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2010 Program

BS1190

LawnSite Member
Location
midwest
This will be my second season with pesticides and herbicides. However last, I only did it for the last half of the season so this is my first full season.

I wanted to know what you guys think of my program so far. This is the basic structure.

It is based on the following factors:
Barricade cost per M= .52
Tripplet SF cost per M=.20
Merit cost per M=1.23
Fertilizer cost per M=.90
I had a 25% markup on the cost of all chemicals.
Stop fee = $25

I also want the customer to choose how many app I do for the season. The compitition does the same in my area.

So what it breaks down to is on a 5000 sq ft lawn, for 5 apps it comes to be about $35 per app or $175 for the year.

Does it sound like my prices are in the right ballpark?
 

Young Bros

LawnSite Senior Member
Location
Spirit Lake, IA
In my area you would be the absolute cheapest company.
 
OP
BS1190

BS1190

LawnSite Member
Location
midwest
In my area you would be the absolute cheapest company.
Good to know. I'm in IA too, (not close to Milford, so not your competitor) if i added $10 per app would that bring me into the medium range? or is that still too low?
 

Young Bros

LawnSite Senior Member
Location
Spirit Lake, IA
Yeah that would be in our range. The bigger the property, the less per sq ft. At our company we use higher end ferts and 4-way weed controls to be different than our competition.
 

Volman

LawnSite Member
Location
West Tn
I would try to sell a standard prog. if possible. makes the routes & paper work a lot easier. plus it's better $
 

whoopassonthebluegrass

LawnSite Platinum Member
Location
Hyde Park, UT
With all due respect, how are you planning to make money? If you GROSS $175, by the time you pay for chemicals, truck, insurance, equipment, uniforms, advertising, cell phones, postage, yard stakes, licenses, etc... you'll be DAMNED lucky to make $75-$90 per customer.

With THAT in mind, how many customers are you going to need to provide yourself a living AND put away for that retirement package you're not getting by working for yourself?

I'm not being mean or condemnatory here, but I want to make sure you're looking at the big picture when you do this.

Just because your competitors are doing something doesn't mean it makes any sense at all. And playing the pricing game in our industry NEVER makes sense.

Just my two cents... which, ironically, is right on track with your profit margins... :)
 
OP
BS1190

BS1190

LawnSite Member
Location
midwest
With all due respect, how are you planning to make money? If you GROSS $175, by the time you pay for chemicals, truck, insurance, equipment, uniforms, advertising, cell phones, postage, yard stakes, licenses, etc... you'll be DAMNED lucky to make $75-$90 per customer.

With THAT in mind, how many customers are you going to need to provide yourself a living AND put away for that retirement package you're not getting by working for yourself?

I'm not being mean or condemnatory here, but I want to make sure you're looking at the big picture when you do this.

Just because your competitors are doing something doesn't mean it makes any sense at all. And playing the pricing game in our industry NEVER makes sense.

Just my two cents... which, ironically, is right on track with your profit margins... :)
and that is exactly why I posted it, to get feedback. thanks.

So would you agree that $45 per app on a $5000 sq ft lawn is more in range?
 

Young Bros

LawnSite Senior Member
Location
Spirit Lake, IA
Our program is 1-6 applications (weed & feed). We charge separate for insect and disease control. Some companies put down Merit with the 3rd of their 5 applications. The problem it takes care of is white grubs, they put it down too late for bluegrass billbugs. That is why we charge separate for insect control and put down something like allectus as a separate application. We usually put it down with our round 2 to save a trip. Takes care of all insects so its better for the customer and makes us more money so good for us.
 

whoopassonthebluegrass

LawnSite Platinum Member
Location
Hyde Park, UT
and that is exactly why I posted it, to get feedback. thanks.

So would you agree that $45 per app on a $5000 sq ft lawn is more in range?
Definitely closer at $45. I won't bother doing any size app for less than $50, just b/c it isn't worth my time. Our profit margins are just so meager. My mantra and common response to people looking for deals or looking for pricematching, etc is, "If I'm gonna go broke, I'm gonna doing sitting on my butt watching TV - not doing charity work."
 

Young Bros

LawnSite Senior Member
Location
Spirit Lake, IA
Definitely closer at $45. I won't bother doing any size app for less than $50, just b/c it isn't worth my time. Our profit margins are just so meager. My mantra and common response to people looking for deals or looking for pricematching, etc is, "If I'm gonna go broke, I'm gonna doing sitting on my butt watching TV - not doing charity work."
Agreed. Our min is $40.
 
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