General pricing

Discussion in 'Bidding, Estimating and Pricing' started by Rubber City Landscaping, Feb 13, 2019.

  1. Rubber City Landscaping

    Rubber City Landscaping LawnSite Member
    Messages: 13

    This is going to be my 3rd summer landscaping i don't think im pricing most of my yards too cheap but i think its only cause they are so small and I have a $30 min(i think needs to go up). Im currently a one man show but im trying to price like i have a crew so it will be easier for me to transition to a crew. Id like to have a crew leader starting at 20hr and then a helper that rides with him at probably 10 or 15hr so if I have a yard that takes 30min to cut trim and blow off id have $15 in labor it probably costs me about $10 to have my equipment so that brings me to $25 that doesn't hit our minimum so i then tell them i can't go below $30. But i know Im missing out on my self and the business how much markup should i have for me and then how much markup should i have for the business 10% each 20% each do i only mark up once and split the profit between me and the business i know im missing a markup just not sure what it should be.
  2. OP
    Rubber City Landscaping

    Rubber City Landscaping LawnSite Member
    Messages: 13

    Well no one has answered my question so let me rephrase. if i run a crew $20hr for lead and $10hr for helper how much per hour should i charge the customer. also what margin should i add to that. I know my expenses and how to calculate that in to pricing i just don't know how to factor the labor into it.
  3. jetson

    jetson LawnSite Member
    Messages: 55

    I’ll throw u a bone here. If u don’t have the overall revenue to pay out 1200 a week plus the tax they cost ur over ur head. Charging customers by the hour to me personally in this scenario doesn’t make sense because now ur only pricing to try to cover labor and make a profit. The beet way to do it is
    1. Increase revenue by adding more accounts
    2. Only hire help if u absolutely need to .. not sure about others but getting people to show up is difficult
    3. See number 1

    Growing is hard but rewarding and if u can’t afford them now why even bother with the headache. Think about paying out an additional 40 in labor vs ur income now vs realistic future revenue plus all other expenses before u pay for help.

    So for example you will need to add 50 accounts which produce 1000 dollars a year at least to cover those expenses not including taxes..

    . just some insight.. i run 3 man plus myself.. it took the life of me to hire anyone because the offset of positive profits vs lost money on wages
  4. jetson

    jetson LawnSite Member
    Messages: 55

    in regards to actual pricing a lot of peeps on here have minimums.. ours is 35 regardless if it takes 2 mins.. but u can’t price by the hour in ur scenario for lawn mowing because u have make at least profit. I’ve never charged an hourly rate for mowing because there are to many variable to account for. Some yards have a ton of trimming for example. We aren’t trimming a property for an hour for 60 dollars.. it’s a lot of work. You be under bidding everything.. ur customers will love it.. ur pocket book will hate it..

    I’ll give u an example of a commercial property I mow. It’s takes 2 hours with 2 guys.. we charge 450.00. It’s a Decent size property running 2 60s ztr. It’s mostly mowing and it’s wide open. If I charged by the hour of covering my labor even for 3 guys at 30 and hour that’s 180 dollars.. if I wanted to make 60 an hour on top of that for myself it’s 310.00 this is why I personally don’t charge by the hour but maybe I’ve done it enough to just have a basic idea of how much time it will take.. me.. and what I want to make off of it.. hope this helps.. a lot of other guys have different theories which are helpful too..
  5. LawnSite Fanatic
    Messages: 5,930

    No you would have right about $20 labor into it. You have to add in work comp, un-employment insurance, ssi, plus General liability ins.
    I think your equipment cost is a bit high though, $5 at most for half hr.
  6. Doc8406

    Doc8406 LawnSite Fanatic
    Messages: 13,725

    Hey George.. what is a "ur"?
  7. Andrew H

    Andrew H LawnSite Silver Member
    Messages: 2,672

    Your/ you’re / you are

    Btw 10 bucks an hour is dirt for manual labor out in the hot sun, pay them a little more and give them bonuses every couple months or so, perhaps even gifts or dinners etc, act like your employees are everything to you, because they are.
  8. Doc8406

    Doc8406 LawnSite Fanatic
    Messages: 13,725

    Thank you so much, you're very kind in responding!

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