Creating a pricing process

Discussion in 'Starting a Lawn Care Business' started by Rsails, Sep 4, 2008.

  1. Rsails

    Rsails LawnSite Member
    from NY
    Posts: 37

    I am all over the map on my pricing and want to try to structure it in a way that I am consistent.

    Here is what I am thinking

    Labor Rate:
    $450/day crew leader
    $300/day crew member

    $750 gross/day

    for example if a lawn takes me an hour to unload truck, cut , trim and blow and reload truck - i would take my $750 gross divide by 7 hours and than multiply by the time

    in this case monthly maintenance would be $428/month

    Materials - marking up my cost by 50%

    Rental equipment- aerators, slice seeders etc... marking up cost by 50%
     
  2. Tyler7692

    Tyler7692 LawnSite Bronze Member
    Posts: 1,086

    Good luck with those numbers....

    that's $107.00 an hour for basic mowing...

    Show me these lawns!
     
  3. Rsails

    Rsails LawnSite Member
    from NY
    Posts: 37

    any thoughts about what it should look like. how much a day do you try to gross
     
  4. Tyler7692

    Tyler7692 LawnSite Bronze Member
    Posts: 1,086

    I don't understand what your doing with the crew leader & crew member pay.... Pay them an hourly rate. Also, the general rule of thumb for mowing USED TO BE to price lawns at $60.00 an hour. (With a $30-35 minimum) One person should be able to gross $400 or so a day. Sometimes more or less. Two people, $650-700.
     
  5. Rsails

    Rsails LawnSite Member
    from NY
    Posts: 37

    I run a 2 person crew. myself crew leader and one crew memeber

    I was thinking I want to make 450 per day and also bill out my crew memeber at a rate of 300
     
  6. Tyler7692

    Tyler7692 LawnSite Bronze Member
    Posts: 1,086

    Ahh.... that makes more sense. I thought you were going to pay your crew leader 450 daily, ect...

    Yeah, that sounds like reasonable prices... looks good to me..
     
  7. westsweeper4

    westsweeper4 LawnSite Member
    from 45069
    Posts: 60

    What kind of lawns do you think you will get that will pay this much?

    Its all good on paper but once you get in the real world its a lot harder. And if you really pay your crew member 42 dollars an hour, sign me up.
     
  8. stroker51

    stroker51 LawnSite Senior Member
    Posts: 819

    What he's saying makes sense, he wants to be able to bill out $300 for the work that his helper would do for the day, not pay them that much. Seems on target to me, although there are some days and parts of my route that I average way above those numbers.
     
  9. Rsails

    Rsails LawnSite Member
    from NY
    Posts: 37

    what I have realized thru this exercise is that my break even amount per day is 268. dollars. 6 days a week for 8 months. covers all of my overhead for 12 months.

    I didn't include snow plowing in this amount, but gas, maintencae insurance and truck is.
     
  10. S.I.

    S.I. LawnSite Senior Member
    from west
    Posts: 323

    That is $107 per hour for 2 people. $53.5 gross per man hour. You don't make that much? Are you pushing a Wal-Mart mower out of the back of your Geo Metro?
     

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