What are you charging right now?

Discussion in 'Irrigation' started by rvsuper, Sep 4, 2002.

  1. rvsuper

    rvsuper Senior Member
    Messages: 930

    I am thinking of raising my price per head for installation. This is my second year at this, and I'm at $35 for it right now. Should I raise or lower? I get pretty steady business during the season but it gets busy in the fall becasue everyone who wants a new lawn gets a system in. Thanks in advance
  2. dforbes

    dforbes LawnSite Member
    Messages: 195

    Are you saying when you figure your bid you figure total heads then multipy it by $35.00. This doesn't seem like a good way to figure jobs. Even if I did it this way $35.00 is way low in our area. I didn't look at where your from, if your not to close I would be happy to give you my formula but don't want to post it here in case the competition is looking in. Let me know if you want an e-mail.
  3. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Messages: 1,712

    You need to be around $100/head but do not sell or estimate this way. It's just for ballparking.

    Most systems I do run about $30/head for just the materials. Labor, equipment, overhead and profit plus sometimes the plumber to do the connection make up the rest.

    Tell me where this $35 comes from?

    I just priced a job today on bare dirt but messy and rooty. 19 Hunter I 20 rotors with swing pipe, alt pie etc, 4 pgv valves with water proof connections, 380' 1.25" main, Proc-C controller with miniclick and one module, 420' 13 conductor wire, 1" Watts 800m4FR PVB, flags, primer, glue and a misc $25 charge for inicidentals and the materials were $839 incl tax. NO, idon't give the customer the materials price. That is $44/head.

    Then I estiamted 36 man hrs with travel, truck stocking, layout, production on the job @ $45/hr = $1620 labor, equip etc to install = $85/head. package pesented to client @$2,460 or $129/head.
  4. John Gamba

    John Gamba LawnSite Fanatic
    from ct
    Messages: 10,812

    If Your Steady At your Price. raise It To where you feel You Still will Get the work and Make more Money. Five to Ten Dollers More Per Man. Then Next year go Five More.

    We All Didn't do it Over Night. As some think.

    Good luck:D John.
  5. SprinklerGuy

    SprinklerGuy LawnSite Bronze Member
    Messages: 1,778

    Every time I see someone flatly say "35 per head" or "500 per grass zone" or anything resembling this....per square foot is another one........I CRINGE. How can you possible charge by the "piece". Whatever it may be?

    Raise your labor rate.....know your costs, all of them. When you bid a job you should know what your costs are per hour for overhead on the crew you are sending as well as the job costs.....mark up the parts and charge your labor and then add your profit. Only you know what that is!

    Having the irrigation knowledge is only part of the battle. The business end is Much More Important in my opinion. Some irrigation companies seem to know very little about either of these.....this hurts the industry. Be careful!
  6. Mataman

    Mataman LawnSite Member
    Messages: 83

    HBFOXJr, I wish I could charge that much $$$ here in the panhandle of FL. I'm currently putting in a system with 15 I-20's, 44 4in prosprays, 8 dv's and a SRC900i for the low low price of $2400. The customer said I was high by $200 but came highly recommended by all his neighbors so he's taking "a chance" so he says.

    I have a total of 39 in with an estimate of 6 to go..
  7. DanaMac

    DanaMac LawnSite Fanatic
    Messages: 13,226

    Just don't put in a $3500 system for $2400. Make sure you give them a $2400 system. Find some ways to cut costs, not necessarily cut corners though.

    I have a 6 zone system were putting in this week, 22 PGPs and one drip zone, for $2700.
  8. Mataman

    Mataman LawnSite Member
    Messages: 83

    but the only problem is, is that I am generally the high priced guy in town. I get cut under cut alot. There are tons of fly by nighters here. Just last month I went to go fix a system that some joker started to install by running a 3/4 line down the middle of the yard then ran several extensions of flex pipe up to 20ft and had several tee's. The contractor told me he wanted to see the coverage and a few squirted out 2 or 3 feet. He got $100 for his time and sent him away. He was also using that good quality K-gro stuff. He would've been better off with a hose and a rotor.
  9. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Messages: 1,712

    Ya don't ever give without getting. Don't worry about what everybody else is doing or charging. You gotta do what you gotta do. If it means you only sell to 5 out of a hundred people that call so be it. You just gotta figure out how to weed out 80 of the most worthless ones on the phone and go see 20 good possibilities. If you close 25% of what you see, and not worry about closing 50% or more of the calls you get you will be better off.

    There is this BIG misconception about "I can't get that here". Well markets and costs do vary somewhat but you know Mercedes Benz, Lexus, Ford, Dodge all sell stuff all over the country the same way for the same prices. You think the manufacturers sell to dealers for lower dollars in the I can't get thaT HERE AREAS??? You think you can pop up a Benz dealership anywhere an make a go of it???

    Heck NO. Why isn't there a McDonalds at every cross road in America??? Because they know they can't make it everywhere and pick their spots. Why do all the car dealers and fast food places congregate around the same spots. Because that is where the action is and that is where they need to be to compete.

    A lot of you guys just don't realize that what you want to do to make a living doesn't have a wit to do with whether folks can afford to buy it at the price you NEED to sell it for to make a profit.

    So, If you can't sell it at a profit or can't sell enough to make it a viable business proposition at a profit, ya better go to plan B.

    This ain't "build it and they will come". The green industry is no field of dreams. It's a race track where the rubber meets the road and you better be ready to run when the flag drops.
  10. SprinklerGuy

    SprinklerGuy LawnSite Bronze Member
    Messages: 1,778

    I have never heard the Mercedes Benz analogy....of course in Scottsdale they are selling Ferraris so I don't have that problem!

    Well said, Foxx

    We will once in awhile settle for a job that isn't exactly to our standards, but for the most part, 99% of the time, we will not do it any way but our way. Helps us sleep at nite. And make a profit. 2 really important things.

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