Should rates vary by area?

Discussion in 'Lawn Mowing' started by WHIPPLE5.7, Aug 6, 2007.

  1. WHIPPLE5.7

    WHIPPLE5.7 LawnSite Senior Member
    Posts: 958

    On this site it is often said that you are lowballing if you are working for less than $45-50 per hour. In the area that I live homes, insurance, taxes(property), wages, etc. are considerably lower than where many of you live and operate. My point is that many poeple around won't pay for or can't afford $50 per hour. I normally come in at $35-$40. That seems low to many of you I'm sure but my mortgage is less, my taxes are less, my insurance is less, and I'm very handy as far as instead of paying top dollar for new equipment I will locate quality items that less expirianced poeple have given up on because something was minor was wrong with it. Also when I buy new I always get the dealer connections and get it all at cost. I'd love to charge $50 per hour but the bottom line is knowbody else is around here and poeple just won't pay it. Any thaughts on how I'm currently operating is wrong or right. Open to advice.
     
  2. rockandroller

    rockandroller LawnSite Member
    Posts: 121

    I think you bring up a valid point. Cost of living varies greatly across the country, and that definitely affects what you are able to ask for compensation. Being thrifty with your equiptment is also a plus, but that shouldn't't mean you pass that savings on to your customers. Bottom line, charge what you can and determine your own worth.

    If your market won't tolerate $50-$60 /hr, then shoot for the top tier in your particular market. Just my 2 cents!
     
  3. SouthernYankee

    SouthernYankee LawnSite Senior Member
    Posts: 789

    We have guys down here cutting grass for $12- $20 a lawn, your prices are way too high!!! Mulch for $30yd possibly cheaper if you look around.


    Don't worry so much about the other guy, or you might find yourself cutting grass for under $20 a cut!
     
  4. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    Yes, prices should, and do vary alot. Different economic climates.
     
  5. barnard

    barnard LawnSite Senior Member
    Posts: 618

    You won't make it using 21's but with larger and faster equipment I bet you will. You'll be amazed(and wonder why you didn't get it sooner). Don't quote hourly rates to the customer. Quote by the job.
     
  6. MOturkey

    MOturkey LawnSite Silver Member
    Posts: 2,762

    I don't think it is wrong or right, just the way things are. Same reason my house is worth maybe 100 grand on a really good day, but would be worth 3 or 4 times that on either coast.

    I shoot for $50+ an hour, but in reality can only do that on smaller properties. On larger properties, it usually averages out to more like $40 per hour. I'm sure some guys are doing better, especially in the commercial end of things, but those are guys who have been in the business for 10 or 15 years. and, I'm sure, have done a lot of "weeding" with regards to their customer base.
     
  7. cpel2004

    cpel2004 LawnSite Bronze Member
    Posts: 1,415

    You must charge more for certain areas. Thats the American way however give them a little more maybe a news letter or something. Keep it within reason.
     

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