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Mulch and pine straw
I just finished a job for a customer of mine, we installed 196 bags of cypres mulch and 18 bales of pine straw, labor cost me 80.00 not including me and the materials were 341.00 I charged him 1132.00. I charge 5.00 per bag of mulch to install and 8.00 per bale of pine straw. these prices include the cost of material and tax. My cost on Mulch is 1.47 per bag and on straw it's 3.45 per bale. Are my prices to high, to low or just right?
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In my area that would be high, but that depends on the job. How long did the job take? How far did you have to move the mulch? -
We usually charge the cost of the bale to put it down. Same with the mulch if it is easy to get to. If not we charge alittle more.Originally posted by T-N-TComment
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In my part of Florida we charge 2.5 to 3 times the retail cost of material to install. Now if the job is smaller the margin is higher and if the job is bigger and competitive then the margin might be lower. This is called FORMULA BIDDING.
Now the true way to price a job is to know all your costs of doing business including your salary. Add a fair profit margin and you have your price. Knowing your cost of doing business is one of the most important things in any business. To find your cost of doing business add all your fixed costs and divide by the number of hours you work each year. Now add in your variable cost for the job at hand. Now remember just because you own a piece of Equipment doesn't mean it doesn't cost you. One day you will have to replace that equipment.
Now Formula bidding can work but without knowledge of cost you can be cheating yourself.
Remember if you are shucking down with out insurance or not paying taxes etc. You are cheating yourself and passing the saving on to your customer.Comment
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