Pricing Stress of A Landscaping Business in 2024
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- Опубликовано: 27 дек 2024
- Pricing Stress of A Landscaping Business in 2024
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#keithkalfas #landscapingprices #landscaping2022
Starting a landscaping business can get scary at first. Sometimes, customers will say no to your service only because of how much you charge. The goal is to get as legit as you can, to see that you’re fully insured and licensed, but at the very beginning, you might not be able to afford to do that. Your fears about costs and all those things are real. But, if it’s not legit and the pricing isn’t proper, you can lose your whole business; you can lose everything.
So today, I’m here not to discourage you but to encourage you by talking about it. As Tony Robbins says, the quality of your life is directly proportional to the amount of uncertainty you can comfortably live with.
“Get scientific about your pricing. Get mathematical. Do the math. Find out what’s your break-even point. How much money do you want to make off this? What are the numbers? The numbers don’t lie. Stick to the numbers. Find it out for you, what you gotta do. And then get good at marketing and advertising. Always be marketing, sharing your business on social media, and following up with customers. So you don’t feel trapped and stuck.”
- Keith Kalfas
Why do you have to listen to today’s episode.
02:05 - There will be times when you’ll feel wrong about how much you charge. Your fears are real, but still, do the necessary math.
08:34 - Deal with your fears. When the customer says, you charge too high, stand your ground. Be confident.
12:33 - Doing a business doesn’t have to be a living hell. Have an abundance mindset and live by it.
14:26 - Do the math and find out your breakeven point so you won’t feel trapped and stuck.
Key Takeaways
“There’s a part of you and your business owners that once you are fully aboveboard, you start to feel bad, you feel like, Oh my God, do these customers think I’m greedy or scam artists or rip off? Do they actually understand?”
“I don’t know where you’re at or what your business is. I gotta charge 145 per yard installed. I don't know how much mulch you've installed in your life. I've done 1000s of yards of mulch. Maybe you've done 1000s of yards. That doesn't include bed prep. But when you're pitchforking the mulch around the plants and making it clean, you do it fast, but it's also tedious work and time-consuming.”
“Here’s what happens in your first years of the business. You say that this year, I’m sticking to my guns and charging this much. If the customer says no, then that’s what it is. But when jobs don’t come in, and the customers start saying no to your new higher price, you get scared, cave in, and do it for the old price because you’re terrified of losing that customer. But once you have enough momentum in the game, you know that everything’s gonna be okay.”
“If you’re in business, first, take care of your customers and provide a great service to the community, all the good stuff, but you also need to make a profit so you can take care of your family so that you can save for retirement so that you can grow your business so that you can live a happy, healthy life too.”
I had a lady call yesterday. She was asking what I generally charged for mowing. I gave her a basic range. She then said I have two properties do I get a discount? (Which is common here in Fl) I told her not this year ma’am prices are going up and it’s tough for us as it is. although if your properties are close together I may be able to charge it as one big yard, she said to me, “oh you need every penny you can get huh” that was unbelievable to me , the pure disregard for anyone but herself. I simply told her no we’re beyond booked, so I’m really not interested in working in the 100 degree heat at a discounted rate. I dodged a bullet because I’m sure she wasn’t the type of client that I would have enjoyed dealing with. Some of these rude callers forget that they called us, we didn’t call them, there’s always the few arrogant ones that look down on you, Just had to vent, thanks Keith!!.
Yep. I hear you. Left Florida to Alabama and things are different. But less entitled people thinking they can just negotiate and haggle everything from you.
Yes you need every penny like she does for rent, just like Walmart does too when you pay.
Lmao when she goes to McDonald’s and buy two meals together does she get a discount?
@@shyguy2481 right lol
Dealing with clients like this is always the worst bro , quick question have you ever thought of obtaining funding in order to expand your landscape company to a even greater level ?
im doing my first big job tomorrow, not even that big (big to me $1,100) and about to make commercial insurance purchase. im doing it kieth, im doing it!
