Anyone ever started a lawn care company?
#21
06-05-2009, 07:00 PM
Diesel Bomber
Don't base your fees off what someone else is charging, that's flying blind. Know what your cost are, variable being based on hour or yardage however you want to do it, and what your fixed cost are ie; salary, insurance, taxes, advertising, any payments.
Then add what you want to profit, divide into the amount of work you expect to do and you have your rate. This will constantly change when first starting, so start out higher than you expect and readjust after a while if you need to. It's better to start high than to get a bunch of accounts and lose them if/when you have to up your price with your overhead.
The biggest thing to remember is, salary is not profit. You will have money invested in this, look at what that dollar amount could be doing for you collecting interest, you should at the very least profit more than that.
Then add what you want to profit, divide into the amount of work you expect to do and you have your rate. This will constantly change when first starting, so start out higher than you expect and readjust after a while if you need to. It's better to start high than to get a bunch of accounts and lose them if/when you have to up your price with your overhead.
The biggest thing to remember is, salary is not profit. You will have money invested in this, look at what that dollar amount could be doing for you collecting interest, you should at the very least profit more than that.
#22
06-06-2009, 10:24 AM
Diesel Enthusiast
#23
06-06-2009, 01:40 PM
I agree, but disagree you have to be competetive or yo will have no bussiness, finding out what your would be competitors is need to make your company legit. Bottom line if you go in there charging 30 bucks more for the same residential account than the guy that already does it, you will not be taken seriously. Bottom line you have to stay compettitive to grow, this is even more true on commercial.
No doubt it would be tough if you were double the other guy. However, if the other guy has no clue what his real costs are (very likely) and is actually losing money in the long run, why would you want to build your business on the same foundation?
Also, what is the point of growing a business if it is not hitting the numbers you want? Why add the stress of expanding if your margins aren't where they need to be.
Make value the selling point of your company instead of price, and you will have a different class of customers. Customers that won't bail on you when Joe blow starts out of his pickup for $5 less than you.
My main point is, make sure you understand how the cash is moving, what numbers you need to hit, and how to adjust if they aren't. You will be in business longer than the guy down the street that is not tracking anything other than if he has enough money to fill his tank up.
#24
06-06-2009, 02:13 PM
Diesel Bomber
I agree with the 94Matt and the other guys above. Figure out what you need to make. If your rates don't support that, why do it?
I started a lawn care business in 2000. Back then, I was able to pay all my equipment off the first year. The two Scag zero turns are still running great. The trailer looks brand new. I've been through several high end trimmers, so I buy the home depot special. If it lasts a season, it's paid for itself. My back pack blowers are both three years old and still going strong.
If you need the motivation, buy a bunch of equipment and you will have to pay it off. If you don't need the motivation buy what you can afford, assuming the few jobs you have now, come through.
The market is getting very satiated with guys cutting a regular lawn for $10 to $25. I cut my jobs by almost half this year, because I know what I need to make and if I'm not making that, I'm better off sitting home, of traveling around to the dealerships selling Adams products.
Above all, get the General Liability Insurance. Many customers insist on seeing a copy, before hiring you.
I started a lawn care business in 2000. Back then, I was able to pay all my equipment off the first year. The two Scag zero turns are still running great. The trailer looks brand new. I've been through several high end trimmers, so I buy the home depot special. If it lasts a season, it's paid for itself. My back pack blowers are both three years old and still going strong.
If you need the motivation, buy a bunch of equipment and you will have to pay it off. If you don't need the motivation buy what you can afford, assuming the few jobs you have now, come through.
The market is getting very satiated with guys cutting a regular lawn for $10 to $25. I cut my jobs by almost half this year, because I know what I need to make and if I'm not making that, I'm better off sitting home, of traveling around to the dealerships selling Adams products.
Above all, get the General Liability Insurance. Many customers insist on seeing a copy, before hiring you.
#25
06-06-2009, 06:23 PM
Diesel Bomber
I agree, but disagree you have to be competetive or yo will have no bussiness, finding out what your would be competitors is need to make your company legit. Bottom line if you go in there charging 30 bucks more for the same residential account than the guy that already does it, you will not be taken seriously. Bottom line you have to stay compettitive to grow, this is even more true on commercial. Commercial accounts are hard to count on year after year and there is a high turn over in the commercial field. Keep in mind the little things when you do get accounts, blow the grass away from pools and beds( we had a guy that put quite a bit of grass in a pool, we did not make any money on that cut and had a very unhappy homeowner) Been thinking of doing this myself, just not the best year for a start up. You said you have your pesticide cert, some customers will go with companies that can take care of all of there landscape needs.Good luck
No doubt it would be tough if you were double the other guy. However, if the other guy has no clue what his real costs are (very likely) and is actually losing money in the long run, why would you want to build your business on the same foundation?
Also, what is the point of growing a business if it is not hitting the numbers you want? Why add the stress of expanding if your margins aren't where they need to be.
Make value the selling point of your company instead of price, and you will have a different class of customers. Customers that won't bail on you when Joe blow starts out of his pickup for $5 less than you.
My main point is, make sure you understand how the cash is moving, what numbers you need to hit, and how to adjust if they aren't. You will be in business longer than the guy down the street that is not tracking anything other than if he has enough money to fill his tank up.
Also, what is the point of growing a business if it is not hitting the numbers you want? Why add the stress of expanding if your margins aren't where they need to be.
Make value the selling point of your company instead of price, and you will have a different class of customers. Customers that won't bail on you when Joe blow starts out of his pickup for $5 less than you.
My main point is, make sure you understand how the cash is moving, what numbers you need to hit, and how to adjust if they aren't. You will be in business longer than the guy down the street that is not tracking anything other than if he has enough money to fill his tank up.
Thread
Thread Starter
Forum
Replies
Last Post
Diesel Bombers
Latest Automotive Industry News
0
09-01-2015 01:50 PM
