Wondering how we should charge for landscape maintenence? Pruning is our full rate, but what about weeding, deadheading, etc.? Do you all charge your full per-man-hour price, less, or what do you do?
Yeah, that's kind of what I was thinking, but debating about it. It doesn't take a tremendous amount of skill to weed and deadhead, but you DO have to know what a weed is and what a weed is not.
So...pruning is a premium, lawns are what they are, and installs are T&M...but not a premium?
We charge the same across the board no matter what we're doing
maintenance -- same
hardscaping--- same
lowvoltage --- same
landscaping-- same
materials -- extra
christmas lights ---I guess is premium
out of county jobs--" "
material for out of county jobs-- priced accordingly
The companies in my area charge one price for maintenance, which includes cutting, weed wacking and blowing, but a higher price for pruning and "garden maintenance" (not just weeding and dead heading). Taking care of plant material requires skill and knowledge and deserves a higher labor rate, as does pruning. Your cost should also be higher since highly skilled labor costs less then unskilled or semi-skilled labor. It is also an opportunity to increase your margins since regular maintenance is so price competitive.
The labor rates for regular maintenance is typically the lowest rate and the rate for low voltage lighting is the highest rate, with hardscaping, garden maintenance and plantings somewhere in-between.
Learn from the "big box stores". They often advertise items (like bottled water or detergent) at very low or break even prices just to get you in the store. These items are called "loss leaders". The assumption is that once you are in the store you will buy other items that are more profitable to them. The fast food chains do the same thing. That dollar menu burger (with low margins) is just a way to get you to buy a large soda (with high margins).
Maintenance is typically our "loss leader" that allows us to get more profitable work, whether it is garden maint., seasonal color changes, pruning or plantings.
This is the second time within a day or two I have heard this term coined..."premium"...what does that mean??? I'm assuming more than what your normal per hour labor rate is...yes? Very helpful info. Seems like everybody pretty much does the same thing...labor is labor be it hardscape, install, or maintenance, including just weeding and deadheading.
I think Jody phrased it great..."Taking care of plant material requires skill and knowledge and deserves a higher labor rate, as does pruning." That makes a lot of sense, just discussing that today! Very helpful, I appreciate the input!
We don't do much T&M work but when estimating and cost accounting on we actually use quite a few different rates. We use a base labor rate and supervisor rate that covers overhead, etc. that is higher for construction/ install than maintenance. We did that because when we figured out what we needed to charge per hour we felt that is was higher than we could justify on our existing maintenance contracts. Construction was the faster growing part of the company and we felt we could charge enough on those projects to cover it. It has worked well for us so far. Then we charge higher rates for for anything that requires more specialized knowledge or skill like tree work, masonry, pesticide applications, consultation, design, etc. The more demanding the task the more we charge.
Exactly Sandi. A premium is just a way of saying that this is something that we charge more for since it typically has a higher value and cost (ie premium gas vs. regular - premium has a higher octane so it costs more to produce and sells for more at ideally a higher profit)
oooOOOOk. Gotcha both Jody and Tricky. Makes a lot of sense. Makes me feel better about what we charge and how. That's pretty much what we were thinking for this year but you both refined it.
THANKS!