Can we get a quick video on your pricing rates now(2024)? Like man hours, price per yard debris removal, price for mulch removal / install ect.?
My husband and I just recently started a landscaping business. We are so great full for your insight. Thank you for these videos!!! Look forward to hearing more do’s and don’ts. Especially the videos of what to expect and how to level up when you hit those rough spots.
Keith. Buy an iPad. Bring it with you to all your quotes and you’ll never leave anything out again. Hire someone on elance to make a Google spreadsheet with all your formulas so you don’t have to add anything up, with a “clear” button for new sheets/quotes. Email them their quote before you even leave their property.
Keith: raise your prices. They’re too low.
For everyone else: On taxes, register as an S-corp soon as you can. Invest your profits in passive income stocks/bonds/whatever you know best.
No discounts, ever. None. Your first price is your last price. Customers that say no to your price are a blessing, more free time to work on yourself/ your business.
Great advice thank you!
One thing you tought me was customers are not your friends your expendable. Dont take it personal dont forget your in business to make money not give away your away
Wow, $145/yard. We are at $135/yard this year and at $110/yard last year. Mulch installed; no extras. Glad to hear you are getting a premium rate.
I'm charging $150 a yard install
I... need to increase my mulch prices, apparently.
Does that price include the actual material of 1 yard of mulch?
I'm just in the mowing and trimming racket, along with Fall leaf cleanup. Thank god I only have to worry about charging an hourly rate.
What’s your hourly Rate?
@@elmiewho29 $60/h. I have a couple of customers who are elderly widows in their mid 80's, living in their house alone. I give them a huge deal. They basically pay me with milk & home made cookies lol. And you want to know something? It's worth it, they're gooood cookies!!
Your the best Keith. I recently caved to a customer on mulch bc she was one of my first customers. I said $200 for 1.5 yards and she said I’m just gonna buy 10 bags, can you spread it for $20. I said yes.. i called her today and said “hey, I’m sorry but i cant do it for that cheap i have to make money.” Bro, she lost it! Then she tells me she has a hair appt (random i know). I’m just thinking to myself your probably paying $100 for that. Needless to say i vowed to nvr budge on price. I told her $80 to spread it. Haven’t heard back lol. Is what it is but my conscience is clean. And I’m content 🤷🏼♂️
Sometimes its good to let go of those first customers. When we start, we start cheap and thats what they see. I raised my prices and i no longer do business with those clients because my new prices are “to high”. gives me more time to do business with the clients who see that my prices match my teams work.
Ya first year did deals they just bite you in the ass. Now i only take on A clients aka ( dont care about price, like my work ethic and being there in a timely manner they pay quick etc ) starting to weed
out trouble clients. You will save yourself lots of stress and only work with people who truly apprecaite your services.
Yes, And your best customers will be happy to pay you full price and tip you on top of that!
@@JohnIsaac88 facts. Thats customer your speaking of is 3 doors down. It’s a priority thing and if a customer uses the concept of “i live paycheck to paycheck” my response is don’t we all. She doesn’t consider her lawn or flower beds as a priority but sure drives a nice car and gets that hair done every month. Can’t feel obligated to cater to people like that.
@@Lawn-Stewards 💯
Love ya Keith. Watching for two years since I started landscaping/gardening. Specializing in Bonsai, Topiary, Hedges, and studying for my arborist certification now. You gave a lot of good advice over the years that made things easier, thanks a bunch.
W
It's those moments where you find yourself in the conversation that you finally listen, appreciate you.
Keith I hear you, sold my first spring cleanup at $950 less 15% spring promo. I priced on man power per hour rates at an estimate time to get the job done. Then I added a little off gut feeling that it's going to be a lot of work. So glad I bought your training programs or I would have ate my shirt on this one.
Yes training programs are certainly helpful
I relate to this man from the very beginning I started to follow him. I don’t have time to see much videos but every time I catch one video of him … he is talking to me or about something I’m going through. You rock Keith.!!
haaa yes!!!! this is how i feel
absolutely love these videos you make buddy!!! please keep them coming.......they are so helpful!!!!! thanks!!!
