Discussion in 'Lawn Mowing' started by wkshank, May 17, 2001.

  1. wkshank

    wkshank LawnSite Member
    Messages: 15

    I was wondering why some of you have odd cents in the price you do a yard for? If when you do an estimate for someone and you come up with some cents in it, why not just round it up or down to make it a bit easier.
  2. guntruck

    guntruck LawnSite Senior Member
    Messages: 527

    Never really paid attention but i know we dont ever have odd cents on our prices we just give an even price. The only thing i can think of is other services with the odd cents on the dollar due to charging procedures.

  3. Premo Services

    Premo Services LawnSite Bronze Member
    Messages: 1,516

    Mabey it is in a state where they have tax on the job, and I don`t think you can charge more than the tax is.;)
  4. joshua

    joshua LawnSite Bronze Member
    Messages: 1,226

    just got donw talking to my tax lady and i have to start charging sales tax. so i'm gunna have some odd ball prices. never thought i would be this big this soon that i would have to charge sales tax. hope the customers take it good
  5. wkshank

    wkshank LawnSite Member
    Messages: 15

    Never thought about sales tax because in Il. there is no tax on a service. Was just wondering because I know of a few lawn services and a pest control company here that has all sorts of odd cents on different accounts. Drives the pest control guy nuts he has to collect odd cents. He does set up the accounts.
  6. wkshank

    wkshank LawnSite Member
    Messages: 15

    Sorry, should be the pest control guy does not set up the accounts
  7. jjfehr

    jjfehr LawnSite Member
    Messages: 76

    I have never heard of paynig tax on a service once you reach a certain gross figure. What are you talking about?
    I had a business before that I have since sold, and when I needed to make it legit, I told them that they would have to pay tax, I split it with them, that way they felt like they were getting a great deal,
    "Hey this guy is paying half of the tax for us" It helped them swallow the increase, it told them that I was sorry for the increase and it wasn't dictated by me, and that I was willing to split the diff. I felt that this would help me retain more clients than if I just told them that I was increasing prices by 5 1/2% /order 1 month after a 3% increase. Maybee you could try this when telling cust. about increases!
  8. Randy Scott

    Randy Scott LawnSite Bronze Member
    Messages: 1,915

    joshua wasn't charging tax! Were you just paying it out of your pocket ? Your profile says you have been in business for five years. Does this mean you were doing work for cash? Does this mean YOU are a scrub, dodging the tax laws and regulations? Please, explain.
  9. Just Turned Pro

    Just Turned Pro LawnSite Member
    Messages: 109

    The easieast way I found to deal with sales tax is to "pre-figure" it into the price that is quoted. Example... the customer is told $30.00 for a service. That is what they pay but the invoice reads $27.62 (for the service) + $2.38 (sales tax) = $30.00 total price. Of course make sure you set the $2.38 aside for uncle sam.... and most importantly make sure you leave yourself enough $$ profit margin!!

    Spend a little time and make a laminated chart that lists the cost+tax=total for the amounts that you charge. It will be some work but it will come in very handy in the field. :cool: :D
  10. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Messages: 1,415

    What? When we are giving an estimate we tell them how much "our" services are...the sales tax is the states money...I don't figure in the states money in "my" estimate to the customer. Our estimate sheets specifically tells you that the estimates does not reflect sales tax. Sales tax shows up on invoices after all services are calculated for the month.

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