Charge per man hour and min. cut prices.

Discussion in 'Lawn Mowing' started by Jim B, Jun 13, 2000.

  1. Jim B

    Jim B LawnSite Member
    Posts: 8

    Sure it's been asked before but I'd like to know what your charge per man hour is and if you have a minimum charge for lawn maint.<br> <br>Thanks in Advance!<br>Jim
     
  2. bill phagan

    bill phagan Guest
    Posts: 0

    Jim,<p>I think minimum pricing on jobs is a good thing. When I had my 40 man LMO, my min for maint was $1k per month due to overhead and maximizing profits. Same with landscaping. A min job of say, $500 should ensure profits. During my consultations with large and small LMO's, I've seen CPMH range from $7-27 per manhour, inclusive of overhead expense. Many of them were charging the &quot;going rate&quot; such as $22 per hour when their cost was $25. Losing money daily. If you really want to be financially sophisticated, you'll need to create a Profit and Loss Statement, MONTHLY and a Balance Sheet (Qtrly) These documents will serve as your financial &quot;roadmap&quot; to success if formatted for our industry. Pricing must be based on your jobs costs, overhead recovery and profit. It is a moving target due to our seasonality, etc. The book &quot;Accounting for Dummies&quot; will help you or give me a call. See my website at www.greenindconsulting.com<p>Hope this helps<p>Bill Phagan<br>Green Ind Consulting, Inc.
     
  3. turfquip

    turfquip LawnSite Senior Member
    Posts: 860

    <p>For my mowing company $30.00 is breakeven inclusive of overhead. A target MHR should be as high as you can make it - $40 - $50 an hour mowing is certainly doable. Not only on the turf, but you can even squeeze out numbers like these with tight, well consolidated routes so you are earning it all day. Obviously, you'll need to be running the most efficient equipment available in order to realize these numbers....<p>I'm conitnually doing a time study in my mind as I go throught the day - looking for little ways to improve efficiency in order to increase MHR. I don't know, maybe its the manager in me.<p>But. I would never agree to mow all season by the hour for ANYBODY. There is a saying &quot;live by the hour - die by the hour&quot; Doing business this way will penalize you for efficiency improvements and YOU DON&quot;T WANT THAT. You could use hourly to determine the price in a case where you don't have the experience to bid it by the job. But once price is determined, leave it there - then improve efficiency by using a bigger mower, etc.<p>Hope this helps
     
  4. CLM1

    CLM1 LawnSite Member
    Posts: 90

    Don't get upset guys/gals as this is just my opinion.<br>Had a refrigerator repairman here at the house this a.m., got up for my morning bowl<br>of cereal and the d@#% milk was warm.<br>His total time here (incl. his chats to his partner via Nextel) 37 minutes.<br>Parts = $52.35<br>Labor = $60.00<br>$60.00 per hr. w/a one hr. min.<br>Now, what is your time and knowledge worth?<br>Do you carry a pesticide or herbicide license? How about the CLT?<br>Think about it.... is it not time to raise the standards of this industry along with our rates?<br>Again...just a thought.<br>Good day to all & try to stay cool in this miserable heat/humidity.
     
  5. Charles

    Charles Moderator Staff Member
    Posts: 7,952

    CLM1, very true, but you way behind on this pricing discussion. We been whining about this for quite some time--(see previous post)
     
  6. CLM to compaire lawn care vs. white good repair is not a vaild comparsion.<p>The white goods guy has to wait around for someone to call. You can only sell that service one or a few times.<p>But lawn care services (full service esp.)<br>are sold on a regular basis ( 6 months to <br>year round). The white good repair guy needs to spend lots on advertising. <p>Myself I have zero advertising costs since my days doing residential lawn care is limited<br>I just direct sell the accounts I want to do business with.
     
  7. Getmow

    Getmow LawnSite Senior Member
    from VA
    Posts: 445

    Very good advice Mr. Phagan. Everybody's &quot;break even point&quot;, market and wants are different. Example: in my area the going &quot;quote&quot; per man hour is $30. For us, by having good equipment,systems,etc., a good average is about $50.<br> The point is KNOW WHAT IT COSTS YOU TO DO BUSINESS...then you will know what to charge.
     
  8. HOMER

    HOMER LawnSite Gold Member
    Posts: 3,183

    clm1, I tried my best to get a duscussion going on trying to raise the bar so to speak. I thought we could get some good dialogue going on how to accomplish that through the use of this forum and possible expansion, membership, seminars, etc....... I price yards as high as the market will bear, no, not by the hour, and work as efficiently as I can to achieve the highest dollar per hour figure I can. Without an across the board rate hike by all the folks with a lawnmower in their trunk, we are going to have to buy the best we can afford and plan our routes as efficiently as possible to make a good living. Capitalize on the &quot;scrubs&quot; doing the half a$$ work out there by moving in when your called(I stress when)and do top quality work so you can get more per month out of them. There are those out there that will still pay $20.00 to $40.00 per month more just to get a good job done and get it done in a timely manner. I just found 4 last week so I know there is still hope.<p>Homer
     
  9. AB Lawn Care

    AB Lawn Care LawnSite Senior Member
    from Ontario
    Posts: 585

    My charge per hour is between $30-$80 dollars an hour.I will not work for less than $30 and I think my best paying job is about $80 an hour.I this years decided not to do any job no matter how small for under $15 I have allready raised that to $20.Maby next year $25-$30?????It will just depend how well things go!<p>----------<br>from:Adam<br>AB Lawn Care
     
  10. bill phagan

    bill phagan Guest
    Posts: 0

    Jim,<p>Almost forgot. I have 3 articles I've written posted on this site....click on &quot;tips by bill phagan&quot; in the upper right hand corner....go to &quot;making # without working 24-7&quot; Think you'll like it.<p>bill phagan
     

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