I use to watch you non stop a long time ago. Been busy with the tree biz and ironically I have a paper towel and a pen in front of me writing down prices of upcoming and past few day jobs. Just calculating away haha glad you’re doing good bro.
It is funny how varied folk's perceptions can be. I've had many scoff at a $450/day rate, but then give an $1800 bid (est. 32hrs) and the lady in the same neighborhood says, "that sounds low". Sometimes it's hard to walk away from clients and yards that you would really love to work with, but you do have treat your business, family, and yourself with dignity and realistic practice. Thank you for being real and forthright about this.
Your videos inspired me bro . I started my lawn service out of my truck of my Honda And now I’m starting my second year thank you
Great video Keith! One thing that you pointed out a while back and what helped me relate was… the abundance mindset.
There’s always going to be customers, new clients that need your help!
Mulch install. No weed or edging included. $45 min mowing New customers. Most old at 37 to 42. Average is at 42.
Half yard 80
1 yard 150
2 240
3 330
4 420
5+ at 100 each
Debris removal is 100 for truck load. Can fit 2 to 6 yards in truck depending on type of debris.
thanks needed this video. between you and mack , I gotten a little firm with my pricing . I recognize my worth. I'm small , just my second year in lawn service.. I snow plow , so looking to merge both services , for each customer. thanks again.
I kinda felt bad , when the customer told you I'll find someone else . this area will never pay $700 for clean up.. the most $175
but like you said , I bang it out . cut, edge , blow property, rake the beds , im out ...
thanks again
I charge wayyy too much thanks to you Keith! High money low stress. Well lower stress
I was always told if you want to run a successful business you have to be willing to risk everything. I mean everything you do, have, own. so I run with that. fear comes but I put it aside as much as I can!
Annualized your numbers. We get 36 weeks of maintenance. Plus billable hours to the customer verses employee hours isn't a 1 to 1 ratio
I started cutting grass 2 years ago out of my car, from there I bought myself an aerator & my father in law gave me a truck. Now Im strictly going lawn care (weed control, fertilization, aeration & power raking). I am now also getting my herbicide certification so I can start to spray lawns by 2023. I am growing at a great pace & I wanna thank this guy for all his help!
I can help you grow at an even faster pace through funding I specialize in funding landscape companies just a few days ago I helped one obtain 500k In 2 days no credit check
You effing rock!!! Thank you!
I quoted $250 on a spring cleanup not knowing the wind would swirl on this one point off the lake im now 1 hr over on the job ...not end of world but a reminder to always give yourself higher quotes (more time) for the different variables you may encounter. Im now flirting with $50 an hr instead of quotes and this does protect me from certain variables. 2nd year in business learned to be confident with clients cause of you Keith. God bless
I assume leaf clean up? Always book more for this. Somehow it's always windy when we do them 😂
Nice vid.
I told others that sometimes you cannot see it but you need to build the confidence to know it is there.
What about that scrum board? It would be great content.
Thank you for you're time keith.
Hello keith,
Great videos, Im wondering if i need should work for a landscapping company first before i start my own business or just jump into it??
Thanks Keith I am at that point right now 4yrs in biggest job 50k but I keep treading water or breaking even and it suxs man, will do the numbers and be prepared to not get every job but I do go back to old prices like you said, much appreciated numbers don't lie.
Thanks bro!!!!!!!
After you've done a proper clean up hand pruning and cutting. It's easy to stay on top of the mowing. All the kit is expensive and we save the home owner days of hard graft. Devil is in the details. Is it a trim a cut or height reduction. I edge your way Kalfas. Long handle Shark tooth lawn edger and a ladies spade.
You’re dammed if you do or dammed if you don’t Keith just pick the course that won’t keep you up at night
Like yesterday we had a customer for mulch and plant some annual flowers and the customer I just bought the material watch his mulch and they did just pay for the labor the labor was $280 for two hours that was $140 per hour
love the real talk, this is what we all deal with!
