Question on pricing squirt & fert.

Discussion in 'Pesticide & Herbicide Application' started by LIBERTYLANDSCAPING, Jan 12, 2006.

  1. LIBERTYLANDSCAPING

    LIBERTYLANDSCAPING LawnSite Bronze Member
    from Indiana
    Posts: 1,283

    Hello to all, not looking to be the SOB who looks for everyone to price his services-but for some input. I know what my costs are for fert & squirt apps. but I want to make sure I'm in line with others. I know that cost of product can vary by area, and so does everyones overhead. I'm in northern Indiana with average lots being about 17,000 s.f. not including house/drive etc. What are some going rates for a property such as this, being flat, and open? Would be using a 5-step, with a granular pm. Also do most average out seasonal price, and bill monthly, or do you charge as you apply? Thanks for all your input ahead of time!
     
  2. indyturf

    indyturf LawnSite Bronze Member
    from Indy
    Posts: 1,873

    my price would be $76 per app. I bill after each application.
     
  3. The Ranger

    The Ranger LawnSite Member
    from NE Ohio
    Posts: 208

    3-3.35 Per M + a stop chg depending on your density and your product cost. Product costs should be no more than 20% of your charge
     
  4. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    Where did you come up with 20%?
     
  5. LIBERTYLANDSCAPING

    LIBERTYLANDSCAPING LawnSite Bronze Member
    from Indiana
    Posts: 1,283

    I can't seem to break past 35% cost of product-at least with Lesco 2006 pricing??? Are we paying too much?:confused:
     
  6. J Hisch

    J Hisch LawnSite Senior Member
    Posts: 952

    Then get off their program. I think a big mistake alot of LC companies make is that they buy brand rather than percent of active ingredient. Get to know you active ingredients instead of brand names, then go to local Co-op and buy supplies. Ours here is the cheapest around, over anyone. Yes Round 1 will more than likely be 35%maybe even higher. But look over your whole program. Such as round 4, 5, 6, should be the real money makers.
     
  7. turf hokie

    turf hokie LawnSite Silver Member
    Posts: 2,744

    I think your cost of product ratio will depend on what type of work you do. My ratio is more towards 29-31% but that is b/c I do a lot of large commercial work which drive my margins down. To give you an idea there are sites that I have that I can get 18-20 acres done in a day with 2 men. Obviously I don't get the same price per sq ft as I do at Mrs Gold's house that is only 4,000 sq ft. If I was all residential I would have a better ratio.

    All I am saying is that 35% may be high and worth looking into cost of product but look at what kind of work you perform also.
     
  8. The Ranger

    The Ranger LawnSite Member
    from NE Ohio
    Posts: 208

    20% should be your cost for the yr. If your up around 35% you might not be charging enough for your service or maybe you are paying too much for the product. It all depends on how much product you buy. Small users are going to pay20-30% more than large users. This might drive your costs over 20% but keep your prices up. Small companies should be able to provide better service a maybe charge a little more. The 20% comes off my finc statements.
     
  9. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    Well your still throwing around that 20% alot but you still have not told me how you came up with 20%.

    Did you read in a book or just made it up? :)
     
  10. The Ranger

    The Ranger LawnSite Member
    from NE Ohio
    Posts: 208

    The percentage is off of our monthly financial statements. We also track our product costs daily & figure what percentage of daily gross receipts the product used costs. The daily is much more accurate. If we buy too much product and it carries over into the following year will throw off the percentage on the statement although you can back that amount out when you take an inventory. Each round will vary in % because of the different costs so the 20% is the yearly number compared to gross. Example; Add up your gross receipts and add up your product costs, daily, weekly, monthly...whatever. Divide cost of product by gross receipt = %. We don't do a lot of low price commercial work and are density is very good. More travel time, lower cost work, low density will all impact the percentage cause it impacts the gross receipts. Hope this helped you....
     

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