in most areas labor is not taxable you are much better off not charging it. you don't make money by charging tax you pass it directly to the government.
  5. Ecoscape01

    Ecoscape01 LawnSite Senior Member
    Posts: 375

    Thanks Patriot!
  6. dewos

    dewos LawnSite Member
    Posts: 189

    Now I am almost certain that lawn care is taxable and if you don't charge it you are still going to paying it come tax time. This will just cut into your profits alittle more. Lawn care has been taxed quite a while now I am pretty sure your acct. will tell you this. I have been instructed by my acct to charge taxes. The best advice I could give you because I am no pro is talk to an acct, Or ask Grits he knows alot about this business. Most acct's don't charge you to talk so pick up the phone. But i am 99% sure that it is taxed always could be wrong tho.
  7. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Posts: 2,988

    I know that in WI, this is the case. Don't know about other states though...
  8. Roger

    Roger LawnSite Fanatic
    Posts: 5,923

    For PA residents:


    See item H.

    There is no question about lawn mowing services. There are distinctions between maintaining existing landscapes, and installing new ones. But, that is spelled out clearly in that paragraph.

    Getting the license is easy. Payments and filing are made electronically through e-tides. Money is taken directly through a bank-to-bank transfer.

    All the questions with regard to collections and payments are in the link one step above.

  9. PatriotLandscape

    PatriotLandscape LawnSite Bronze Member
    from MA
    Posts: 1,209

    As I said check the regulations for your area in Mass. we don't need to charge sales tax for our services.
  10. Grits

    Grits LawnSite Silver Member
    from Florida
    Posts: 2,994

    I was going to file with my state (Florida) so I could collect sales tax on materials. I filled out the online forms and submitted them. The NEXT morning, a representative called me and asked exactly what I do and where do I buy material. After telling him, he said that I do not need to collect sales tax an anything I do. He even jokingly said, "one less piece of paperwork for you". So I would suggest talking with your accountant about this AND check with YOUR state. All the states are different on this subject.

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