Thanks my Guy 🤝🏾 answered some questions I had in my own head yesterday cleared them right up
Learn advertising and fill the hopper.. dissolve the bottom as you expand the top! Know your worth!!!
Had to drop mowing for Aldi. It was my only one commercial lawn mowing job. They told me they got audited and now I must carry not only my business insurance but commercial auto liability and Workmen’s Comp. on myself since I have no employees. So basically I would be mowing for next to nothing when me my wife and my insurance agent crunched the numbers. I was making $194 a month for mowing and $100 for parking lot pick up. After Workmen’s Comp. on myself and more auto insurance to meet their requirements I would literally be working each month for them for free. Even my insurance agent said, yeah that’s a really bad thing that’s happening. They want you to pay to protect them more. She said certificates of insurance are also big scams too. It’s a mess. No more commercial work for me thank you very much. They just suffocate you with insurance requirements. I understand if you’re in a huge city and that’s all you do, no problem but much different demographics here in a small town.
I love your passion for the business. It is evident in your videos.
I really appreciate this videos. It’s very comforting knowing we’ve all been through the early stages and been kept up at night thinking about the job tomorrow or something else.
100% agree, we're right at 150 installed minor prep. Most are sticker shocked and say oh no that's out of my budget. Ibthought this was like 500 or so. As far as spring and fall clean up I'm starting at 199. Same thing oh never mind that's too much. Very frustrating when trying to grow and being legit with payroll, insurance, equipment cost etc.
I just wrote a 5k mulchbjob with extensive prep. And it's been 2 days have not heard back. I am going to follow up here in a few days. Same for the mowing/maintenance folks say oh my 60 is way too much I can't afford that. But I'm gonna keep pushing forward. As I learned in our great U.S. Army Improvise, adapt, overcome adjust fire and move out
@@brandonedwards1408 You’re doing it the right way. In the beginning it’ll mean more free time, but this is the time to work on your Google/Yelp/Social media and you’ll attract better customers. If you look at how much you were giving away before, you’re better off charging more for less work.
I'm running year 3. I've got insurance, commercial insurance all that... people understand why the cost is "high". A friend of mine lost his trailer that decoupled and he wasn't insured.
Learning about appropriate pricing to keep your crew running is ESSENTIAL.
I so appreciate your authenticity. Keep being you man. I'd love to meet you in person someday, because I swear you are my northerner equivalent regarding personality (I'm from down south in Knoxville, TN). Thanks for sharing the knowledge and experience man
I love the expressions you do bro hilarious!!! You are a huge inspiration to me and our business. I watched your videos for the last two years, deciding to start a lawn care company just like you. Working for all the local companies making them bank and not a pot to piss in. I can honestly say I took your advice and shit is blowing up on my end. We are from the same area bro, I see your work all through the cities and your trimming of bushes etc is flawless. Keep up the great videos, much appreciated.
Thanks for the info
Thanks for the encouraging video! Helps me have the confidence I know I need to have!
I think the current economic pressures have consumers looking to save money wherever they can. I’ve given a couple of quotes this year and the customer says “oh, you can do better than that”. I just politely tell them the price includes all material, labor, O&P….. that is my best price. I’ve had 2 decline, but most approve the quote. Regardless, I don’t stress over it and most importantly I don’t cave into their pressure.
Great info, thanks for the help👍🏼
Hi Keith love your videos I just started my own lawn care business and I'm slowly picking up clients but my question is since I'm starting idk what to charge such as materials for mulching do I supply or does customer and how to quote them since I have a a crew of three
So good. Would love to hear more and your expansion on this topic!!! ♥️
Keith ma boi your awesome keep grinding
Appreciate you man.
Hey Keith, i started an Upholstery business, thanks for all the videos, you helped me a lot with pricing, and also identify a lot with your story, thanks for all the support and videos you share man, THANKS>>>!
