Discussion in 'Lawn Mowing' started by genesis landscapes, Apr 14, 2005.

  1. genesis landscapes

    genesis landscapes LawnSite Member
    Messages: 13

    I am sure to hear it from you all but i want some input. I read here about the low-ballers and I want to get something off my chest. If you charge 35.00 to mow, trim, blow. and Joe's LOC comes along and do the job for 25.00 because he has cheaper expenses say it cost him 5.00 per lawn so 20.00 is profit for him and job only took 1/2-3/4 hr sounds like Joe is the sharper business man than I. I feel we shouldn't put this person down he should get praise he is making 20.00 1/2hr try doing that at the factory or with that college degree. Am I wrong or right? I really think I might drop prices to get the work and cut my profit margin. I'd rather get 20.00 than nothing. call me a low-baller but at least I would be making money not here crying :cry:
  2. plateau lawn care

    plateau lawn care LawnSite Member
    from georgia
    Messages: 195

    You are kinda right if you can pay for your license and insurance with no problem then if your a real business you will need to pay taxes usually quarterly so their goes your profit margin thats why we have to charge more. You can charge half of what we charge but you will have to do twice as much work to make the same amount of money as us. Not bashing on you though just be careful if you dont have insurance .. You will have to deal with the IRS if you get caught though their mean unless your legite. Good Luck
  3. marko

    marko LawnSite Senior Member
    Messages: 963

    There is more too it than equipment costs. There are licenses, insurance, taxes (business, personal, workmans comp etc, etc, etc). The legal person is hard pressed to spend an hour on a property for $20 and put $15 in his pocket. To me, the definition of a scrub is someone who does not claim income, pay taxes, have insurance, or is not licensed to apply chemicals. They charge $20 I have to charge $30...Of course they can do it cheaper, even with the same equipment costs!
  4. grassmanvt

    grassmanvt LawnSite Senior Member
    Messages: 906

    Here's another thought on the situation.There are two big differances in a lco with a couple crews and a solo guy, one, the guy with a couple crews is now more of a manager/crew leader/ salesperson which decreases the billable job time/work acomplished. A solo guy is dealing with less of this as well as usually not directly or even indirectly being compensated for those contributions to the business.Now for my other point, using your sample numbers you are pulling some of the direct costs from the gross and calling the rest profit. This can be looked at two ways. If you asign a value to your time on the job(as you would with an employee) ie. a wage for yourself, then deduct that from "gross profit" then look at your profit. I'm not saying your method won't work but, if you ever plan on having employees or expanding the business you are setting yourself up for failure. Plain and simple, that's why it's so hard to make the low-ball method work. Sorry for the long post but that's how I see it.

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