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Starting a company

Discussion in 'Landscape Maintenance' started by Bleed Green, Sep 1, 2009.

  1. Bleed Green

    Bleed Green LawnSite Bronze Member
    Messages: 1,514

    I am thinking about starting a small company next summer and doing mulching and weeding, and stuff like that. What do you guys charge per hour? Or do you charge by the job?
  2. spin2098

    spin2098 LawnSite Member
    Messages: 131

    Each job is different I try to charge around 60.00 a hour. Normally I can spread 3 yard of mulch by myself in a little over a hour.hope that helps a little!
    Posted via Mobile Device
  3. Bleed Green

    Bleed Green LawnSite Bronze Member
    Messages: 1,514

    yes that helps thanks. I was not sure what a fair price would be for labor where there were no machines involved. I was figuring on doing everything with hand tools. I was way low though thinking more in the range of $25-30 per hour per man on the job.
  4. baddboygeorge

    baddboygeorge LawnSite Bronze Member
    Messages: 1,249

    When your in business for yourself, you have to understand what all comes out of the figure . Take in consideration , taxes , insurance, gas, insurance, advertising, tools, etc. 50-80 dollars per hour sounds expensive but really when ya break it all down ya might clear 25 bucks profit. Please dont under price your labor it will bite you in the ass. Be smart an be competitive!!
  5. Smallaxe

    Smallaxe LawnSite Fanatic
    Messages: 10,082

    Whenever you run a crew or even a single employee, all of your overhead expenses grow geometrically. I run solo and can come out with 25 bucks profit by charging 26. :)

    I charge hourly for the use of any machine, hourly for my labor, and hourly for constant operating expenses.
  6. dvog

    dvog LawnSite Member
    Messages: 91

    100 bucks per yard installed.you should be able to make a profit with that figure.
  7. 93Chevy

    93Chevy LawnSite Fanatic
    Messages: 37,804

    Depends on the job. I'm getting better at estimating time, and therefore I can provide an estimate the beginning of a job, and my final figure for billing is usually pretty dern close.
  8. golfnpreacher

    golfnpreacher LawnSite Member
    Messages: 123

    How much you charge is based on a variety of factors.

    1 - How much are your fixed expenses? How much do you have to pay for insurance, for equipment payments, office expenses, etc.
    2 - How much are your variable expenses?
    3 - How much do you need to live?

    For example, my house is paid for, so I would not have to charge to cover a mortgage payment, but if someone is paying $1600, they have to make $400 a week. So, I could charge less than they do because I have less expenses to cover. Another could have a truck payment and payments on their fancy mower that amount to $800 a month. Again I don't own anything on my truck or my equipment. So again I can charge less and still make the same amount. Just using these two figures... one guy HAS to make at least $600 a week to pay his bills, both business and personal. On the other hand I don't have to make a dime to cover those same expenses. So if I mow 10 lawns at $40 -- I've got $400 -- the other guys still needs $200 to break even.

    This is one reason why so many young guys get started, they live at home and have no expenses. They think they are making good money until winter comes and they still have to pay for the equipment they financed but have no lawns to cut.

    So, as to your question, what do you charge, figure up what you need to make a living and work from there.

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