HOW TO CALCULATE A LANDSCAPE JOB QUOTE! (profit margin exposed!)
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- Опубликовано: 5 фев 2022
- HOW TO CALCULATE A LANDSCAPE JOB QUOTE! (profit margin exposed!)
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Right now I'm just waiting for the spring rush
Working 6 days a week and overtime hours
Thank you Andes. Grateful for this free information that you provided us. Not everyone releases vital information when it comes to profit. Love your passion for this and keep going with your amazing work brother 👍🏾🙏🏾 much blessings
That is an awesome idea! It can certainly be a win win for the employees and your company. I need to start implementing this. Thanks Mike! 👍
Great information and motivation for the employees!
Great explanation of P4P! I’ve heard of this system before, but I didn’t understand the nuances of it. I love it!
The amount of value you provide …. Is ridiculous
Thank you Mike
The whole lawncare community could benefit if every youtuber tried to be Like Mike.
Thank you, Mr. Andes I have always undercharged since I'm 14, however, I think I can charge more now and justify it, as well as have more consistent prices!
Great job starting so early. Remember the saying similar to this: Professionals are not paid big money per hour for the job. They are being paid for the years of experience to do the job job right and efficiently. Meaning, if you as a 14 year old take 1 hour to mow a lawn with a 20" push mower, you get paid $35/hour. However, someone with more experience and a bigger mower can do it in 15 minutes, drive to the next lawn in 5 minutes and repeat after, they are getting $105/hour at 3 lawns times $35 each. So, at your stage in life, get jobs for the prices you can, learn/gain experience and knowledge, buy tools as needed/afford to make you more money and charge more as you go. In that same $35 job that takes you an hour, if you were to buy a larger mower and get it done in 1/3 the time, you wouldn't lower your rate to $12, you'd still charge $35. Maybe more if you increase rates. Add basic landscape demolition to your skills as well as fall and spring clean up. Have a buddy with a truck on speed dial to help with jobs/transportation too. Battery operated sawzall, hand clippers and hedge trimmers can easily take down small trees and bushes and get you over $50/hour. Plus you can now charge to trim hedges. FYI, many compact to mid-size cars can tow around 1,000 pounds so a small car, small trailer and minimal tools will allow you to make good money. Trucks are good but not needed if they are too expensive. Good luck!
Great example Mike!
My company (food distribution) pays the order selectors by the case. They make around 25 cents per case they pull... Most of those guy are making 100-120k per year, they work their asses off. Before they did that, people pulled 60-70 vases per hour for 18$ an hour.
Yessir great work mike
Hello Mr. Andes,
Just wanted to say really appreciate all the knowledge you provide through your means of social network to us small business owners. I started my lawn & snow company last year and looking forward to growing with some of the tools and ideas you have so graciously shared with us. Thank you for all you do. God bless. Absolutely Cutting Edge Lawn & Snow Services IL
✅🙏🏼
Well said.
This is why I won't ever have more than myself and my 2 sons in our business. You can't trust 90% of employees because they don't care.
love it!! this is what I do too. I don't have a set system on it yet but I give my employees a set day rate and I don't care if the job takes them 4 hours or 10 hours its the same day rate
P4P baby! ✅🌟
thank you for all the good content, from franklin N C
The huge factor in this is to make sure you have a healthy minimum. I did something similar to this but I was ignorant of my costs when I first started. It worked on bigger jobs but absolutely killed me on the small ones
Love it
I do 1 day jobs and pay 1 days wages for the job,sometimes jobs take half a day sometimes they take a full day. Pay is the same
Thanks
Does that mean that the 1/3 is for 3 employees or six?
so if you got 3 men doing a mulch job you only charge a flat hourly rate? i charge 85 per man hour but its not going so good for me. i need help with estimates.
Hi Mike I really like the content. I work for a hard landscaping business in the uk. One question I have is what if the job is quoted wrong? we have this happen a surprising amount of times.
We shoot for 4 out of 5 projects to be under BH. On the ones that go over, they just have to realize that weather and human error is involved
Hello Mike I love the content and this is something I’m looking to implement into my business so it is super helpful! I only have one question based on this model how many guys would be working the job and how much would each of them make per hour? Is it one guy at $25/hr. Or two guys at $12.50/hr??
Also what is your typical base pay?
Hey Mike,
Love your content. I have no clue how your channel is not larger.
I started my lawn and snow business last year after being furloughed and brought back twice from my management corporate job due to Covid. Started with zero clients, and finished the year with 91 clients running solo. I needed to purchase everything to start the business, after $71k in revenue, gross profit of $52k first year. Will be on track for $120k-$130k revenue this second year solo. I will be looking to hire my first employee possibly this year or Spring season of 2023 depending on the growth I have this spring season.
My question for you is, can I make P4P work with just one employee or should I wait for a second or even third employee before implementing?
Thanks for your time,
Joshua, Nebraska
How did your spring rush and summer lul end up? (Also welcome to fall!)
I try that and they were doing the job so fast that the client thought that I was ripping them off. and the job was not done the right way so what do you do in that case
Do you run into speed over quality of work?
