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How much do you mark-up fertilizer?

Discussion in 'Landscape Maintenance' started by BROWNS LAWN CARE, Sep 13, 2012.

  1. BROWNS LAWN CARE

    BROWNS LAWN CARE LawnSite Senior Member
    Posts: 615

  2. cgaengineer

    cgaengineer LawnSite Fanatic
    Posts: 15,782

    We do t sell fertilizer, we sell an application/service.
    Posted via Mobile Device
     
  3. humble1

    humble1 LawnSite Silver Member
    from MA
    Posts: 2,495

    I second that you are paying for the fertilizer the broadleaf weed control, blowing the prills off the walk and the advise I give you.
    Posted via Mobile Device
     
  4. BROWNS LAWN CARE

    BROWNS LAWN CARE LawnSite Senior Member
    Posts: 615

    ok, i guess i don't understand. i am also in the computer business and when i buy new parts for clients, i mark up the price 15-20%.

    does the lawn care industry not work this way? each time a product changes hand in america, the price goes up...
     
    Last edited: Sep 13, 2012
  5. Snyder's Lawn Inc

    Snyder's Lawn Inc LawnSite Platinum Member
    Posts: 4,541

    I dont mark anything up I make my money on my Labor
     
  6. BROWNS LAWN CARE

    BROWNS LAWN CARE LawnSite Senior Member
    Posts: 615

    ok, well maybe i am misunderstanding how the system works.

    my understanding of the american economic system is that it is greedy and everyone involved in touching a product or service marks up the price....
     
  7. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Posts: 2,132

    yes there is a mark up. But in this industry, particularly fertilizer it is not a set percentage. Instead most companies have a sliding scale they charge by the square foot or 1000 sq feet. The way my sliding scale works is that I have a minimum price for 3k sq feet, then there is an additional charge per 1k sq ft. Once the lawn hits 20k sq feet that additional charge becomes a little smaller. At 40k the additional charge becomes a little bit smaller again.

    The reason why a general markup does not work is because each round of fertilizer is going to cost different, fert w pre-m is a different cost than fert w merit, fall fert is another price, winterizer is another, spraying weeds do=uring the visit or a service call is all figured in to the price as well. Most customers do not want to pay a different charge each visit but would rather pay a set price each time, to do this you simply add up all of the projected costs for the season and devide by the number of billing cycles to get an average.
     
  8. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Posts: 2,132

    are you spraying weeds as well? I don't see why someone would pay an inexperienced applicator to spread straight fert when they can get a liceansed company to spray the weeds as well.
     
  9. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    Are you buying a large bag of fert from home depot for $45?

    Do you buy from a mom and pop garden center and you get that bag at a 10% discount?

    Do you buy from a commercial/wholesale dealer for $25?

    Paying retail can't markup unless you charge too little for your labor.

    How can you mark up more then the 10% discount you get from the garden center? Can't.

    I buy from wholesaler, I charge fert cost plus $10 to cover time to get the material. Then my labor has always been the same rate as mowing. Yes that means the $45 box store bag I charge my customers $35 + my labor. Never give fert and labor pricing. Give on inclusive price. They don't need to know how much labor vs material.

    My prices for fert are competitive.

     
  10. BROWNS LAWN CARE

    BROWNS LAWN CARE LawnSite Senior Member
    Posts: 615

    thanks for this explanation. the yard in question i estimate to be around 16K-18K sq ft.



    and no i will no be spraying for weeds, i am not licensed and i told her that. however, she was left with the understanding that i could probably spread a weed-n-feed, but i have since found out i cannot do. just straight fertilizer without a license.

    so there is a chance she will no longer want to hire me. i will be talking to her on Monday.


    i would buy the large bag. will have to check local stores, can probably get as good or better price.

    i would have to be doing more volume for wholesale prices.

    thanks
     

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