Commercial cutting rates?

Discussion in 'Lawn Mowing' started by galusham, Mar 29, 2006.

  1. galusham

    galusham LawnSite Member
    Posts: 16

    From what I've learned here, I've been trying to price my residential lawns at $1/minute or $60/hour. Would this rate also apply to cutting commercial lots like hotels and banks. Thanks.
     
  2. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    In the first place, you cant do the perverbial "dollar a minute" formula. For some, you're too high....WAY too high. For others, you'd go broke. It has to go from the root - your expenses, operating costs, and how much YOU need to make. That is the ONLY "formula". The rest is just amateur guessing and shooting from the hip.
    In the first place, what are you cutting with? What other equipment do you run? If someone comes in with a 42" Yardman mower and cuts a yard for 60 an hour, and gets 60 dollars for that yard, then someone comes in and cuts the same sized yard next door with a 10,000 fancy "Z" mower, should they charge only $25 because it took them less than a half hour for everything?
    What about when someone graduates from a small tractor to a 36" walk behind? A 48? Or, then to a Z? Should they "cut" their prices because now they can do it faster? Cheaper?
     
  3. galusham

    galusham LawnSite Member
    Posts: 16

    Sorry, I'll try to provide more info. I know that $60 an hours is just a guage, but I found it useful for myself since I'm new. I would be using the proper sized equipment for each job. If it's a small patch of grass, I'd be using my 21 inch push. If it was larger I'd use my 48" walkbehind. Maybe I asked the wrong question. I guess I just want to know: If 2 nearly identical jobs take about the same time, can you charge more for one because it is commercial? I've only bid on residential so far and have a chance to bid on a hotel this weekend. I'd rather bid on the high side than be the lowballer, but I also don't want to bid so high that I'm not even close.
    Thanks.
     
  4. LawnGuy73

    LawnGuy73 LawnSite Bronze Member
    Posts: 1,945

    If anything you would want to charge a little less on commercial. Its even more competative than residential.
     

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