I think you are right about that Josh. That is why some prices sound crazy..they work in one part of the country but are not adequate in another.
It is important to me to charge what I can though...I dont want to be the cheapest but I dont want to price myself out of the market either.
Your local LCOs will be much more helpful with this than we can. Try to network with them - they will appreciate it because you will not be low-balling their biz away from them.
Going not so good here. I think its my area. Maybe some other guys from Oklahoma, Texas, or Missouri can chime in. Of course this is my first year at, but I have seen more then I'd like to experiece thus far. As said many times before, these people only want to pay pennies on the dollar for large quantities of leaves being removed. And it seems $40/hr is too high? WTH. People around here are comfortable with $10-$15 max, rather it takes you 30 minutes or half the day. Im beginning to think its a waste of time, not to mention dusty, dirty, hard to breathe, and itchy. I know some of you guys make some killer profits from fall leaf cleanups, but doesnt seem to be the case here. At least I haven't seen it yet. Maybe I should stick with the grass.:laugh:
For those of you who think I'm low I want you to reconsider. I have no employees. I don't haul leaves to the lawnfill. All leaves are left onsite. Most of my jobs take the same amount or less time than cutting their grass. I use a $250 Little Wonder blower and a BR600. On 1 (one) job I mulch the leaves down into the turf. My fuel costs per job are around $1.50, maybe $3.00 worst case. It costs me less money to handle the leaves than it does to cut the grass so where's the harm in charging the way I do? I am making more money on leaves than I do on grass. Oh, and did I mention that I'm on the high end of the scale for rates?
For those of you who think I'm low I want you to reconsider. I have no employees. I don't haul leaves to the lawnfill. All leaves are left onsite. Most of my jobs take the same amount or less time than cutting their grass. I use a $250 Little Wonder blower and a BR600. On 1 (one) job I mulch the leaves down into the turf. My fuel costs per job are around $1.50, maybe $3.00 worst case. It costs me less money to handle the leaves than it does to cut the grass so where's the harm in charging the way I do? I am making more money on leaves than I do on grass. Oh, and did I mention that I'm on the high end of the scale for rates?
Ya, the cost of living is much higher in the Northeast than down south. Especially for homeowners. Still we are all taxed the same by the Feds. I haven't cleaned up one yard yet. No calls coming in. Too many in it and the leaves are slow to fall so far. Probably start doing regulars next week so they will be ready for Thanksgiving. Then again for Christmas. Hopefully some newbies will call. Last year was terrible for newbie calls. People around here may pay you big money one time to get up leaves, but after that most will find an alternative cheaper plan. I won't cut my rates no matter what. Leaves and the dust take a big toll on me and the equipment. So its either big money or forget it.
The economic downturn for textiles and manufacturing industries around here has played a major role in the lack of newbie calls and repeat business. This has effected the retail market too where consumers have less money to spend... then you have those gas prices..
I'm in Connecticut which is one of most expensive places to live and do business. I send two guys out for $100 hr. plus dump fees to do leaves. We go to a yard usually three times to keep up with the leaves and keep the house looking nice. We also have to tolerate high gas taxes. Reg gas is at $3.25 and diesel is at $3.55. and they're still going up.
The weather is also killing us, Only got out two days this week. Rain and wind have been too much for work. This weekend we have to kick it into high gear, before the S work gets here.
It all depends on what type of equipment you have. Since our blowers are so powerfull we charge smaller yards by the job. so if we can blow it off in an hour and make 250 it makes it much better. But if your solo with a backpack and it will take you 5 hours that sucks
Provide me what I have here and I'll do it all year long. My house (1600 sq ft all brick rancher, 3 bed, 2 bath, fireplace, formal dining room, 1 acre, 1024 sq ft garage) is paid for, my cheap insurance (State Farm BTW), I buy used trucks (around 40k miles, usually around $13k) etc. I also search around and I am very patient about buying equipment. I got my 60" 28 EFI Dixie with 29 hours for $4500. $250 for my Little Wonder, it's old but has very little use. I also just picked up a brand new Brinley tow behind yard vac for under $350. 8 HP, 8" hose and a 40 bushel catcher.
You can do this type of work and do quality work if you work it right without having a ton of overhead.
Provide me what I have here and I'll do it all year long. My house (1600 sq ft all brick rancher, 3 bed, 2 bath, fireplace, formal dining room, 1 acre, 1024 sq ft garage) is paid for, my cheap insurance (State Farm BTW), I buy used trucks (around 40k miles, usually around $13k) etc. I also search around and I am very patient about buying equipment. I got my 60" 28 EFI Dixie with 29 hours for $4500. $250 for my Little Wonder, it's old but has very little use. I also just picked up a brand new Brinley tow behind yard vac for under $350. 8 HP, 8" hose and a 40 bushel catcher.
You can do this type of work and do quality work if you work it right without having a ton of overhead.
Richard, I hear you, my house is paid for as well, along with all my equipment which is on the small end of the scale. You guys can't compare prices from 1 part of the country to the other. For instance, my 1400 sq ft 3 bed 2 bath house with 2 car garage goes for about $95,000 here in Tulsa. How much would that go for in CT? I am sure way way more. I try to get around $60 an hour for mowing and mulching, which is good money in Tulsa, at least it is to me.
I hear ya. My house is a 3 bed, office,21/2 bath, 2 car garage on a little over an acre. Going rate around here is about $350k and $4k a year in taxes.
A solo operator charging 35$ per hour(worked) in a seasonal area could make a lot more take home pay working for an employer with bennies. This figuring the cost of health Insurance, fuel, self employment tax etc.
You figure in your drive time, buying parts/repairs, talking to customers, maintenance, loading and unloading etc. You are not really even making $35 per hour.
You have to factor in the seasonal aspect of the job and the droughts. True you can only charge what your area averages, but I sure wouldn't undercut that average even if my over head was lower.
I guess it comes down to how ambitious a person is and that plays an important roll.
You have to plan for the future and try and sqeeze every dime out of what you could possibly make. You are not always going to be young/healthy and therefore able to cut 8+ yards a day solo. You have to think of investments and a retirement plan and likely health insurance increases
Usually in my are of ct we get 300 to 350 for a fall clean up of a 1/2 acre lot. I know things vary by region but its good either way to have these discussions out there. Yes we talk about sqft. price, per acre price and of course the hourly charge. It seems no matter what the discussion it always comes down to what we are charging, never mind the area. I don't want to be digruntal on what others are charging but it is good piece of mind. I'm finding there is no "true" standard and we are all getting the most we can whether it be mowing, clean ups, pruning Etc.. On the positive all seem to be doing well and surviving the drought and some bad customers.
IN RI and Ma, the avg is $35-$40 and hour per man, but to a point, I think the first 2 or 3 are that and then its like 20 an hour each extra man. Even in every state it depends the neighborhood you do, some pay more than others. Best bet...figure out what you want to make first clear, then figure out your expenses, then add them up and thats an idea of what you need to charge per hour. Your best customer is the one who says for you to do the job and just send the bill after. This way you can do the job and figure what you need to charge after.
Im solo and only haul leaves for 2 of my 24 leaf accounts. I mulch the rest. I charge $40 per hour and have a $50 minimum. I rarely need an entire hour to finish. I am solo...no employees, workers comp, payroll taxes...I run a 3yr old Deere Quik Trak that is paid for...this is my 2nd job so health insurance is covered...
I see guys out and about with 3 or 4 helpers, an expensive dump truck, leaf loader, ZTRS, new blowers....
Im sure they can kick *** and take names...but I bet you at the end of the day they dont make much more than me...
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