How to Charge for Lawn Maintenance Services
Deciding how to charge for lawn services is not a straightforward process. There are several items that you will need to consider before settling on a final price. Research thoroughly, because pricing your services incorrectly could be disastrous for your company.
Consider the following areas when pricing your services:
Employees
If you have any employees, you will need to build their costs into whatever you charge your customers. Not only will you need to consider salary, but also benefits and other perks. If you cannot afford to pass that expense on to customers, then you should not hire an extra employee until you can.
Overhead
A lawn maintenance company will have to pay for dozens of small expenses that can gnaw away at profits if they are not calculated properly. Gasoline, insurance, and equipment purchasing and maintenance must be considered and factored into the cost of doing business. If not, there will be no extra money to buy a new piece of equipment when it is needed.
Services Rendered
The service that you are offering has value and should be priced as such. Of course, each yard is different. Consider how much time it will take to complete the entire yard. Also, think about what types of services you will do at the home. These factors should affect your final price for that household.
Competition
The prices of your competitors should be considered before you set any prices. If you can undercut your competition and still make a profit, that is preferable.