Keith hot boxed the F150 🔥
I liked the monkey bar angle 😂
I love baked beans
Great video
Glad you enjoyed it
Are you a a landscaper?
Yes sir. 20+ years off and on. Been working for myself for about 8 yrs.
Workers comp for myself solo operator is 3%. To hire an employee I figure to pay them it is 25% more than their wage for their base pay. 20 hr will cost you 25 hr on payroll plus business overhead on top of that. Fuel average for me is about $6hr.
Respect the data.
I charge 150 per cubic yard but down here in Texas the big companies say I will deliver say 8 yards of mulch but only take 5 or 6. Some nurseries owned by landscape companies have smaller buckets or loaders and it doesn’t equal to 1 full cubic yard BUT since it’s a so called big company the customer agrees. So when I charge someone for 5 yards the big company can charge 9-10 yards which is insane.
God Bless you sir Your the real deal 🙏 thank you sir for your great content.
Im having a really tough time finding parts and fixing equipment in a timely manner. Were spending $2500/week in payroll, $2,050 /week in gas. Our businesses have been hit the hardest with trucks, trailers, mowers, skid steers, parts, gas, fertilizer, everything seems to be up 30%
@@williamlyons3947 oh we arent going bankrupt. Our money is still safe and we paid almost everything cash, we only buy stuff at good deals, and take care of our equipment. Its just not near as good as it once was. Idc if i work 80 hour weeks, i wont fail.
Great video, watching your content is like going to a comedy show and seeing a movie 🎬 . You are very entertaining to watch, I bet you don't even realize it.
Lol thanks. Sincerely. This makes me smile.
Just curious, u said 145.00 per yard installed, how much is the mulch in ur area. Ours is 43.00 yd.
Brother that’s crazy. I think i pay $29/yard. Maybe the quality is SUPER good at yours or something
@@Lawn-Stewards it's dyed mulch, red, black, brown. Regular is a little cheaper but not much.
Great video Kalfas!
Love your videos man! They are the definition of a straight up front person. I aspire to grow my gutter business and RUclips channel to your level. Been running the business for 5 years and growing every year. Thanks man!
I can help you grow your gutter business instantly through funding Imagine what a 200k cash advance can do for your gutter Buisness brother you can invest in marketing , new equipment , ultimately taking your business to the next level and it’s easy to qualify only requisites we ask for is to have had at least a year in business and to be making at least 10k a month no credit check at all bro
Love the monkey bars in the fog analogy. I also am trying to constantly eliminate risk at the sake of risking it all to become super successful or totally broke. Of course you will hear about the people that made it big but probably not all of the people who are flat broke from thinking they could be rich overnight. Hell, look at all of the crypto millionaires, that asset class hasn't imploded yet but certainly possible.
Great advice. So true.
Good stuff!
Great info Keith
What state or county you're located
I have a small business and like to compare prices to keep competitive and be able to profit better
So its $145/yard installed, does that include weed barrier? @Kieth Kalfas
Does not include weed barrier.
@@keith-kalfas what’s avg. cost for weed barrier?
And I’m a huge fan!!! Hope I can get the opportunity to go on a ride along with you one day!
Keith i have been watching you for years and have taken all advice from you and i love your real and straight up videos.. Please dont start doing all the editing while you are talking and just keep it mostly organic and talk to us.. Please dont edit every few seconds it really feels like you are glitching out every few seconds and it makes it hard to watch for me anyhow.. Just a little feedback for you and keep the wisdom flowing for us.. Thank You so much for all your videos books and information.. Thank You
Hi Keith, do you think it’s tough to just do a flat per cubic yard charge? Some jobs are so simple with very few plants and then some are very difficult with a lot of intricate details.
$120 per yard regardless
I own a pressure washing business but I get more useful information from Keith over the RUclipsrs in my industry. Business wise at least.
Thanks Chris
Facts
Customers also like to take advantage. Under the radar or not, so many people just want a deal. Don’t be that guy. I’d rather refuse a job (I do it all the time) than work for peanuts. My job is hard and dangerous and technical. So people have to pay. There will always be someone waiting to undercut me. Let them work for free.
