How much to charge?

[BHLC]

I hope I'm not ill advising but i won't even think of dropping my gate for less then $35 a yard. We've a decent amount of equipment and I've done the math on what it cost to operate per hour as a legit company. I'm all for the little guy starting out, but talk to the larger companies and find out what they are charging. It's the wrong answer to price your services at half the rate. All it does is drive the rate down for all of us. I get it you don't have as much overhead so why not make as much as you can. We service 17 yards in a small 26 house neighborhood. I recently confronted a guy working out of his van, no insurance, no license, ect. I just wanted to know why he was offering my customers service at a 1/4 the price. I'm not even sure the guy wasn't an illegal immigrant. Long story short you can't compete with larger operations but you can make more money for yourself if you price residential properties close to the same price because they've created the market value. Most guys will even sub contract their services they offer and you don't to you at a discount.

AMEN brother!!

 

[BHLC]

" I could make more money " if you're doing this for a living and to support your family. Why not maximize your profit margin? I saw in am earlier post that you were satisfied and felt successful with $42,000 you made last year. I know guys who work a full time job and do lawn care on the side and make more than that just with their lawn business. By living in the south I know the cost of living is lower than the north west, so I really don't see how you can have a good lifestyle making $42K. As far as working for a lesser price than the larger landscape companies and trying to drive down their prices. At some point would you not want to be one of those larger companies and make more money to provide your family with a better lifestyle. Not have to worry about the electric bill being too high or having threats of someone turning off your water. So if you keep your prices low you're only hurting yourself now and in the future. I had those problems I mentioned earlier when I was growing up and I'm not going back to that lifestyle. And to be honest the larger companies are not even looking at you as a threat. There are several companies here that make almost a million dollars a year or better. I don't know how ambitious you are and I don't know what drives you to get out of bed and go to work everyday. But if " I could make more money but choose not to" is your attitude towards your bottom line and how your family lives. Then you should just be a shift manager at McDonald's for what your making and the attitude you have towards your profession and you fellow mower men.

Thumbs up!

 

[BHLC]

I am a 15 year old I live in a small town. I do a lot of yard work blowing, cutting, mulch spreading every thing else. For mowing I charge $20 a job. For leaves its $15 an hour. Every other project is what every I feel like. Are these ok. For mowing I have 5 clients. That's $100 from that. Going into the fall with all the leaves I use my trusty br 380. That brings in about $150 a week. Mulching in the spring is around $20 an hour. I would like to know if this is ok. Are there any mistake that I have made.

Insurance?
License?
Cost of operating?
How do you get from a to b?
Taxes?
Manpower?
Repairs?
Maintenance?
Food?
Mortgage?
Electricity?
Heat?

There's a lot more to it than just the weekly income.

If you're pulling your stuff around on your bike through the neighborhood, well, I guess you're doing ok at 15yrs old living with mom & dad,, however there is a tremendous amount more possibility. I was bring in 3 times that at 16 after I got my license, bought my 1st house at 19. Start to bring your prices up now while you can before you HAVE to.

Or...be happy grossing $42k a year...

 

[TaskForceLawnCare]

Insurance? License? Cost of operating? How do you get from a to b? Taxes? Manpower? Repairs? Maintenance? Food? Mortgage? Electricity? Heat? There's a lot more to it than just the weekly income. If you're pulling your stuff around on your bike through the neighborhood, well, I guess you're doing ok at 15yrs old living with mom & dad,, however there is a tremendous amount more possibility. I was bring in 3 times that at 16 after I got my license, bought my 1st house at 19. Start to bring your prices up now while you can before you HAVE to. Or...be happy grossing $42k a year...

Your exactly right, no ambition, why wouldn't want to make more. That's why I got into my own business, so my wife could drive a new car and i can drive a big diesel truck run multiple mowers have employees, send my kids to collage and not worry about my bills. Which by the way boost the American economy. If I wanted to have a gross income of $42k a year I'd flip burgers at a fast food joint. The small guys aren't a threat to me, if i felt the need i could offer their customers more services higher quality with less time on their property and a higher price that they always end up being happy to pay. Because we're reliable have curb appeal and offer a lot of services to include a sales/public relations rep that ensures they're always satisfied. Why would you under cut yourself short, because you're scared to ask a higher price?

