We use a markup of 2X the cost. Now if your just planting a few plants then this won't work. look at bidding the plants at cost then adding a planting and delvery charge to cover your costs,labor, and profit. <p>----------<br>paul<br>
We have used a couple of times on smaller jobs the pricelist from a high price supplier. They sell mostly retail and have planting crews as well. In their retail book they tell the customer the plant price and install price. MOst time on 10 or less bushes we use that price plus 12% to cover taxs and waste. I have found that to work for us at least. Plus most times this price comes out higher.
If you are a small company with limited overhead, the 2x cost price will probably work. Remember to charge for mulch installation, soil preparation and amendments in addition to the plantings. Larger companies usually have higher % mark-ups but they buy in large quantities from growers so the end result is often about the same.<p>----------<br>Lanelle<br>
This has to be the worst way of deciding a price that I have ever heard. What does the nursry price of plants have to do with your price? The plant price is only one component in the job. The plant price is independant of your markup, labour etc Buy a book like Nillsons quick before you bankrupt yourself! You have a different price from mine because of different efficiencies and overhead. I used to price by multipying costsx 2 and found out that it was way low, but like I said it might be fine for you. You'll never know until you figure out costs and necessary markup. There's plenty of work out there, make sure you are getting a good return on your investment. Good luck.
Kermit,<br>I gave this as a starting point, not law! I can price my work this way because I have the manpower, equipment and resourses to buy in large quanities. This reduces my cost but I still use the book price. Also depending on the plant material some plants are priced at 3 or 4 time what the book lists. If I buy a 100 3" white ash at $175 ea. and install them for $350 each, my gross profit is $175 now I subtract the 15 minutes it takes my men to install the plant and the $5 it cost me to have it transported to the job, not counting overhead I've still made $160. Now the end of the year comes along and the nursery gives me 15% of what I spent there my overhead is covered my net $160 not too bad. <br>Are my prices way too low, not by the bid sheets that I get every week, My numbers are right in the ball park for the work that I do.<p>----------<br>paul<p>
I learned an interesting lesson from my mother a couple years ago. She has run a retail store for over twenty years, and while our industries are very different, there are still all kinds of things I learn from her.<p>There are some things that you sell that you can charge well over 2x what the cost is to you (called 'keystoning', for you business majors out there), just because they are perceived as more valuable by the customer. Most items my mother sells are usually marked up 2-3x the cost. Some are marked up much more, just because she knows the customer will pay it. <p>Isn't that, after all, what we're after, charging what the market will bear? <p>Some plants I keystone, others I charge (much more) according to customer perception - you have to figure out what that is for your market niche. But first and foremost, you need to get a handle on your costs - find out exactly how much it costs you to plant a shrub - plant cost, gas to get there, labor, G&A, everything. Every company has different costs, every company has different positioning strategies, every company president has different views on acceptable ROI's. You just need to figure out yours. <p><p>
I have played with installs before and starting to do more and must get a better handle on it.I'm looking at a job now,140 ft.of Forsythia as a hegde,I can buy 4-5'plants at 16.00 each,should I be charging 32.00 or 48.00 for each plant installed? The 48.00 seems high to me.I was thinking of charging for bed prep. and mulch by its self.Also what do you think the spacing of plants sould be for this job...3ft. or 5ft?Thanks to all for your help.
jrb, spacing should be considered on how fast you want the plants to fill in. 5 ft is plenty for forsythia, but 3 feet will work better if you want to fill them in faster. 16 sounds a little high, they are usually around 10-12 by me (contractor price)<p>If you want to plant them fast, get like a 16 inch auger, or just dig a trech and throw them in. Don't worry too much about planting them perfectly, thats why I said throw. They are like a dam weed. You could take them, slam the ball against the ground a few times, and cut them off at about 3 inches and still have them live. Planted about 150 last year, and the drought wacked them all. I cut half of them down to the ground, and now, they are already shooting up all kinds of growth. <p>steveair
Why price this job by the plant? Start by figuring your labour. Is this soil a bugger to dig? Loys of stones? Every job is different that is why I said earlier that I don't price by the plant. There are too many variables to price that way. Figure out your costs, add a healthy profit,and away you go. You won't worry about replacing any that croak because you have taken that into account. Good luck.