You win some you lose some

Dan's lawn

LawnSite Member
I found out almost all my customers are cheap skates this year. Raised my prices about $2 a mow on annual contract and they are crying foal. My weekly price went up $5 a mow and expected a little flak from that but not the $2 a mow. Oh well some kid will mow it for $5 or 10 for them. Good luck past customers!
 

Killavolt

LawnSite Member
Pretty much what BigJ said. As for how many visits you need, I am in Florida and lawn service here can be year round, you can tell who is going to want year round service when you pull up for a quote. I try and sell year round service which is weekly April - Oct and biweekly Nov - March. There's also a lot of yards that are biweekly service and don't need or want service in the winter. A lot of people here don't take them, I don't mind as I am still growing.

As for coming up with a number, once you figured out how much you need to make per hour and come up with the price of a yard, I take that price and multiply it by 41 visits and divide it by 12 months. That's just mowing. If hedges need to be done I factor that into the monthly cost.


so I just used $25/hr as what I personally need to be paid, and the end result of that calculation is 85....... is that $85/month?

How do you factor in something like hedges?

sorry I sound so dumb, I don't know why I find this aspect all so confusing.
 

BigJlittleC

Banned
Location
Chicago
so I just used $25/hr as what I personally need to be paid, and the end result of that calculation is 85....... is that $85/month?

How do you factor in something like hedges?

sorry I sound so dumb, I don't know why I find this aspect all so confusing.
At $25 per hour you'll find yourself way under paid.

To get your per hour charge you need to factor everything a business needs to run and make a profit. That includes a fair wage for the worker and the boss plus taxes and insurance. Then things like the equipment repair/ replacement, office supplies, the phone you use, computer, advertising etc. All these things have to be included in your rate.

For example minimum wage is $13 here plus taxes and insurance at minimum that hour of labor will cost the business roughly $16.25 per hour. That's saying you find a worker willing to be paid minimum wage. $25-$16.25=$8.75 left to cover overhead and profit. I would not be surprised to find your overhead to wipe$5-$6 off that. Then add uncle Sam with his hand in the cut and you be luck to make $0.75 per hour. Of course if you do the work you get minimum wage plus the owners stroke so don't forget that's separate. Cause if your only doing this for employee pay might as well become one and not have any headaches of running a business.
 

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