Starting out

[exotion]

Ya. I saw last year people want that little extra something for the same amount of money. You get there to now and they ask for one small thing every week. It adds up, when you tell them you can't do that they find someone else. Because they can always find someone to do more work for less.

As far as pricing you need to charge what people are willing to pay in your Target area. You can't charge more because of the people willing to so less. You also cannot charge not enough that your prostituting your self out for nickels .... Remember gas for trucks and equipment. Office supply, shop and equipment, insurance for your truck everything adds up. I thought last year I had no overhead and I found out that about 30% of my gross was over head 15% gross was taxes that's nearly half of what I made. This year I am forced to charge sales tax and I've already gotten some unhappy people one I particular " it was 25 its was 25 from the guy before you. Now you want to charge 25 plus tax? I don't understand" I explain very nicely excatly the situation and sell it to him best I could but the fact of the manner is he can find someone to do it for 25 so why would he keep me? It's been an interesting learning experience for pricing.

Snow removal was difficult to sell so I kept lowering my price untill I was able to start selling. 15 a house its not a lot of money and it does not add up fast at all you need 9 houses to make 100 bucks that sucks snow removal however takes less than 10 mins a house so it adds up faster than mowing which takes 20-30 mins a house.

Your pricing can depend entirely on you. What overhead you have, what experience you have, what equipment you have, the quality of work you do, and the most important is your customer base how much will they pay for you vs how much your willing to work for.

 

[BHLC]

Ya. I saw last year people want that little extra something for the same amount of money. You get there to now and they ask for one small thing every week. It adds up, when you tell them you can't do that they find someone else. Because they can always find someone to do more work for less. As far as pricing you need to charge what people are willing to pay in your Target area. You can't charge more because of the people willing to so less. You also cannot charge not enough that your prostituting your self out for nickels .... Remember gas for trucks and equipment. Office supply, shop and equipment, insurance for your truck everything adds up. I thought last year I had no overhead and I found out that about 30% of my gross was over head 15% gross was taxes that's nearly half of what I made. This year I am forced to charge sales tax and I've already gotten some unhappy people one I particular " it was 25 its was 25 from the guy before you. Now you want to charge 25 plus tax? I don't understand" I explain very nicely excatly the situation and sell it to him best I could but the fact of the manner is he can find someone to do it for 25 so why would he keep me? It's been an interesting learning experience for pricing. Snow removal was difficult to sell so I kept lowering my price untill I was able to start selling. 15 a house its not a lot of money and it does not add up fast at all you need 9 houses to make 100 bucks that sucks snow removal however takes less than 10 mins a house so it adds up faster than mowing which takes 20-30 mins a house. Your pricing can depend entirely on you. What overhead you have, what experience you have, what equipment you have, the quality of work you do, and the most important is your customer base how much will they pay for you vs how much your willing to work for.

Seems last summer we we're having a similar discussion with you on this subject...

 

[Lawnboy18]

I would have agreed with you a few years back but with money being as tight as it is for most people I don't think quality becomes as big an issue as price anymore.

Very true! Even tho I am Canadian, I go to Fl sometimes and I've seen the recession hit. But now, people are getting less scared with spending money. The economy is getting better and people will be willing to pay for a good job and a good service.

 

[BHLC]

Very true! Even tho I am Canadian, I go to Fl sometimes and I've seen the recession hit. But now, people are getting less scared with spending money. The economy is getting better and people will be willing to pay for a good job and a good service.

The economy is getting better? Where? Is this place where it's getting better a fantasy land? Do tell...

 

[exotion]

Seems last summer we we're having a similar discussion with you on this subject...

Yes I know. I was definately unable to see the big picture untill the year end reports. I truly believed I had basically no overhead but its all the behind the scenes stuff that costs.

 

[BHLC]

Yes I know. I was definately unable to see the big picture untill the year end reports. I truly believed I had basically no overhead but its all the behind the scenes stuff that costs.

Glad you see it now. Seems like you've got the drive, now just need to make a profit.

 

[Ric]

Yes I know. I was definitely unable to see the big picture until the year end reports. I truly believed I had basically no overhead but its all the behind the scenes stuff that costs.

You always have overhead and it's always more than what you think. The larger the business, the more overhead you'll have. All that behind the scenes stuff adds up and good book keeper would and could keep track throughout the year and be able to tell you where your at anytime in the year.

 

[Lawnboy18]

The economy is getting better? Where? Is this place where it's getting better a fantasy land? Do tell...

I have a few classes in business and administration. I guess it depends in which part of the U.S you are in, but it's simple. You guys got it real bad in 2007, but people are building confidence again. Companies are starting to hire a little more, but they are still a little fearful and watching all there moves. It is a matter of time before the economy is going to get better. People have to build confidence after what they have been thru and that can take time.

 

[Lawnboy18]

Also, Canada and the U.S.A are together when it comes to business. When the U.S.A had big problems, they closed all exportations to us. They wanted no more from us to try and start up there economy again. So, how they did that is by helping the strongest and biggest companies to get back on there feet. The Government lended money to GM as an example. Today, GM is getting better. That is one example. Also, exportations are starting again to the U.S.

Don't forget, you want our water from are Great lakes and our oil from Alberta and the Great North (if ever that happens). Now, I am in no mood to fight here. I am just exaplaining what you wanted.

 

[Ric]

I have a few classes in business and administration. I guess it depends in which part of the U.S you are in, but it's simple. You guys got it real bad in 2007, but people are building confidence again. Companies are starting to hire a little more, but they are still a little fearful and watching all there moves. It is a matter of time before the economy is going to get better. People have to build confidence after what they have been thru and that can take time.

I here where your coming from and it sounds good. Company's were starting to hire, people were building confidence again but now the big employers are cutting hours so they can get of paying Obama-care/ health insurance, which intern cuts a guys wages so where does that leave people and the economy.