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Discussion in 'Starting a Lawn Care Business' started by CRQualityMowing, Jan 9, 2012.
I do not offer it, but I have a guy I refer my clients to when I see they have a dog.
My guess is that wouldn't work out to good!
My advice is to figure out what your true costs of doing business and then set your pricing accordingly. If someone tells you to bid $60/hour, how do you know your cost of doing business isn't greater or less than the next guy? You don't! Wouldn't it be nice if your costs were indeed less than the next guy and you could charge less in order to land more jobs? If you take someone else's word for charging $60/hour, you'll never know.
This thread is titled "How to bid commercial accounts for real", but it applies to everything in the landscaping field. Read the thread, then read it again. It will truly help.
Great thread will a lot of good knowledge and information! Thanks.
Good advice, keep in mind that someone has to pay for the down time between jobs, so if you do a job for $30.00 and you are there 30 minutes and it takes you 15 minutes to get to the next $30. job your hourly rate has shrunk to $40.00 and hour if you use the $45 and hour rate, it has shrunk to $36.00. The important part is to know what you are making, and does it work for you!
You guys are right; there are way to many things to consider with regards to sitting an hourly rate.
I'm still not sure how the "drive time" works out. If may last customer is 15 minutes away from the next, is the time passed to that guy? I'm not sure how that would work out. My 60.00 mow becomes 75.00 (just for the sake of discussion). I have been looking at drive time as something that has to be minimized to the max, and my work route is carefully planned and modified so as to make it as efficient as possible, but I have never really charged for it. If two exact yards are 60.00, does one get charged more if the drive time from the last customer was longer than the other?
I may be over thinking this but I'm weird like that.
I brought the drive time up to show the importants of know what you are and are not making. If you figure your rate at $60.00 and hour you actually have to spend 10 hours cutting grass to make $600.00 - so unless you have a string of customers on the same street that could represent a very long day. So, it becomes very important to carefully organize your daily work.
Using an hourly rate for lawns greatly reduces your potential income per hour and will have a huge impact on what you make per year.
When I first started out, I would mentally compare prospective lawns to ones that I already had and knew how long they took and whether I felt I had bid them right. Unfortunately it's partly trial and error at first, and the detail work is what will usually get you time wise. I recommend you set a minimum as well.
Absolutely, my two favorite customers are side by side, cut, whack and blow $80 in 50 minutes. Anthing I do after that, say trim bushes is all based on by hourly rather with a 1/2 minimum (two bushes 15 minutes = 1/2 hr.) So I am there for 65 minutes and its $110.