Hourly rate

Discussion in 'Starting a Lawn Care Business' started by CP Estates, Feb 23, 2006.

  1. CP Estates

    CP Estates LawnSite Member
    from North
    Posts: 45

    Simply put, for those of you who work alone, what is your gross target hourly rate? I've been hearing between 50 and 55 per hour.
     
  2. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    50-55 is 100k per year. A comfortable living could be made with a salary of 100k...just my opinion. Of course we haven't discussed uncle sam
     
  3. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    i shot for 50 to 60 an hour, but what are your expenses, figure out your cost of doing business, what you need to survive on and get your price from there

    and i did not make 100k from charging 60 per hour... that is irrelivent, depends on number of accounts, number of cuts in your region, upselling...
     
  4. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    Sorry,

    If you generate $50/hr for 2080 hours than your income is $104,000.00.
     
  5. CP Estates

    CP Estates LawnSite Member
    from North
    Posts: 45

    I was just figuring out that if people are shooting for 50 - 60 per hour before costs come off, then the more one can reduce costs, the more that they would make. Focus on one area for example and your travel time is reduced therin putting extra money in your pocket. I've got about 100 2 acre estates where I live with a variety of guys from all over looking after a few each. My thought was to get 20 of them @ 50 / hr (3 hrs / home) and I'm looking at $75,000 based on 25 cuts / year. If I have virtually no travel time then I can either pick up a few more or give each of them added value like maybe a basic spring / fall cleanup included or something else.

    How low have you seen people go? If I'm going to be looking for 50 /hr. and Joe Lowballer is doing it for 35 then no matter where I cut expenses, I can't compete.
     
  6. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    you have to do better work, higher quality, more personal service... and the lowballer will hopefully go out of busines in the first 8 weeks and they will call you back....:)

    and if they dont, they arent the type of customer you want anyway...
     
  7. CP Estates

    CP Estates LawnSite Member
    from North
    Posts: 45

    ... as I am a resident of the area that I mentioned, I have the ability to offer things like cleanups that realistically only cost me my time. If I include this and am competative on rates, does that make me a lowballer or just a prudent businessman?;)
     
  8. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    i dont give away anything... in fact my time is what is most valuable... but it may work great for you:)
     
  9. CP Estates

    CP Estates LawnSite Member
    from North
    Posts: 45

    My problem is that I have a marketing background and the first question is always "What makes you any different than everyone else?". You can't say service because everyone will quote that line. There's alot of competition in this market so to get started, you need a hook. My thought is to make it a neighbourhood based business and appeal to their sense of community as well as added value. Another one might be that I could offer house-watching when required as it's not out of my way and would only take minutes to do a walk-through.
     
  10. wantstolearn

    wantstolearn LawnSite Member
    Posts: 13

    doh! I called a guy I know the other day that has been in Lawn Care for 12 years to get some advice. I told him I didn't want to be known as a 'low baller' and asked him what he charged. He said $35 an hour is what he shoots for. Wonder if this is normal for the region I am in, or if I asked a 'low baller' for advice. :confused:
     

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