Did I charge right?

Discussion in 'Starting a Lawn Care Business' started by birddseedd, Apr 28, 2013.

  1. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    You operating a hobby or a business?

    Sounds as if you are running a hobby.

    You buy materials and only get 6% off.

    I know a retail nursery center. When I started out I would go there and they gave me 10%. That 10% was my mark up. I said I have to find a wholesale supplier.

    I did. Now those $40+ bags of fert are now $20 to $28. I also mark up each bag $10. My time and fuel to get them is now being covered. Plus I charge for my labor to put it down.

    Even with the $10 mark up the customer still can not buy fert cheaper at Lowes or Home Depo.

    The same reason you do not tell a customer that you charge $60 an hr @ 4 hrs to do a clean up. You tell them $240. Customer sees a lot of work and will pay to $240 to not bust their but. Soon as you say $60 hr to pickup leaves they think you are a crook.

    You do an install. You do not itemize the mulch and labor you give them one total price.

    Now I just gave a customer several prices for several jobs.

    The hedge trimming job, and the spring clean up, edge and mulch bed job, tree work, aerate, reseed with fert and lime.

    None of those jobs were broken down. Each job was stated as one price. This way the customer could prioritize and pick and chose the one's that she could afford to have me do now.

    She never was told how many hours I would take to any of these jobs. Which is different from telling a customer when I would start and or have the work completed by. No break down of labor verse material costs.

    People pay doctors and lawyers big money because they can not do the work themselves.

    Many people can not work on their own cars so they pay repair shops $120 an hour.

    Most people realize that it does not take special skills to pull weeds and push a lawn mower. They can do this themselves. So when they here $60 an hour they will say I'm not paying that.

    This is why you can not sell work at high enough prices.

    A customer can see that you are charging them $28 for a cy of mulch and then hit them for $60 labor to install. The customer will say I can spread mulch for an hr and keep the $60 in my own pocket.

    Though by pricing mulch at $88 a cy the customer just thinks wow that much money. Boy that LCO has a look of wheel barrows of mulch to push or bags to carry. I do not want to work that hard let me pay the LCO to break his back.

    You have to make the customer perceive that you are offering a great value.

    You will never sell work at good prices when your pricing gives the customer the motivation to do the work themselves.
     
  2. birddseedd

    birddseedd LawnSite Silver Member
    Posts: 2,114

    I was just trying to get the guy to pay up front for the whole year. only took 5 minutes to do the application.
     
  3. JimMarshall

    JimMarshall LawnSite Senior Member
    from NW PA
    Posts: 305

    Where and what kind of fabric are you buying for $35???????
     
  4. birddseedd

    birddseedd LawnSite Silver Member
    Posts: 2,114

    OK I guess its only 22.77
     
  5. JimMarshall

    JimMarshall LawnSite Senior Member
    from NW PA
    Posts: 305

    The fabric?

    What size roll?
     
  6. birddseedd

    birddseedd LawnSite Silver Member
    Posts: 2,114

    3 feet by 50 feet approximately
     
  7. JimMarshall

    JimMarshall LawnSite Senior Member
    from NW PA
    Posts: 305

    What kind of material?
     
  8. birddseedd

    birddseedd LawnSite Silver Member
    Posts: 2,114

    its fabric
     
  9. JimMarshall

    JimMarshall LawnSite Senior Member
    from NW PA
    Posts: 305

    What kind though? There are several. Seems cheap @ retail prices
     
  10. birddseedd

    birddseedd LawnSite Silver Member
    Posts: 2,114

    that I don't know. its decent stuff tho
     

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