does overhead dictate price?

Discussion in 'Lawn Mowing' started by kbacon3231, Dec 1, 2004.

  1. kbacon3231

    kbacon3231 LawnSite Member
    from ohio
    Posts: 37

    First off i have been reading these post for a while now and have gained a large amount of info from you guys.

    Ok now my question.

    Lets say XYZ Lawn Co. will mow 1 acre for $40.00 and after all there expenses they make $15.00 profit.

    Then ABC Lawn Co. will mow that same acre for $25.00 and after there expenses they still make $15.00 profit.

    My question is if can do it cheaper and still make the profit a larger company with more overhead (fuel, employees, equipment) am i the so called "scrub" or "lowballer"?

    TURF DOCTOR LawnSite Silver Member
    Posts: 2,138

    No Not always i have checked the price of some bigger lco in my area,and what they work for is cheap,sealed bid jobs is 1.
  3. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Rule of thumb....... As overhead goes up so does the cost of doing business but it becomes more cost offective to do the same job. Which enables you to take on more work, equaling more growth to the company. More growth equels more profit.

  4. Expert Lawns

    Expert Lawns LawnSite Silver Member
    Posts: 2,660

    What you're worth is what you're worth. That's why bigger isn't always better. Many people on this forum will tell you they wish they stayed small. Some are even getting rid of crews and going solo again. I know what I need to make a profit and I charge that amount. I very rarely drop my prices.
  5. Mueller Landscape Inc

    Mueller Landscape Inc LawnSite Senior Member
    Posts: 489

    Even a sole prop will pay self emp tax equal to what the company share and the employees share. You might think you are making the same profit but chances are you do not know all the true expenses and will hurt yourself and your market.

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