Hmmmm How to charge??

Discussion in 'Lawn Mowing' started by Willofalltrades, Jun 12, 2006.

  1. Willofalltrades

    Willofalltrades LawnSite Bronze Member
    Posts: 1,000

    So a company that I would like to eventually compete with offered to subcontract 10 yards out to me today. I am a new company and I am hirting for cash. My problem... He wants me to do it under his name. UUUUMMM I need to spread MY name lol. what would you do? Is there any conditions I should put on the deal. What forms would you sign (ex: noncompete contract)? Also he wants to know what I charge.. Should I go by the hour since he is basically employing my company or price the yards like I price them for myself? I am new to this and would like a little help from prople who have done this before. Thanks, -Will
  2. Liquidfast

    Liquidfast LawnSite Senior Member
    from Ontario
    Posts: 739

    Well little fella, if you are h"i"rting for cash, you gotta take the jobs or go hungry. To me, its a either take the jobs under his terms and his way or you dont and you starve for a bit longer. I started by taking some of the lawns other companies didnt want or couldnt manage to keep up. Totally different story now.
  3. Willofalltrades

    Willofalltrades LawnSite Bronze Member
    Posts: 1,000

    ok now how should I estimate this?
  4. grass-scapes

    grass-scapes LawnSite Bronze Member
    Posts: 1,552

    and you are wondering why you are hurting for cash? Tell him what you will take to do the yards. If he doesn't find it acceptable, ask him what is. If you can do it for that, then do it. IF not, time to find another line of work......I hear McDonalds is hiring.
  5. Petr51488

    Petr51488 LawnSite Silver Member
    from NJ
    Posts: 2,372

    Go work for him and learn the ropes.. You must be doing something wrong..
  6. Willofalltrades

    Willofalltrades LawnSite Bronze Member
    Posts: 1,000

    hey guys thanks, that solves all my problems!

    now on a more serious note.. I am in my first year of business and learning as I go. I decided to go and give my own price. I just wanted to know how people have gotten burned by doing this or how they succeded with a profit. I thought about working for another company this season but wheres the fun in that (I've done it before). Even if I'm broke I love the idea of being my own boss and the endless possibilities I have to change this company to whatever I want. I do have other sources of income, this is just on the side for me.
  7. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    If they're his lawns, take them at his price.
    But DO doublecheck, make sure he doesn't lowball a few or more by dropping the price for 'his' customers so you can do them cheap while he reaps all the benefit. The only thing I don't like is the fact he can still drop more than a few by 5 dollars, you'd likely not notice the difference and he pockets $5 per lawn for free, but if you need the work then you gotta do what you gotta do, I wouldn't think about it but so hard if this were my problem (been there, don't feel bad).
    I mean, if he has you cutting 1/4 acre lots at $30, I'd do it without much further question but if the price drops too far, you gotta think for yourself some just not too much :)

    I don't mean this next bit in a bad way, but if you have no clue as to what it should cost, then this would be a great learning experience.
    Use it as such, I don't recommend you lose money but education is not free, so long you learn something then all is well.

    Here's a general guide on Grass Cutting Services:

    - 1/4 acre lot: Avg. $ 35.00
    - 1/3 acre lot: Avg. $ 40.00
    - 1/2 acre lot: Avg. $ 45.00
    - 2/3 acre lot: Avg. $ 50.00
    - 3/4 acre lot: Avg. $ 55.00
    One acre lot: Avg. $ 60.00

    Best of luck.
  8. Willofalltrades

    Willofalltrades LawnSite Bronze Member
    Posts: 1,000

    Thanks topsites, I am bidding around there. I was just wondering If I should lower my rate by 10% or not, but I think I have a good idea on how to go about this.
  9. Diablo

    Diablo LawnSite Member
    Posts: 75

    Bid the lawns for whatever you need and/or want for them to be profitable. If this guy is subcontracting out 10 lawns then there is a good chance that he is not quoting prices quite as cheaply as you are. You can probably make what you want and still put money in his pocket, great deal for everyone. If your bid is too high, he will let you know and then you could move down a little, don't take money out of your own pocket by being afraid to bid. Most likely, if he does lawn maintenance, he will probably just take these back some day anyway, when he can afford another full crew. Just a thought, good luck.:usflag:
  10. cwlawley

    cwlawley LawnSite Senior Member
    Posts: 470

    If go ahead and do them under their name. Use this money to get by while you are getting your name out. Tell him you'll do it for 80% of their price with your approval of the price.

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