Newbie...how to price?

Discussion in 'Pesticide & Herbicide Application' started by Greenohio, May 15, 2006.

  1. Greenohio

    Greenohio LawnSite Member
    from Ohio
    Posts: 19

    Ok we are new to the industry, but have been doing fert. for my self and my job for many years (school district). I am going through all the routes to become licensed, just wondered how you all go about quoting your customers?

    Need some help please! ;) Thanks!
     
  2. yardprospraying

    yardprospraying LawnSite Member
    Posts: 147

    what are you going to apply?

    fert, pre & post?

    how many apps?
     
  3. GreenUtah

    GreenUtah LawnSite Senior Member
    from SLC, UT
    Posts: 866

    well, like any business, you figure your costs (fert/chems, vehicle, insurance, drive time, gas, equipment, advertising, taxes, accounting, storage, labor, etc. etc.) add profit, divide by sq. footage that you have sold and now you have a minimum dollar amount you must have per sq foot to avoid collapsing your business. Compare that to local quotes and see if you are above or below those averages. If you are above, better look where you may be able to cut unneeded expenses or get out and sell more to spread fixed costs over a larger area. That's really all you need to know about pricing your services. :)
     
  4. Greenohio

    Greenohio LawnSite Member
    from Ohio
    Posts: 19

    We are applying 4 apps a year

    What we need to know is do you price by sq footage?
     
  5. Ric3077

    Ric3077 LawnSite Bronze Member
    Posts: 1,113

    Price by the sq. ft of all turf areas and cut them a deal if they go with a 6-step over the 4-step.
     
  6. Greenohio

    Greenohio LawnSite Member
    from Ohio
    Posts: 19

    Ok so you go by sq footage, what about do you charge per sq foot approx?
     
  7. Ric3077

    Ric3077 LawnSite Bronze Member
    Posts: 1,113

    for a small 5k sq ft you should charge at least $35-$40 if they do a 6 step...more if a 4 step...depends on your market and your overhead. But that is a ballpark...
     
  8. Norm Al

    Norm Al LawnSite Bronze Member
    Posts: 1,227

    $9 to $11 per 1000 sq foot
     
  9. yardprospraying

    yardprospraying LawnSite Member
    Posts: 147

    What you should do is figure a stop fee, that is charge xx.xx amount for stopping at yard and pulling out hose or spreader. That will give you 2-2.5k for starting. Then charge per sq. ft. after that.

    For example if you do a 4 step program and the yard is 2k charge $25-$35.

    If you do a 6k yard, instead of stop fee, just charge $60.00, or .01 per sq.ft.
    For 6 step give discount, charge $55.00 per app.

    One thing to keep in mind, is that your first 2 app. will probably have pre-emergent, and that is your most expenisve apps. of the year.

    You can also pick up the phone and call a local company and get a quote on your yard. Most of us give free estimates. Try to stay within a few dollars of your local companies, and do a good job and you should retain customers for following year.
     
  10. Grandview

    Grandview LawnSite Gold Member
    from WI
    Posts: 3,251

    You need to find what the market. Then decide if you can make money or figure a way to be profitable at it. You may find the market to be all over the place. Some services will be very low and others high. Some customers are willing to pay for personal and excellent service. Do not try to be the lowest, you will not win. You also need to know your costs. I have walked away from many jobs after I figured my product costs they were no longer worth my time.
     

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