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Southeast pricing

Discussion in 'Business Operations' started by 2Sam2233, Mar 1, 2002.

  1. 2Sam2233

    2Sam2233 LawnSite Member
    Posts: 19

    I am just starting up. I have 4 accts counting a church/cemetery. I have done searches here on this site, and I see people getting an hourly rate of $35 to $60 per hour, but most of this business is east coast and northeastern parts of the country. I have only been averaging about $17/hr in Alabama. Is there anyone else out there in my region with insight? Am I too low or is the market that much different in this area? I would like to think I should be getting at a minimum about $25/hr. Thanks for this site and all the help, it is great. If anyone else is in my area drop me an email.

  2. Nebraska

    Nebraska LawnSite Senior Member
    Posts: 525

    You will not be in business long at $25 hr.
  3. smburgess

    smburgess LawnSite Senior Member
    Posts: 469

    I'm sorry, but I think $25 per hour isn't bad, specially if you have low overhead. I make a decent profit at $30 per man-hour. I'm not real big, but I do have 2 crew working now and during the summer usually go up to three or four.
  4. Nebraska

    Nebraska LawnSite Senior Member
    Posts: 525


    Glad you can cover your FICA,FUTA, SUTA, W/C, GL, Auto Insurance, Fed Taxes, State Taxes, State Sales Taxes, Phone, Gas, Repairs, Rent/Mortgage, Phone, Advertising & Marketing, Office Supplies, Internet fees, Equipment Costs, Trailers & everything else and still make a decent profit.
  5. B. Phagan

    B. Phagan LawnSite Member
    Posts: 95

    Mike, I agree with some of the others posters.......$25 per hour may be great money.............but only if you consider seasonality, your direct and indirect job costs as well as how much profit you'd like to have.

    START by knowing what a job will cost you........the selling price is determined by know the above as well as what kind of a profit you must have to feed your face, your company and your family.

    THE GOING RATE, whatever that may be could KILL you.

    Don't know how far you are from Atlanta but will be taking a swing through GA, SC, NC and Virginia starting this month with my "Money Maker Workshops". Check my site under events if this is of interest.

    Hope this helps.
  6. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    I would consider FICA and FUTA under Fed. Taxes...

    Phone was mentioned twice.

    State sales tax is a liability not an expense (not everyone has sales tax either)

    Not everyone has state taxes...we don't

    W/C is not needed here unless you have 3 employees...

    My point is that everyone's numbers are different. YOU have to figure YOUR costs to determined what you need to make to make a decent profit. Not someone elses numbers.
  7. wesLESCO48

    wesLESCO48 LawnSite Member
    Posts: 27

    Average rates in the B'ham, AL area are around $35-$45/HR.
    some lower, some higher. The type equipment you run, your efficiency and your route plays a major role. Your market
    will tell you how much you can charge.
  8. higherpower

    higherpower LawnSite Member
    Posts: 11

    The secret, if it is a secret, is not to be fearful of charging the right amount. If they say no, you never had it in the first place, and you should'nt want it either. Sooner or later you may feel you are not getting paid enough and began to do a sloppy job which could be bad for your reputation. I would rather have a reputation of charging too much than one who does unsatifactory work. I live in an area that one of highest unemployment in the country, yet I can get an average of $40 per hour. Just keep on asking and before you know it, you will have customers who will pay you right. Just do unto them as you would like them to do unto you.
  9. Nebraska

    Nebraska LawnSite Senior Member
    Posts: 525

    Thanks for disecting my post Alan! Underneath it I think you realize my point?
  10. garydale

    garydale LawnSite Senior Member
    Posts: 813

    I think you can see the main point: You have to know your costs.

    Work it out on a piece of paper, you will learn alot.

    Good Luck!

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