Pricing (Get the keyboard out)

Discussion in 'Business Operations' started by Dewiese94, May 9, 2013.

  1. Dewiese94

    Dewiese94 LawnSite Member
    from Iowa
    Messages: 19

    As many of you guys have pointed out pricing is a difficult topic to cover based on location, wealth of area, your dealer prices, and many other factors. So, after much thought I wonder how many people break down overhead, employee cost/wage, insurance business and vehicle, and vehicle or machine maintenance.

    Basically what I’m saying is when you price out your jobs do you figure insurance cost per day and vehicle maintenance per day? Or what are some things that you wouldn’t think of to add to the bidding cost list? It’s time for me to get nerdy!

    Supply costs are easy to figure but I’ve heard some people mark their supplies up. One gentleman said 30% if he has it and maybe more if he has to go get the items. I can see where a markup comes into play as you have to pay someone to get them or go yourself.

    Also, a company I worked for once was charging $35 per man hour and roughly paying an average employee $12 which would give you 65% profit on return for that hour worked. So, what type of margin do you look for when billing out per an employee?

    Some industries have set profit margins on everything, but I don’t think I’ve ever heard the lawn care world talk numbers and margins. Just numbers

    What do you think????

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