No. There are counter balances for quality that ensure they don’t just speed through ✅ it is called Yellow Slip System for callbacks
Trying to understand how this system would work with a 4 man landscape install crew. Projects could take weeks to complete depending on the scope of work. Would P4P system work with landscape construction?
Yes, absolutely! We have a designated Project portal inside the software to do the calculations on large jobs. P4Psoftware.com/training has videos specifically for projects tutorials
Mike I am going to hire someone by February 28. He will work with me, we’ll be a 2 man crew. I will pay him p4p with your software. I’ve never hired someone though, how does p4p affect workers comp pay ins?
Workers comp is paid based on the number of hours worked. This is why the employee will still clock in/out on the software ✅👍🏻
@@MikeAndes awesome thanks a ton!
Daddy's Boys Lawn Care
Great video, Mike! My son is my helper. When he first started, I was paying him by the yard. For example, a $45 dollar yard meant $8. I switched to just paying by 25 % of the day's total. How far off is this from p4p? I thought the percentage was just easier to keep up with versus having a different pay for each yard. My yard prices range from 45-100.
Mike does 33% or more with P4P and on off seasons it's raised to 43% of labor
Yes that’s close percent wise. P4P just also compensates them for non-revenue producing take like equipment maintenance. It also ensures quality via the yellow slip system where the employee has to go back to the property if there is a callback
What is a good gross profit percent for daily revenue ?
There is a video I made last month … just search “good profit margin Mike Andes”
How can you do this on a larger project like 5 day - 20 day projects design build?
Yes we do… and have for projects as high as $80K… and I’ve seen other use it for much larger
@@MikeAndes do you happen to have a video with better explanation on that? Love to hear your thoughts or pick your brain
So how would that work if you had more then one employee on that mulch job? Would it still be a fixed number of $200 and then they would just split it? What if one employee is more productive then the other.
They should be able to get the work done nearly twice as fast with 2 guys. We split it but not evenly. Our split is 54/46 on a 2 man crew.
Yes. They would split it evenly. The imbalance of work ethic is what keeps your internal Team on top of each other and making sure they hold each other accountable… instead of a manager.
It also gets poor work ethic reported immediately since it impacts the entire crew pay on the job.
@@MikeAndes great advice. Thanks for all of the free content as always.
How do you now stop them doing a terrible job and not paying any attention to detail?
Hi!
Who the hell is charging $40 a yard for mulch and install?!? Lol
I charge $120 per yd of mulch.
I totally get what he is saying but this method also sets you up for losing employees. Especially with this type of work its impossible for people to always be in high gear.
Yeah but you can't punish your employees for equipment failure or other things that eat time that's out of their control. That's why you're the business owner.
True. They get manual adjustments for things like that out of their control
12 minute video, 1 minute is how to throw a quote together roughly, the rest is buy my book or the program. Seems like a click bait title for what is here. The last video I watched title had “lawn care millionaire” turned into a sales pitch and was a grab for Jonathan Pototschnik fans.
Don't mistake his videos for just sales pitches. Mike has given a ton of information away for free for literally years. The software will work better than doing it manually, but you can buy the ebook for a dollar and lean how and why to implement P4P by doing it yourself.
@@grandifloralandscaping Mike does have good content and I have been subscribed to lawn care business success podcast and listened to everything, same with business boot camp, I’m subscribed to the business RUclips as well. He has (or the media team) gone more grant cardone style (which he criticized) where it’s always selling. I’m fine with jab jab jab right hook but it is becoming jab right hook right hook right hook.
No one will pay $970 for clean up job no guy wants to work but himself 10 hours day probably two guys and now you to pay $200 hundred each
You’re wrong for one. I do have a client that has paid that much. But this is an imaginary bid of 8 yards of mulch and a clean up. And yes people will pay for it. I live in the country and I have clients that will spend that kind of money.
Keep that mindset to yourself. Just because you can't pay does not mean someone else won't.
I got clients that pay me $1,500 for 8 yards of mulch and plant some small plants and finished before 8 hrs. And I just started my business not bad
Your basically giving a subcontractor system at a hourly rate. Down side to this. Is now you give a shitty job to the men. They work hard and and effectively and still the job in 20 hours. Now they made less hourly. This is forced labour.
Incorrect. The quality of work goes up since the employee is incentivized to make sure there are no callbacks, no damages are made, and a walkthrough with the Customer is completed. All of this is explained at P4Psoftware.com/training
P4p, I would say that employees will be rushing and doing bad job.
If you've hired employees you can't trust and haven't trained properly. There's always a balance between speed and efficiency.
Not true because the employee is on a fixed income for that job so if they go back and have to fix the mistakes they made, they will not be compensated for that extra time since they are not on an per hr income
This is why it’s important to have a p4p system in place that includes accountability. It’s more than just how someone is paid.
@@Daniel-Wendorf0216 but they won't go back, they will say - it is good enough
@@porchard8261 they are forced to go back. Unless you have terrible business values, and if that’s the case, that’s on you as the owner. It’s really a simple concept to understand.