price per minute, what do u think

Discussion in 'Lawn Mowing' started by P.Services, Feb 24, 2008.

  1. P.Services

    P.Services LawnSite Fanatic
    Posts: 6,322

    im trying to come up with a price im going to bid my upper class residential lawns and commercial properties at for the up coming season.

    this crew will run with a 20' enclosed and a 3/4 ton truck pulling it. it will run two 61'' turf tigers and one 52'' walk behind scag. blowers,whips, and edgers of course. both workers cost me $30 per hour, the truck im figuring to burn $10 an hour in gas avg., the mowers im figuring $7 an hour avg. all other things like 2 cycle gas, string and blades im figuring $3 an hour.
    $30- labor
    $17- fuel
    $3- supplies

    $50.00 an hour my direct cost. im thinking of setting my price at $1.60 a minute from when we unload to when we load, thus a lawn that takes 30 min will be billed at $48.00.

    keep in mind this is a top notch crew, all new trucks trailer and mowers. clean cut employees dressed like we are going out to dinner with a minimum of 4 years experience (we move very fast but do a1 work), no tats, cussing,or smoking. baggers on both mowers at no extra charge, strippers on both mowers also. i take 5% off for prepays and i pay 15% of any customer's fert&squirt bill (we dont offer that service). with any referral that stays with us for at least 2 months the original customer gets 2 mowing's free of charge.

    what do you guys think of this rate?
    to high? to low?
    punch the numbers and let me hear what you think?
     
  2. P.Services

    P.Services LawnSite Fanatic
    Posts: 6,322

    come on guys!!!! what do you think
     
  3. joshco84

    joshco84 LawnSite Senior Member
    Posts: 411

    Sounds about right to me, i get roughly 45 dollars for a yard that takes an hour with one guy. So imho your price is just right.
     
  4. Lawnut101

    Lawnut101 LawnSite Silver Member
    Posts: 2,254

    So, you're going to bill out an hourly mowing rate, instead of a per cut charge? That's fine, I'm just wondering. Do you know what other businesses around you charge for mowing? Have you thought about charging a minimum, such as a half hour? Are you gonna charge $1.68/min each guy or total? Sorry about all the questions, I'm just trying to figure this out. You have a very nice business plan/formula there.
     
  5. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Posts: 4,993

    What do I think?

    I think some of you guys are breaking this stuff down way to far.

    Price per minute? There is no way, even if you come up with a figure, that you will ever be able to stick to it. When it comes to cutting charge by the square foot not the amount of time it will take.

    Second of all why are you "giving" all these things away? Not charging for bagging? Free cuts? Youre losing money. Plain and simple.
     
  6. P.Services

    P.Services LawnSite Fanatic
    Posts: 6,322

    no total. i dont know yet if im going to tell the customer im charging you 1.6 a min. this is just the formula im going to use to make sure im making the kind of money i want to on the jobs. so if im mowing a lawn that takes me an hour to do and we are only getting $55.00 for it then i can know really fast that we need to drop it. this spring i am going to put gps on the trucks so i can track exactly how long it takes at each job and then the Secretary can check each week to make sure we are still making money. its easy when you are the owner mowing and you know how much each job is making so at all times you know if the good is profitable or on the edge or what. when my crew doesn't know what we charge and the secretary doesn't know how long it takes the crew its easy to be mowing jobs that really need to be droped and replaced with more profitable ones. with the gps amd then formular and someone to check it once a week i know we will always be making $ and i can get a good idea of the cash flow reall fast from a quick look at a graph.
     
  7. P.Services

    P.Services LawnSite Fanatic
    Posts: 6,322

    i have lawns that are so thick they need to be triple cut or i can cut it once with the bagger on in a third of the time and charge a fair price. it barley cost me a thing to dump the bags in the truck at the end of a mow so if it makes us faster, the lawn look better and the customer happy then we all win. lets say my avg. law is $40 so i have to pay $80 to them basically for getting me a new customer, with a referral they are normally a customer that is gona stay with you because they have allready heard good things about you and they are normally very close to your current customer so that helps me make even more money.
     
  8. lifetree

    lifetree LawnSite Fanatic
    Posts: 5,369

    It sounds to me like you've really got a well thought out plan for how to price your services as well as monitoring your operational performance !! I think you should give it a try and if it doesn't seem to be getting you where you want to be, then you should be willing to modify it accordingly. Good luck !! Not to mention that the price sounds very competitive to boot.
     
  9. P.Services

    P.Services LawnSite Fanatic
    Posts: 6,322

    i think my price may be a tad bit high but thats ok i will try to sell myself at that rate because im in biz to make good money not work my a$$ off just to get by. thats the nice part about the formula i can adjust it by 10 or 20 cents if i need to. we just get so many guys on hear always asking about pricing, if they could come up with a formula that worked for their company they would know that they where making money and how much how fast.
     
  10. jsaunders

    jsaunders LawnSite Bronze Member
    Posts: 1,781

    My .02

    To LOW- Esp with 2 guys and your equip. I would try to get $60 for that lawn. I like $2.00 per min.

    I can usually make this working by myself.
     

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