Pricing

Discussion in 'Lawn Mowing' started by Sword, Nov 24, 2005.

  1. Sword

    Sword LawnSite Member
    Posts: 17

    I’m preparing for next spring, and am trying to be more consistent with my pricing. My question is how do you quote for lawn cutting contracts? Is there a % mark-up, after all direct costs are factored? I’m having trouble finding out exactly what my COST is?

    I pay my two employees $10 each an hour =$20/hr ?Labour.
    But How would I get a dollar figure for my:
    -1990 Chev ¾ Ton, 2 wheel drive
    -2005 Gravely Promaster210,
    -2 Commercial Self-Propelled
    -2 FS85 Stihl Trimmers (3 years old)
    -1 BR400 Stihl Blower
    -14’ Tandem Electric Brakes Trailer
    -Fuel/hr

    What do you think my cost, would be per hour, obviously $20(labour) + how much more for equipment? And then what type of mark-up?
     
  2. BSDeality

    BSDeality LawnSite Silver Member
    Posts: 2,849

    those two employees cost you more than $20/hr!
     
  3. stevesmowing

    stevesmowing LawnSite Senior Member
    Posts: 847

    generally if you pay someone $10 it is actually costing about $15 by the time u pay their FICA and workers comp etc... As for expenses look at how much you spend a year in gas, repairs, oil changes etc. and then look at how long you expect a mower to last and how much it cost and divide that up. Also figure in insurance etc. For a solo business my costs average out to about 40%. This includes Trucks mowers gas insurance etc. Oh and I like to buy new toys so this sometimes ups my cost.
     

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