Are you pricing too low, or just not working enough?

Discussion in 'Lawn Mowing' started by wildstarblazer, Jan 16, 2018.

  1. wildstarblazer

    wildstarblazer LawnSite Bronze Member
    Messages: 1,061

    So you figured out how much you need to make per hour to be profitable but you still have no money left? Whats the problem? Not working enough hours or raise prices?
     
  2. Russell MiniTrencher

    Russell MiniTrencher LawnSite Member
    Messages: 10

    Part of the question also needs to be, "What is profitable?". Is it clearing just enough or is it a certain percentage?
     
  3. shifty98

    shifty98 LawnSite Senior Member
    Male, from Indiana
    Messages: 272

    Check the numbers that went into the equation. Go through last years spending to look for anything you didn't include in your calculations.
     
  4. sjessen

    sjessen LawnSite Platinum Member
    Male, from Knoxville, Tn
    Messages: 4,842

    It would help us help you if we knew a bit more about your situation such as gross sales, fixed costs, variable cost, etc.

    Do you have any large payments? What are you paying yourself? Things like that.
     
    KB Lawn Care and JLSLLC like this.
  5. GRANTSKI

    GRANTSKI LawnSite Bronze Member
    Messages: 1,302

    Yea tough to say. Some guys start with $1000 and grow little by little.
    Took me 3 years to reach $60k solo with a $3500 walk behind & little business debt besides my truck loan & regular maintenance. Some guys take out $100k in loans & price lower per man hour then the $1000 startup - cuz they need to "grow" faster. The lower hourly might be partially made up by volume. And The guys that take out big loans get a bigger return IF they succeed & price right.....but it will take a few yrs longer for them to see that return. Not many ppl can stomach hustling for 3-5+ years & making little $. And if they priced wrong they are REALLY screwed !!!
    So pricing per hour is always first. And not taking low hourly paying jobs just to fill you or your employees schedule. A guy with a ford ranger and 21"s can prob make $$ @ $45per man hour....but those rates could break a big company with large trucks & 3 ztrs on every trailer - no matter how many hours they work.
     
    Russell MiniTrencher likes this.
  6. Groomer

    Groomer LawnSite Bronze Member
    Messages: 1,678

    The "problem" is a mower today costs a little bit more than they did in 1991, but we buy them to cut the same property for the same amount we charged in 1991. lol Raise prices now, everyone! lol (yeah, right.)
     
    kemco, gcbailey and knox gsl like this.
  7. whammer33024

    whammer33024 LawnSite Senior Member
    Messages: 347

    sounds like the problem is either accounting or you have a spending problem
     
  8. wildstarblazer

    wildstarblazer LawnSite Bronze Member
    Messages: 1,061

    Yes spending . The cost of living is just too high. I may need to grow but scared to hire.
     
    sehitchman likes this.
  9. Bassyarddog

    Bassyarddog LawnSite Member
    Messages: 51

    You can raise your price if your area can justify the price increase but you have to be careful because you price yourself out of the market. You have to find your niche and stick with it some smaller company’s do high end residential work with big returns because they can give there personal attention where as if you have several crews you can’t be everywhere it just doesn’t work. If your working solo you should be able to make 80,000-100,000 per year if you have a tight route without killing yourself 40-50 hours week doing maint.
     
  10. bluetruck

    bluetruck LawnSite Senior Member
    Messages: 329

    i get what you are saying, and would be just as happy as you if i could raise prices to my liking. but at the same time a mower from 2018 cost a little more than a mower from 1991, it is also going to be much for productive than the older mower too, so it evens out a bit.
     

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