I dont chime in alot on pricing threads but here we go,
Everyone is jumping on this company but they are failing to ask him a few questions and pointing out a few things he has said to give advice on rather than just saying he's crazy for $100.00.
First things first:
1. What does your company need to gross per hour to remain within your set profit margin?
Factoring in the following:
>Fuel
>Labor
>Insurance
>Rent\Storage
>Comp
>Maintenance\Replacement Account
ETC. this is your over head without your profit margin factored in. This is calculated based on the total cost per year but to simplify it start with by the month costs, divide that by the hours worked in the month, that will give you a rough hourly rate, now you need to add your profit of what you want to make for your business. What i'm getting at here is everyone knows roughly how long a job will take them to complete so with that known you make it simple for yourself, you take what you have calculated as your hourly rate needed factor that into your knowledge of how long it will take for you to complete and bam theres your rate to mow the property for the most part.
2. You say it is 15 miles away, diesel here is $4.39 per gallon my truck and trailer gets 12mpg loaded and running so for me I will be burning lets say $5.00 in fuel each way for the job so theres $10.00. If this place is out of your normal route this needs to be added on the cost if its within your route you can factor it into your regular hourly overhead costs.
3. Now based off my business, we run 2 60" lazers and a 48" hydro wb both exmarks. Mowing we need to make $85 hour to stay profitable, We can do this lawn in a quicker amount of time than a 36" mower can but we are going to pickup the trash on the lawn because with our lettered trucks I as the business owner will not settle for having a lawn look ehhhh after where done. How long does it really take to have a guy pick up some trash while working. If its a trashy property build it into the price, mark up your rate for the place to account for this and move on. The last thing these commercial properties want is people hassling them about trash etc, if its on the lawn pick it up.
Personally i'd take on the lawn with the 36" mower if you can still make what you want per hour, what is the difference if you mow two places in that hour or one place in the same time frame at your same hourly rate, if anything your saving money because your driving lawn to lawn for your other accounts rather than staying at one.
Like what was said above bid it like you where using the 36" at your rate, then step up to a bigger faster mower at the same price now your cut your time in half, doubled your hourly output and are making money. Sorry for the long post but hope it helps, best of luck.
Jump in and bid the job
Dude, Fun stuff.
$85 an hour? WOOSH. that's BIG.
55-65 seems to be average with most guys doing the dollar an hour thing (60)
This just tickles me pink, because There was a guy on here last week ridiculing me for living in La La land were people are getting 55/hr for mowing :laugh:
Efficiency! where you at. Read this guys post.
15 miles away.
I guess that would depend on traffic how long that takes.
I figured in 10 minutes travel (assuming on route) 10 minutes is 1/6 of an hour.
his average was at $42/hr (for my math) so it's recovering $7 for travel.
Also note the kid is 16, and semi solo.
Over head isn't going to look like yours
you're shop rent is probably why your rates need to be as high as they are.
I was based in Easton CT, kept my stuff on a farm with my nursery stock, and lived there too
.
In Guilford you're probably not that lucky.
Trash is one of those things you just can't hang a number on.
could be three soda bottles and an empty pack of cigarettes.
Could be three bags of trash.
Lets look at what your numbers would probably be:
2.5 acres
im assuming a 60/40 split
60" does 60% of the mowing
60" will take 19 minutes to mow it's share
48" will take 21 minutes to mow it's smaller share
Lets say 15 minutes of travel (who knows it could be dense traffic area)
Trim/blow/trash patrol 40 minutes? is that fair?
95 minutes total
thats 1.58 man hours
That's $134.58
But you're also charging $85/hr for a guy to pick up trash and run a weed whacker and travel.
That seems awfully steep for the time.
It seems to me you have one rate, period (which many do)
But I ask you, what if you got a call and the customer wanted you to send a guy out to weed whack a hill and collect trash?
Would you actually quote him $85/hr?
at any rate
your price would likely be between $130-$150.00 AND you charge more per hour than anyone I've heard of on this board.
Even if you think it's going to take you 2 man hours.
that's $170
. not $200, Not $300.
AND that's accounting for picking up trash, that I didn't account for in the kids pricing guess.
I think if you told the guy "I'm going to charge you $35 to pick up trash every week" he'd say no. Im going to get someone else to do it.
As long as you showed up at the same day every week, the guy could have it picked up for you
I mean, if there is even that much to pick up.
Either way
mowing should be ONE price and trash should be another.
No one quotes prices to mow, pick weeds, and haul brush in one single weekly price. Trash shouldn't be figured in there as the one price fits all.
Because other companies like Brickman will come in, bid $100 and not care about trash.
so at the very least, quote $100 for the cut and $35 for trash (or $120/$15 whatever it works out to), that way when Brickman slides in, the customer can compare apples to apples.
Otherwise you've priced yourself out with unspoken principles.
and the property manager probably didn't even know you were picking up trash at all.
(this is why I like walkers so much
I just mow over most of the smaller trash and suck it up
only have to grab a pop can or two or a paper bag)