Determining Price

Discussion in 'Starting a Lawn Care Business' started by mitchdb, Jan 12, 2006.

  1. mitchdb

    mitchdb LawnSite Member
    Posts: 7

    How do you determine the price of a lot? Do you charge twice as much for an acre lot vs. 1/2 acre? What would be the typical going rate for lots are just over an acre? The lots are 150' x 300' (45,000 sq').

    Thanks
     
  2. Cornwell

    Cornwell LawnSite Member
    Posts: 48

    It all depends on what the market is in your area. I know that in Daytona the average house lot is a big difference between something in another state, say Virginia.
     
  3. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    It depends on a lot of factors:1
    1. Market
    2. Your overhead
    3. The type of equipment you have
    4. The property layout
    5. And how much of a profit you want to make
     
  4. Trinity Lawn Care  LLC

    Trinity Lawn Care LLC LawnSite Senior Member
    from NJ
    Posts: 946

    Just to add to what tiedeman said: With layout remember there is a difference in a 1/2 acre with a lot of trim work and a 1/2 acre wide open. 1/2 acre lot with a lot of trim work could take you a lot more time then the acre wide open. A lot of variables. You will notice that there really is no cut and dry answer to this question.
     
  5. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    i had to make some mistakes, and learn and make some more mistakes and learn.... really is the only way....

    you could have a friend or neighbor call another compay and see what they would charge for your yard, or a friends, and use that as a comparason, but thats isnt realy a very cool thing and i would hate to wast my time like that....
     
  6. mitchdb

    mitchdb LawnSite Member
    Posts: 7

    WOW, thanks for all the responses. I'll see if I can get some local info but being in South Texas, most don't speak english!

    Thanks again!
     
  7. out4now

    out4now LawnSite Bronze Member
    from AZ
    Posts: 1,796

    Time and amount of fuel mostly. If you know about how long it will take to cut it and you know what your costs are you can add on the mark up you want to make but there are variables like if there is a lot of string trimming to do and obstacles and so forth. It also depends on the going rate of your area like alreaedy said too.
     
  8. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    It is all about time. All you sell is time. How long will it take you to do the lot.
    Plug in you cost per hour to do work and that is what you charge.
    Do a search to find out what to add up for COSTS. also search OVERHEAD, PROFIT,

    You need to cover costs and pay yourself and make profit. If you can sell work at a price that will do that than be a LCO, If you can not sell work at a rate that covers all that you have a problem.
     
  9. YCC

    YCC Banned
    Posts: 13

    The prior post is correct. Your first step is to determine what it costs you to operate your business per hour. Which includes your employees direct salary, all the appropriate taxes and insurances. Then add in all of your expenses. This is what our software does for you. Once you know your operating costs you must determine your production rates.
    How much lawn can you cut per hour. How many linear feet of bed can you edge per hour. Same for each individual item that you offer. Then you must accurately measure each property that you price. Heard a create saying once "We measure what we treasure" and for us in the service business, we treasure our time. That is our commodity, that is our product.
     
  10. SamTheLawnMan

    SamTheLawnMan LawnSite Member
    Posts: 220

    I try to multiply the square footage of the lot (small residential) by .0035 most of the time. For example: a lot 75' X 150' would be 11,250 square feet.... then multiply 11,250 X .0035 that would be $39.37...so I would charge $40.00 That's what I do most of the time.....works well for me
     

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