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How much do you mark-up fertilizer?

#1

Browns Lawn Service

Browns Lawn Service

I am about to bid on my first fertilizer job and would like to know how much you all mark up the fertilizer you purchase?

thanks


#2

K

KennyV

Is this inventory you buy Wholesale and keep in your warehouses??
If you are buying at wholesale then you could charge retail, if you are warehousing it...

If your buying it retail, how do you justify a mark-up?
You are selling an application service right? :smile:KennyV


#3

Browns Lawn Service

Browns Lawn Service

KennyV said:
Is this inventory you buy Wholesale and keep in your warehouses??
If you are buying at wholesale then you could charge retail, if you are warehousing it...

If your buying it retail, how do you justify a mark-up?
You are selling an application service right? :smile:KennyV
Click to expand...

is this not the American way. Each time a product touches another hand, the price is increased.

i've been in the computer business for a while and i never sell parts at retail, they are marked up... not a huge increase, but say 15-20%....

does this not apply in the lawn care industry?


#4

Carscw

Carscw

I would just charge for my time.

On most my customers this is part of the weekly service. Every two weeks I put out just a little amount of 10-10-10

Sent from my iPhone using LMF


#5

Browns Lawn Service

Browns Lawn Service

ok, well i guess the lawn care industry is different than most of the rest of the industries in this country...


#6

L

Lawnranger

Browns Lawn Service said:
ok, well i guess the lawn care industry is different than most of the rest of the industries in this country...
Click to expand...

Feel free to mark it up but be prepared to answer your customer. Suppose they see the fertilizer you use and then go to the store and see the same product and price. The next question they may ask themselves is "what is my lawn guy charging for me for this fertilizer?" Now they compare your invoice with the price at the box store and see you are "over-charging" them. How do you think they will feel?

Solution: charge a little more on labor or find the product cheaper in bulk or make less profit or etc. You get the picture. You can do whatever you want but be prepared to answer for your actions. A good answer for charging above retail is that you have to spend your time and money on high priced gasoline to go to the store and purchase the product and for that you charge a justifiable premium but if they want to spend their time and money running around town then by all means have them go buy the fertilizer and you still charge accordingly for the "installation". The most important factor to remember is to give your customer the choice if they question you. Most people want value over low prices and as long as they know they are getting a good value for their hard earned money they will usually will not have a problem paying your price.


#7

Browns Lawn Service

Browns Lawn Service

Lawnranger said:
Feel free to mark it up but be prepared to answer your customer. Suppose they see the fertilizer you use and then go to the store and see the same product and price. The next question they may ask themselves is "what is my lawn guy charging for me for this fertilizer?" Now they compare your invoice with the price at the box store and see you are "over-charging" them. How do you think they will feel?

Solution: charge a little more on labor or find the product cheaper in bulk or make less profit or etc. You get the picture. You can do whatever you want but be prepared to answer for your actions. A good answer for charging above retail is that you have to spend your time and money on high priced gasoline to go to the store and purchase the product and for that you charge a justifiable premium but if they want to spend their time and money running around town then by all means have them go buy the fertilizer and you still charge accordingly for the "installation". The most important factor to remember is to give your customer the choice if they question you. Most people want value over low prices and as long as they know they are getting a good value for their hard earned money they will usually will not have a problem paying your price.
Click to expand...

well said, thank you.... :thumbsup:


#8

exotion

exotion

On all my properties under 6000 sq ft i give away free fertalizer. I feel it is a small price to pay to make sure their grass stays green and healthy mostly i buy a $30 ish dollar of wilbur elis brand fertalizer and it lasts about 4-6 yards.

Just a perk for using my services. I am aware of the loss BUT other people dont offer this.


#9

Carscw

Carscw

I have always told the home owner it's part of the lawn care.
I don't count it as a loss

Sent from my iPhone using LMF


#10

K

KennyV

Extra service without leaving someone feeling they are being nickle & dimeed, or gouged over supplies will always pay off...
Your reputation should be worth more than the few extra dollars you might think your able to 'itemize' out on a bill... sell your service. :smile:KennyV


#11

exotion

exotion

Carscw said:
I have always told the home owner it's part of the lawn care.
I don't count it as a loss

Sent from my iPhone using LMF
Click to expand...

Well i have customers who forget to water. So I started with them a while back saying i would trade Fert for water and now All my customers are on top of there watering and I dont have to skip lawns. Also I do not contract because my reputation and work guarentee that they will come back. When i get commercial accounts I might have to contract those and will not give free fert. I have one customer on a 1.5 acre lot I charge him the bag of fert plus 10 and hes aware of it :)


#12

Browns Lawn Service

Browns Lawn Service

thanks for the replies everyone... :thumbsup:


#13

J

jenkinsph

I don't mark up materials of any kind, instead I charge a fee for my time and equipment that I and the customers are satisfied with. One thing about landscape work the results are easy to see good or bad. Most customers will use their eyes as a yardstick to measure your accomplishments.


#14

ringahding

ringahding

Hey new here, but not to the industry....If you know your prices ahead of time, there will never be a Mark Up. You should have hourly, square footage or hauling already figured into your business plan. The only real thing I could ever imagine "Marking Up" is fuel & we call it a "Fuel Surcharge"


#15

Browns Lawn Service

Browns Lawn Service

thnx fellas


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