Am I lowballing?

Discussion in 'Business Operations' started by BetterLawns&Gardens, Apr 22, 2013.

  1. JCLawn and more

    JCLawn and more LawnSite Fanatic
    from MI
    Posts: 5,204

    For me when I measure a lot I measure the whole lot and go off that beause it takes just as much time to mow around and tim the house, drive, and other stuff as if they were not there, also sometimes it takes longer because what you have to mow around. As far as price break down here is what I came up with the other day. If you paying someone 10 a hour on the books you are really paying close to 15 with taxes and insurance. Now what I did what take my fuel, cost of equipment per week and then divided it by 40 for per hour. For me it come to 12 a hour then add labor cost so that's 27 a hour before I make a profit. So if I want to profit $10 a hour I need to maintain $37 a hour and in order to do that I need to charge $60 a hour to average $30-$40 all day. In reality your working in place of an employee but your still an $15 a hour expense to your business. I hope that all makes sense.
    Posted via Mobile Device
     
  2. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Posts: 7,525

    Here's my problem with this, you're in business, but you dont know anything about being in business. Took no courses, never worked for someone else doing this kind of work, you just decided one day to walk into our line of work and screw it all up.

    do you know what it means to recover over heard? Do you know what a profit and loss statement is? Or how to read one? Better yet once you can read one, have any idea how to make changes with the information you have?

    It takes time to drive to a property, unload, reload. All that, just to show up will cost more than $20.00. You are not recovering your time properly.

    furthermore who do you know that can make a living, only PART of the year earning minimum wage? McDonalds is a better job than working for you. They pay you year round, and will pay an average of $9/hr with rapid advancement, can hit $11 in the first year easy.

    Clearly your husband pays for your household/family to exist with his job, because you can't support a family on what you are even paying yourself.

    Your 'estimation' and sales are a train wreck.

    I pay my base guy who has never done this before and needs training $11/hr and top crew chief $18/hr.
    I carry a million in insurance.
    workers comp, do you have that?
    commercial liability do you have that?
    Do you have a business license with your municipality/state?
    LAst week I bid on a $50,000 municipal lawn contract (at least that was MY number) some joker who was with us for the walk through pre bid, goes up and asks the purchasing agent, "do you know where I can get a chemical license?"
    I butted in and told him, hey man if you don't have one of those you dont have any business bidding accounts like this.
    He gave me the evil eye like I didnt know what Im talking about, and I told him, if you beat my number I will challenge your bid as non responsible and request it be made non responsive in post bid, due to you not having the proper license and experience. He then gave me two evil eyes, until the purchasing agent told him...you know, he's right, and if he challenges your number, he will win, and Ill be forced not to consider your number.

    You can't just go and do stuff one day because you have an MTD and a pickup truck, and you read something on the internet.

    Let me ask you, WHY don't YOU go work for a lawn company and offer to work for them for minimum wage? At least then you can learn the business, from the ground up? What qualifies you to be a 'business owner' and have the audacity to expect to pay SOMEONE else minimum wage?
     
  3. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Posts: 7,525

    One more thing, yes you can be a sole proprietor and have employees, it's a business entity set up thing. there is nothing wrong with being "nancy" and being an owner of the business rather than being nancy the managing member of an LLC, in fact, since the patriot act changed a few things, there are few real benefits left to having an LLP or LLC over just being a sole proprietor anymore.
     

Share This Page