 

[TaskForceLawnCare]

" I could make more money " if you're doing this for a living and to support your family. Why not maximize your profit margin? I saw in am earlier post that you were satisfied and felt successful with $42,000 you made last year. I know guys who work a full time job and do lawn care on the side and make more than that just with their lawn business. By living in the south I know the cost of living is lower than the north west, so I really don't see how you can have a good lifestyle making $42K. As far as working for a lesser price than the larger landscape companies and trying to drive down their prices. At some point would you not want to be one of those larger companies and make more money to provide your family with a better lifestyle. Not have to worry about the electric bill being too high or having threats of someone turning off your water. So if you keep your prices low you're only hurting yourself now and in the future. I had those problems I mentioned earlier when I was growing up and I'm not going back to that lifestyle. And to be honest the larger companies are not even looking at you as a threat. There are several companies here that make almost a million dollars a year or better. I don't know how ambitious you are and I don't know what drives you to get out of bed and go to work everyday. But if " I could make more money but choose not to" is your attitude towards your bottom line and how your family lives. Then you should just be a shift manager at McDonald's for what your making and the attitude you have towards your profession and you fellow mower men.

Well put, but they can only temporarily drive prices down until they realize that they can't afford to replace their equipment by under cutting the larger company. that understands the cost to replace and maintain equipment. Which is the same equipment that earns your paycheck. They're usually gone in a few years if not earlier.

 

[Carscw]

Man just charge what ever makes you happy. At 15 years old and cutting yards in your neighborhood I see nothing wrong with charging $20 a yard.

I know plenty of people that wish they made 42k a year. A shift manager at MC D only make around 20k a year.

We see a lot of the so called big company's with the big trucks and high $ mowers pull up to a yard 5 guys jump out hack the yard up and gone in 15 mins.
My wife looks at me and says they should be embarrassed to leave a yard looking like that. And charge $50.

 

[exotion]

Man just charge what ever makes you happy. At 15 years old and cutting yards in your neighborhood I see nothing wrong with charging $20 a yard.

I know plenty of people that wish they made 42k a year. A shift manager at MC D only make around 20k a year.

We see a lot of the so called big company's with the big trucks and high $ mowers pull up to a yard 5 guys jump out hack the yard up and gone in 15 mins.
My wife looks at me and says they should be embarrassed to leave a yard looking like that. And charge $50.

Happy life style at 42k is easy considering I was making 23k last year and next year I am shooting for 75k well see where it goes from there I charge the most my customers will pay I take in the people who normally can't afford professional care and the people who have money but won't spend it I have had a few people try to come in and steal some of my customers they walked away empty handed people like me.. I run a clean operation my truck trailer and equipment look nice I am effecient professional and reliable .... For 25 a cut ya I am happy with 42k we no longer have government assistance and I don't worries about my bills

 

[Carscw]

Happy life style at 42k is easy considering I was making 23k last year and next year I am shooting for 75k well see where it goes from there I charge the most my customers will pay I take in the people who normally can't afford professional care and the people who have money but won't spend it I have had a few people try to come in and steal some of my customers they walked away empty handed people like me.. I run a clean operation my truck trailer and equipment look nice I am effecient professional and reliable .... For 25 a cut ya I am happy with 42k we no longer have government assistance and I don't worries about my bills

Man that's all that matters is that you are happy with what you make.

 

[LoCo86]

Happy life style at 42k is easy considering I was making 23k last year and next year I am shooting for 75k well see where it goes from there I charge the most my customers will pay I take in the people who normally can't afford professional care and the people who have money but won't spend it I have had a few people try to come in and steal some of my customers they walked away empty handed people like me.. I run a clean operation my truck trailer and equipment look nice I am effecient professional and reliable .... For 25 a cut ya I am happy with 42k we no longer have government assistance and I don't worries about my bills

"I am happy with 42k we no longer have government assistance"

Taken from the Front Porch Forum titled Affordable Health Care: " I only need me and my wife because Washington state offers health care to kids untill they are 18 unless you make over 60k a year in the household the best to we have never paid a dime for our kids to go to any doctor."

When I was in school I work as a laborer for a construction company and most of the guys I worked beside were happy as a clam to make $8 an hour just so they could have beer money for the weekend. But those were employees. The owner who ran the business had to have the ambition, the drive and the desire to be more successful everyday. As a owner you should never be content with the operation of your business.

I glad to see you set a goal of making $75k next year, however you should set more realistic goals. You're talking about nearly doubling your business in one lawn season with customers who are either stingy with their money or who don't really have it to begin with. The offering of your services for your current customers more than likely begin and end with mowing edging trimming and blowing everything off. For you to reach your goal you will need to expand your services to customers who want more done than just what I call the " basic" services. And with the idea of doubling your business comes with a cost of hired labor. As you know that comes with payroll, more insurance, more equipment, etc.. Which is going to effect your bottom line. Which means you're going to have to more than double your business to reach the $75K mark.

I wish you the best and maybe I just have enough ambition for the both of us. I would just like to see a better attitude toward the lawn care profession and those in it to make a living. But at the end of the day it's your life not mine.

 

[mowerman05]

There seems to be a awful lot of opinions on what to charge on this thread. Who cares as long as the person is happy. Money doesn't make everyone happy, there's more to life than that.:thumbsup: