Forum Discussion
4 Replies
- NpeasleeContributor 2
I typically guesstimate the amount of time it will take to perform a job, add 30 minutes for incidentals and multiply the time by my hourly rate. For materials, I multiply the incurred cost by 1.15. If there is any additional transport required, I charge $1.00/mile.
- Jared_RContributor 2
I measure sq ft.
- Awhite9293Contributor 2
I get this question a lot—“How do you come up with your pricing?” And honestly, I keep it pretty straightforward.
First, I worked backwards to figure out my true hourly rate. That means I sat down and calculated everything it takes to run my business:
- Equipment costs
- Fuel and maintenance
- Insurance
- Overhead
- Taxes
- And most importantly—profit
Once I had that number, I knew what I needed to make per hour to stay in business and grow.
From there, quoting becomes a lot easier.
For example, with recurring lawn care, I already have a good feel for how long a property takes based on square footage and layout. If a yard typically takes me 30 minutes, I simply apply my hourly rate to that time. That becomes my price.
Same concept applies to everything else I do:
- Landscaping installs
- Mulch jobs
- Cleanups
- One-time cuts
I estimate how long the job will realistically take, multiply it by my hourly rate, and that gives me a consistent, profitable number.
Over time, you get faster and more accurate with your time estimates, which tightens up your pricing even more.
At the end of the day, it’s not about guessing or undercutting—it’s about knowing your numbers and charging accordingly. That’s how you build a business that actually lasts.
- Awhite9293Contributor 2
Now here’s where it really starts to scale. Let’s say I add an employee to that same 30-minute yard. Instead of one guy taking 30 minutes, now we’re knocking it out faster or freeing up time to complete more properties in the same window. I’ve effectively doubled my efficiency without doubling my overhead per job—meaning I can generate more revenue in the same amount of time. That’s where real growth and profitability start to happen.