Pricing every cent!

Discussion in 'Business Operations' started by lawnguy1219, Feb 1, 2019.

  1. OP
    OP
    lawnguy1219

    lawnguy1219 LawnSite Member
    Messages: 28

    Being new to the industry, I learned the hard way yesterday that I need to stick to certain areas for business. Since I’m starting out I thought I should take any business I can but some jobs were more that 20 miles from each other which should have been common sense that I would waste too much fuel and time and I went against my better judgement and did it anyway. Only to find myself stuck in traffic all day and then ending my night around 7:30 after dropping my trailer off. Rookie mistake haha.
     
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  2. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 16,334

    You can use anyone’s lawn

    Been doing this 30 years
    Nothing I said is new
    Someone else was doing it 30 years ago and I learned it from them
     
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  3. Jake the grass guy

    Jake the grass guy LawnSite Senior Member
    Messages: 350

    very well said! just dont forget taxes.. hate taxes.. lol
     
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  4. Jake the grass guy

    Jake the grass guy LawnSite Senior Member
    Messages: 350

    theres alot of good guys to follow on youtube that you can learn from as well as on here. Also im not sure if many guys have listened too or implements the principles but a good audiobook to read is profit first. that will help you visualize your breakdown of your finances. Also on the efficiency of your business.. if i were to go back and start from the begining i would figure out where i was going to have my boundaries and stick to them.. you might grow a little slower but you will be way more efficient. besides if your in a smaller area.. potential customers see you more often. good advertising :p
     
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  5. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 16,334

    That’s in the list of guessing everything you have to pay

    I’m not going to type everything out
    Would take too long and that’s why I have excel spread sheets for that.
     
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  6. guitarman2420

    guitarman2420 LawnSite Senior Member
    Male, from Midlothian, VA
    Messages: 736

    You are way ahead of the game. To me, the biggest cause of failure in the industry, most people who fail have no idea what their costs are.
     
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  7. guitarman2420

    guitarman2420 LawnSite Senior Member
    Male, from Midlothian, VA
    Messages: 736

    That is a way to be out of business! Just because someone else is charging a certain price, does not mean you will make a profit. You have to know how much it costs you per hour to operate - mine is @ $38 per hour.
     
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  8. Oxmow

    Oxmow LawnSite Bronze Member
    Messages: 1,092

    I believe partially that the comment of charging what your area will allow is correct. Only because you can’t just say that you have a CPH of 50$ and say “I want to make 20% profit and then just charge 70$ per hour. If your area won’t support 70$ per hour you WILL go broke.

    Especially first starting out you need to know BOTH factors. What your numbers are AND what the market will bear. And if one doesn’t fit the other, you have to make changes.
     
  9. magna111

    magna111 LawnSite Senior Member
    from NJ
    Messages: 487

    True, but if it costs you $38/hr because you’re 18, have no kids and live in your parent’s basement ... if the market will bear $50/hr then you’re leaving money on the table and undercutting everyone else.
     
  10. guitarman2420

    guitarman2420 LawnSite Senior Member
    Male, from Midlothian, VA
    Messages: 736

    I'm not talking about what I charge - that' what it costs me to do business. The difference between what I charge and what it costs me is my profit. I try and bill out all my contracts at $60 an hour.
     

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