minimums

Discussion in 'Pesticide & Herbicide Application' started by BLL, Apr 9, 2003.

  1. BLL

    BLL LawnSite Member
    from MD
    Posts: 89

    I have a few new yards this year that are less then 7000M and i feel that if i go with just my normal per app fee that im gonan loose money. Do any of you gusy charge a minmimum app or has anybody tacked ona service call amount + a lower per app rate? I cant see me making any money charging 12.00 to doa 4000M yard after drive tiem load and unload filling spreader and actuall app.
     
  2. I charge everybody a stop fee, plus $??.?? per 1000

    6
     
  3. BLL

    BLL LawnSite Member
    from MD
    Posts: 89

    whjat do you base your stop fee on? Drive time+unload time+ fill time + load time or somethgin else? trying ot get a feel for thsi cause ive never had to do this before,
     
  4. rkk95

    rkk95 LawnSite Member
    from west PA
    Posts: 165

    You need to have a minimum price, and then add to the price per 1000 square feet. my minimum price is $34.40 that price includes up to 5000 square feet and then I add about $4. 50 per thousand square feet after that.
     
  5. BLL

    BLL LawnSite Member
    from MD
    Posts: 89

    how did you come to that number?
     
  6. 4 app program

    find cost of material for all stops and I mark it up. Now I include labor to apply. That is my price per 1000 per year.

    Stop fee is my profit, and cost of doing business.
     
  7. rkk95

    rkk95 LawnSite Member
    from west PA
    Posts: 165

    That number came to be over the last 30 years of slightly raising the prices every two to three years, and I am a little higher that most other companies in my area, but we are doing this to make money not to make the world beatufil like some of the other companies around here.
     
  8. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Posts: 1,712

    Stop fee plus per K price, min, 4k. Stop fee is time spent loading, unloading at beginning & end of day, driving, cleaning and daily maint of equipment etc. Basically all of the non-job time. Also track your job time. Takes some estimating, guestimating at first followed by tracking minutes on a watch and avg over stops per day.

    I've found that with in reason that the first 5k are the slowest on any job no matter whether the job is 7k, 15k or 57k. There are the same drives, walks, little areas to deal with.

    So my base charge is for a stop charge and slow on the job production time and material for the 4-5k lawns. Once you get past that, each K of production goes pretty quick as an avg.

    If you are not pricing like this, you can lose work becasue of over pricing or lose money from under pricing or both!
     
  9. PR Fect

    PR Fect LawnSite Bronze Member
    Posts: 1,075

    I agree with Harold. Did the same and my minimum is $34. $4.20 per K on the big jobs. Was glad to hear I'm in line with someone doing it 30 years. I try to not sell a set number of applications. IPM is what I push, and they let me decide when and how many applications per season. They only get what they need, not the same as everyone on the trucks route. I sleep well at night, maybe because what is stuffed under my pillow.
     

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