Hourly rate vs fixed rate

Discussion in 'Lawn Mowing' started by 1BadHawk, Mar 14, 2005.

  1. 1BadHawk

    1BadHawk LawnSite Member
    Posts: 127

    Just wondering if you all charge hourly for most of your labor services and if so does that hourly rate vary depending onthe service ie: mowing vs cleanup vs fertilizations? or do you charge a fixed rate for optional services.
    shrub trimming xx.xx/hourly vs xx.xx/per shrub
  2. theturfsurfer

    theturfsurfer LawnSite Member
    from mtka,MN
    Posts: 102

    I have a fixed charge for the usual stuff, mowing, fertilizing, clean-ups but for other stuff that I am unsure how long it will take I charge an hourly price with a minimum I think this is the fairest way for both the customer and myself.
  3. MarcSmith

    MarcSmith LawnSite Fanatic
    Posts: 7,157

    I charged a basic hourly rate, equipment gets charged at a different rate, and any products used are also charged at cost + x%

    so If someone wanted a cleanup it was X per man hour, plus X per hour for chain-saw, ect....

    Fert and Chem Aps were based on Sqft plus chem costs...
  4. Aaron Marshall

    Aaron Marshall LawnSite Member
    Posts: 136

    Charging on a fixed rate for mowing is better, but if you don't have enough experience on bidding, you could really screw yourself in the end. I charge hourly for spring/fall clean-ups becasue I haven't got the estimating down for that yet. Hope that helps.
  5. westwind

    westwind LawnSite Senior Member
    Posts: 444

    This is also how we bid "other" services. Good luck!
  6. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    Mowing has a fixed rate based on what the estimate length of time it will take to finish the job. I actually estimate how many minutes I think it will take and take that times what I need to charge per minute.

    Other jobs are purely done on time. An estimate range in price is given, but the final bill is decided on how long it takes. An example is leaf removal.

    A few jobs like chem apps, aeration and overseeding are done by square footage.

    Although different methods are used for calculating price, time is always a factor.
  7. Lorge

    Lorge LawnSite Member
    Posts: 35

    I try to base the price of my jobs by a fixed rate that is based on how long I think the job will take, so it's actually hourly. But if I tell customers that the job will be $40/man hour, some of them would wet their drawers and I wouldn't have as much work.
  8. Mo Green

    Mo Green LawnSite Bronze Member
    Posts: 1,487

    Time is money.
  9. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    Most jobs I try and bid a fixed rate (mulch, clean-ups, shrub removal, pruning, trimming, etc.)

    However, some commercial places I'm finding want an hourly wage associated with certain tasks. An hourly rate on someone with a shovel in there hand is going to be less than someone operating a pole saw. In general, the more expensive the equipment, the more of an hourly wage I will warrant.

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