Fall/Winter Clean up Services: Overhead+Cost+ $$ per hour= price?

Discussion in 'Starting a Lawn Care Business' started by shortgrass01, Sep 17, 2006.

  1. shortgrass01

    shortgrass01 LawnSite Member
    from SC
    Messages: 160

    Hi- It's me again.. would you charge the same rate per hour as you would while during the summer mowing ? For example: Removing leaves/pinestraw would you still rate it as $15-20 per hour? would you still use the equation

    Overhead+Cost+ $$ per hour= price?

  2. YardPro

    YardPro LawnSite Gold Member
    Messages: 3,570

    if you are only charging $15-20.00/hr you will slowly be going bankrupt.....

    but to answer the question.. yes...
    you add your overhead to your labor cost THEN ADD PROFIT MARGIN....

    PMLAWN LawnSite Gold Member
    Messages: 3,534

    Formula is right (but yes--add profit) but #'s are off-- if you sell work for that price come to my area and I will keep you busy 24/7
  4. BSDeality

    BSDeality LawnSite Silver Member
    Messages: 2,849


    your overhead costs stay the same no matter what you are doing
  5. DBL

    DBL LawnSite Silver Member
    Messages: 2,219

    double lawn mowing charge plus $40 dumping charge
  6. noseha

    noseha LawnSite Senior Member
    from MI
    Messages: 554

  7. ed2hess

    ed2hess LawnSite Fanatic
    Messages: 13,988

  8. YardPro

    YardPro LawnSite Gold Member
    Messages: 3,570

    they bank on added services, and make up thier losses there.

    a lot of large companies use mowing as a loss leader.

    as for thier overhead, it could very well be less than a solo...

    here's how..

    with a solo, all overhead only has one person to support that overhead.
    with larger companies they can spread overhead between a lot more people.

    You get 3 guys per truck/equipment setup, you are spreading fuel, insurance, etc. between the enitre crew, instead of having one guy have to pay for it all.

    also large companies usally really have thier numbers down ot a science. They know EXACTLY how much it will cost them to do the job, and will add on 15-30%. With large commercial accounts there is less windshield time, fuel expense, etc... We have large accounts that we have at about $28.00/hr and do rather well at them. We get at least $20K/year in add ons (some years almost $100K). We also have been there for 15 years and know EXACTLY how much time it will take, so we do not need a cushon on the hours.

    the statement that ED2HESS made is why it is so important for YOU to know your numbers... just becuase someone else can do a job for a certian amount, that does not mean that you can.....
  9. JJLandscapes

    JJLandscapes LawnSite Senior Member
    Messages: 682

    whenu people shoot out this $60 an hour is this in your pocket after all expenses or gross?
  10. shortgrass01

    shortgrass01 LawnSite Member
    from SC
    Messages: 160

    Hi Guys... sorry for this post. I am learning this site quickly.. however, I thought I deleted it. I learn how to search key words. Found out this post has been ask MILLION TIMES. I agree I was under cutting myself. I vow not to under cut my fellow LCO. However I am luckily I have a good amount of capital. Me and my partner are x-sales men of 10+yrs; so marketing and PR will come very easy. we will have low over head with newly paid equipment.

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