Hourly Rate

Discussion in 'Starting a Lawn Care Business' started by Down East Prop Serv, Sep 15, 2013.

  1. XC skier

    XC skier LawnSite Member
    Posts: 208

    When estimating mowing prices you have to think about more than just the time to actually perform the service, namely your windshield time. If a $40 lawn takes you 30 man minutes to cut but, it takes you 5 minutes of drive time off your route and you've got two guys in the truck well now you've got 30 + 10+ 10 or .83 man hours which now takes you from $80 a man hour to $48. The size of the property is also a major factor. A large property can be charged at a lower rate because you have more production time in comparison to a small property. So $60 to $80 per man hour is not really what it first appears. Don't cut yourself short.
     
  2. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Posts: 7,561

    Ive made close to 90/hr before… Ive also made 38/hr before.

    Route density has a lot to do with your actual, realized $/hr.

    lots of windshield time it will be lower, less it will be higher.

    You certainly don't PLAN on charging 90/hr OR 38…. but when the chips are down and the work is done… sometimes that's the actual math, you win some, you lose some.

    I'd day most people TRY to get 60/hr…but by far 45/hr is the most common result in the end.
     
  3. Tuttled

    Tuttled LawnSite Member
    Posts: 151

    I only use walk behind equipment, aerator, power rake, edger, mowers and handhelds. I'm in this part time (2-3 days a week), I figure fixed costs; insurance. business licences, workman's comp, office, accountant, dump fees (flat yearly fee), ect, it costs me $12 to show up at your door. I have calculated that it is another $10/hour ($5 fuel and maintenance, $5 depreciation) to operate the equipment on the average; this includes depreciation and fuel as well as gloves, garbage bags and everything else. The only extra cost is when edging I will go thru a blade about 100 to150 feet but that extra cost is covered in the pricing. Remember even using a shovel or a rake or broom costs money, as they need to be purchased, hauled and replaced when worn out or broken or left behind. Don't forget your truck and trailer costs including depreciation costs. So I show up and cut your lawn (30 minutes) for $40 dollars it costs me $12 to show up plus $5 equipment cost. I have made $23 dollars before taxes. Allowing for 10 minutes travel time between cuts an 8 hour day is about 12 cuts. 12 x 40=480, 480-(12x12)-(12x5)=x 480-(144+60)=x 480-204=276 276/8=34.50/hour before taxes. Now let us figure this for a five day week. 276/day x 5 = 1380. Add in an hour a day for dumping clippings on your way home and 3 hours week maintenance and 6 hours answering calls and doing estimates after hours on $1380. $1380/(40 +14) =y 1380/54=y ...$25.5/hour=y. Add in a fertilizer application or a quick cut of one of your customers neighbors, 3 times a week adds $3 to your hourly weekly average up to $28.5/hr.
     

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