Is the Price Right

[RRS]

Done some checking with a couple of other guys in this area, one has been doing this for 12 years, the other 4, they said I was in the ballpark. Charge much more than that around here, & residentials will just mow themselves, or hire what you guys call scrubs & lowballers. For commercial accounts the going rate is higher, not sure how much. Will have to check on that.

It's absolutely not possible to make more than a few dollars from the job in question at $50/cut. Unless you don't have Truck, storage rent/mortgage, cell phones, office phones, office supplies, commercial liability ins, commercial vehicle insurance, workers comp insurance, equipment maintenance, office utilities, vehicle maintenance, tools to buy and replace, trailers, accounting, advertising, and most importantly local, state, and federal taxes to pay. Plus many other operating expenses that I'm not thinking of off the top of my head.

Good luck.

[KCM]

NO WONDER THERE IS A 70% FAILUARE RATE OF BUSINESS START UPS!!

Ehh. During start up everything is filtered back into the company anyway. when my company started up I was more worried about the bills and such and just making money and getting the job (by no means does this mean low balling it.) As the reputation grows then the price is upped. Im not saying one way or the other. 50 dollars is kind of low for that property but sometimes paying off debt and learning the business is just as important as hitting it right on the money.

[Stephen M.]

I Understand the rationale and been there/ done that. But steep inclines adds time and it isn't the same as mowing on the flat.

Its true that most start ups believe that they have to take anything and most everything, but that isn't true. Breaking even is not the goal and neither is going into negative territory. HAVING A JOB JUST TO HAVE A JOB isn't worth the effort if you aren't making a profit beyond expenses and a wage. I've learned the hard way, as most experienced operators have.

However, on the flip side, if you break even, you haven't lost anything and can chalk it up to experience and know what to charge next time for that job or another similar one.

[lorenzo piedra]

$33 an hour is big money in Oklahoma.

BTW we have Jim Thorpe here in Pennsylvania and we ain't giving him back.

[KCM]

Stephen M i understand what you are saying and it is all correct. When i started i was trying to pay school (and still am) equipment, loan, etc. I would take any job to get established and to pay that 35000 tuition and such. Im just saying lowballing wasn't even an idea but coming up a little shy would occur sometimes. All the basics were down since i worked on a golf course but the real essentials such as time, Pr, contacts, were unfarmiliar to me. Through trial and error i am in the process of succeeding. So. i say if you are short a bit. its ok just learn from that mistake

[Stephen M.]

I still make mistakes in bidding, even after almost 18 years of doing "guestimates". My big screw ups are the "innocent" looking jobs that look like a half day for 2 people and have it turn into a whole day. Luckily, those are few.

[Circle G]

Well Fellas, I'm a one man show. Work a day job, gonna do this after work.
My Truck, trailer, all other equiptment is paid for. I owe on the Z-Turn, payments are relativly low. As for the cost to run my mower per hr., $10.00 may not be to far off. I was not accounting for maintinence, oil, all other thigs that were mentioned. I won't know for sure untill season starts next year. Untill then I will keep reading this forum, try to learn a little something from you guys this winter. 70% failure rate is high. I DO NOT intend to be a part of that statistic! I appreciate your reply's, they have been helpful. Keep im coming.
Thanks
Russell G.

[RRS]

I'm glad to see someone on here that can except some criticism without getting all bent out of shape for a change. Keep the questions coming.

I won't know for sure untill season starts next year

It's hard to gauge what your costs are going to be the first year in business. One of the best things you can do is sit down and prepare as accurate a personal budget as you can. Determine what you need/want to make as a salary from the business.

After that come up with as accurate a business budget as you can come up with. Include every possible expense that you can think the business will incur in a year time. Then you'll have a little better of an idea as to what the business needs to do yearly/monthly/weekly/daily/hourly...etc. Most importantly when figuring your operating costs, make certain that you base your rates on actual billable production hours during the season.

[texisman]

Hello, I'm new to this and need some help pricing.

I have a customer that wants me to keep 5 acres mowed. There is also many Oak trees that she doesn't want me to go near with the mower, around 15 of them. I'll need to trim around all the trees and buildings. She's offering to pay $200 a month. It sounds way to low to me. Can anyone please give me some helpfull information on what I should charge?

[GrassMaster]

Welcome to the Lawn Service Forum Community, Texisman!

I have a customer that wants me to keep 5 acres mowed. There is also many Oak trees that she doesn't want me to go near with the mower, around 15 of them. I'll need to trim around all the trees and buildings. She's offering to pay $200 a month. It sounds way to low to me. Can anyone please give me some helpfull information on what I should charge?

I don't know about pricing in your parts, but if I was mowing 5 acres with a fairly decent sized commercial mower I would want at least $150 a cut, now it looks like you will be doing an excessive amount of weed eating, so that will drive the price up T00!

I would do 1 of 2 things...
Walk away as fast as I could!
or
Tell her you will cut it one time for $150 & then you will give her a price. If you ain't real busy offer to do it for a $100 the first time? Just my thoughts?

Make it Plain and Simple to her. If you can't make what you want per man hour, you'll be better off letting the competition get it!

$20 to $30 an acre on a 5 acre property is about as low as you can go. Again just my thoughts?

[Braxton]

How long will the five acres take to cut? I have about 3 acres to cut on my farm. I use residential equipment (old murray rider and a craftsman 21"). I realize that commercial equipment will greatly reduce time, but my place take 1.5-2 hours + to do. I do have quite a few more trees, though. Based on my limited experience with my own lawn (I am not in this business), there's no way I'd do that for the price you quoted. GM sounds closer to me. My brother, who has a lawn about the size of mine, but with only about 5 trees or so pays $100 per cut. And that's a price he got because he knew the lawn care guy before being a customer.

Just my thoughts.

Braxton

[Circle G]

Cost per Hr. went up today

Idler Pully on left drive pump siezed up today. 30 min. job took 4 Hrs! Remove part, drive 60 miles round trip to get part, put new part on. I'm learning.

Russell G.

[Billz]

Texisman, how many times would you cut it in a month for $200? Is it fertilized? irrigated? many times, if they don't water or fertilize and don't set a schedule, you might get by with 1 cut per month in the hottest part of summer, and maybe only 2 per month in the spring/fall. Depends on the specifics, but here 5 acres would be $200 each time.

[Stephen M.]

I agree with Texisman. If all she is offering is $200 per month and wants it cut more than once/month, RUN the other way fast! Its a loser big time.

That's like a local 10 acre cematary that has consistantly paid $600/MONTH FOR THE PAST 20 YEARS and wants it cut 3x/month. They have tried to get all of us established landscape contractors interested in the job, and we all have said at some point HELL NO, NOT AT THAT PRICE!!!