Pricing Estimation Formula Question

Discussion in 'Starting a Lawn Care Business' started by Keith P, Sep 28, 2004.

  1. Keith P

    Keith P LawnSite Member
    Posts: 28

    I recently found this AWESOME site a few days ago. My formula for a rough bidding price is the total square foot of the property x 2 then divide that number by 1000. Example a 120x70 lot is 8400 sq feet x 2=16800. 16800/2=$16.80 Let's just say $17.00. Depending on the number of trees to work around, amount of trimming etc., I adjust accordingly. I only do residential property now so I don't know if it would apply to a commercial size property.

    Do you guys recommend a flat rate ie. up to 9000 sq ft. $25, 9001-12000 sq ft. $30.
  2. oneandonlyjojo

    oneandonlyjojo LawnSite Member
    from NY
    Posts: 125

    yea i dont like that formula sounds to cheap. just go to the house and see what the deal is and price it with your brain on how hard it would be
  3. Randy J

    Randy J LawnSite Bronze Member
    Posts: 1,124

    Keith, I prefer establishing a minimum/hour that you need to make - based on your costs/hour. Then you can look at the lawn and figure how long it will take you and multiply that by your costs/hour. That'll give you your fee. For example, if based on my costs + profit I need to make $45/hour, and I estimate the lawn will take me 1/2 hour, then I know I need to charge at least $22.50 for that lawn - actually I would establish a minimum and charge according to that. However, if this lawn will take me 2 hours to complete, and I know I need at least $45/hour, then my price becomes $90 for that lawn. Know your per hour costs first and you'll have much more success in bidding lawns. If you want more info on determining your costs/hour, let me know.
  4. Axl

    Axl LawnSite Member
    Posts: 233

    I would greatly appreciate any info you could give me on determining cost per hour. Thanks
  5. Randy J

    Randy J LawnSite Bronze Member
    Posts: 1,124

    Axl, if you have Excel I can send you the template I used for determing cost per hour. Basically you figure how many hours you'll work by estimating the season in weeks, then how many hours per week, to get your season total. Then you divide your annual fixed costs, such as advertising, equipment cost and depreciation, etc., and divide by the number of hours you came up with. Add your variable costs, such as fuel, labor, etc., to this and you'll have a good estimation of what it costs you per hour to operate. You'll need to make some assumptions, but it'll be fairly accurate. Email me at and I'll send you the Excel template. If you don't have Excel, I can copy it to Word and email back to you - but you'll have to calculate by hand.
  6. Macvols

    Macvols LawnSite Member
    Posts: 54

    Best information I have gotten from this board!!!!
  7. out4now

    out4now LawnSite Bronze Member
    from AZ
    Posts: 1,796

    1.00 a min is a rough estimate. You're better off going the way Randy suggested. It would be nice if he'd put the formula in another post so we could reference it for future searches. You really need to know your costs because after the break even point profits begin but to pay for the lifestyle you want it is nice to know how much after the break even point.
  8. Randy J

    Randy J LawnSite Bronze Member
    Posts: 1,124

    Ok. When I have a little time, I'll try to paste it to this thread.
  9. Grass Gator

    Grass Gator LawnSite Member
    Posts: 122

    $1.00 per minute is what I use most often.

    I am conisidering going to sq footage x rate of .003

    Example....9500 sq ft x . 003 = $28.50
  10. Randy J

    Randy J LawnSite Bronze Member
    Posts: 1,124

    Sorry, it won't let me upload an Excel file. If anyone has any ideas on how to get it on the board, I'm listening.

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