Figuring out costs

Discussion in 'Business Operations' started by SullysAllSeasons, Jan 19, 2013.

  1. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    It's just hard to believe that there is that much difference in cost of living between here and there.I'm seeing guys here charging 25/30 mn/hr just crazy!
     
  2. GreenGuysLC

    GreenGuysLC LawnSite Senior Member
    Posts: 326

    I AM in the south....and yep....man hours here are also 60-75. It is called knowing your cost. Factor in your fuel...your oil...your belts...your misc repairs....blades....advertising....office expenses (even small guys have this)....not to mention license...liability ins....auto ins ( the commercial type)...workers comp.... if you can work and cover cost at 30 pmh.....you havent truely looked at your cost. Hell...8 years ago it cost me $20 an hr just for the mower...not including the man sitting on it! Lowballers dont have to low ball to get business. You can still get business and be respectable to the industry...just be willing to lose a bid here and there...i will take my one $70 pmh over your 3 $30pmh any day.
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  3. JContracting

    JContracting LawnSite Bronze Member
    Posts: 1,878

    Wholeheartedly agree on all of that post. ↑
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  4. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    Your solo though! You can't charge that with a crew!
     
  5. JContracting

    JContracting LawnSite Bronze Member
    Posts: 1,878

    Why couldn't you?
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  6. Nate'sLawnCare

    Nate'sLawnCare LawnSite Bronze Member
    Posts: 1,001

    I built a spreadsheet for calculating my minimum charge for properties. It calculates my fuel cost for mower and vehicle up to $4.50/gallon, labor to pay a helper(if needed), mowing time based on acres/hour. I also factor in as a cost for replacement and maintenance of my equipment - example is a $8000 mower that I would replace at approx. 2000 hours will be $4/mowing hour to replace. I add in a little extra for maintenance, insurance, licenses, etc. I also have a minimum hourly rate (including travel) to clear after all of this is calculated. I'm working on another spreadsheet along the same lines to do apps since I've started offering that this year.
     
    Last edited: Jan 28, 2013
  7. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    Because nobody is going to pay two guys $70 to spend 30 mins on their lawn ! At least not anybody with any sense!
     
  8. xclusive

    xclusive LawnSite Bronze Member
    Posts: 1,052

    Im with you on that. I have some lawns that take a half hour with 4 guys. There is no way I can charge $140.00. I would be out of business.
     
  9. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,715

    It's kind of the same concept as when guys buy newer/better equipment, they think their price should go up. Business owners know how to figure costs and to trim fat to keep operations lean and expand margins. To the guys making $70 PMH :clapping: if I could get away with it I'd charge that much as well.
     
  10. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    If I were solo I would charge $70/pmh, that's just $35 for your avg lawn! We try to get $75/pmh on cleanouts.
     

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