I love you man
Man, everytime I level up, it seems my expenses and breakdowns level right up, too 🤣🤯 "More money more problems," is hella real.
$240 a man hour??!?!?! 😳😵💫🤣🤣🤣
Mulch is charged per square food
The best price you have to figgure out so it's not a loss
And the Prices given should including all material and Service as the customer does not like an increase in the cost.
You keep it real! 😎
Pricing is difficult. Every job and every customer is different but the operating cost for us is a constant. I’ve run a tax paying contracting business for 30 years and most of these years I’ve charged too little, I’ll need to talk to a psychological for the “why”, but being a local working for my neighbors I have looked after them more than for myself. Working for old people on fixed incomes tugs at my heart and I have tried not to be the greedy contractor guy, heart not head, not a good business approach.
Now I’m becoming the old person in an economy that is becoming more brutal by the day. I cant go back and collect the thousands of dollars I let my customers keep. I got out of the do everything contracting business where my “fair pricing” was not producing the hourly rate I wanted to achieve and moved into lawn mowing ONLY. Then I did all the research I could do to find out what the industry charged as “ going rates”, then I focused on my overhead to streamline any inefficient practices.
Now where I’m at is a one man business, debt free, pricing my lawns below the top heavy operations with a bunch of employees, 5 times the equipment costs, and all the other fluff. I tract my per hour everyday. I have 58 customers and mow about 10 to 17 lawns per non-raining Monday through Friday working days. My average per hour gross is $70 to $100, depending. I still get to be the local “cheaper than the big guy”, but no longer kick myself for being too fair.
Just one example. I got a new customer this season who was fed up with the last guy who was “mean and also overpriced “. This lawn takes me 30 minutes. He charged $80, I charge $50, the customer thought I might do shit work at that price but I was recommended so they took the chance. After 3 cuts the new customer told me their lawn has never looked better and “forced” me to take $65 per cut……okay. I do 2 lawns per hour typically, my drive time between jobs is very little….do the math. As a trade carpenter I would trim out high end homes for a couple of general contractors. They would not pay me more than $35 per hour, I painted houses also for years….best pay was about the same. Now I’ve retired to the green pastures of lawn mowing.
35.5 percent. Is that straight profit or does that include your burden?
I think you should seriously do stand up comedy 😂 🙉
I charged $150 per yard install
Great video I've been watching your videos for awhile now and they are greatly appreciated. I feel like I'm in the same boat. I have 3 have commercial properties and do them all by myself one one of them I've had for a few years lsot it due to covid and pricing. Got that one back this year after they realized the quality of work I do for the money. The other was just mowing the past year and now they are wanting mulch and ornamental bed maintenance and mulch since my bid on mulch was so high they had to get 2 more estimates which made me nervous that I might loose it all I reworked the numbers and was able to get the job even though one of there estimates was 10.00 lower. They realize the quality and car I take of there property. And the 3rd one I got was this year because they heard of my quality of work and pricing wasn't an issue. All 3 of these properties have a total of 200 cyds of mulch combined. It's really hard to compete with Chuck in a truck . Sometimes I feel like I have to explain my pricing and the legitimacy of my businesses to them. I do have insurance overhead and cost to maintain and purchase of equipment. I find this to be frustrating at times. But I def try to stick to my pricing because in my mind I always tell myself "good work isn't cheap and cheap work isn't good . And I let my quality, care and communication with the customer to the talking. But I definitely agree with you a 100% and enjoy how you keep the videos real.
He called the soda pop! Tell me where ur from w/o telling me where ur from lol
I feel like most customers that don’t accept my upped prices this year voted for Biden and are just oblivious, like they ask me why things are more expensive and it s like, uh, have you been to a gas station this year? Have you noticed the 10% inflation in 9 months???
10% increase in my prices only cover the increase in fuel prices. Thankfully I raised 20 on average. Wages and everything else is going up like crazy. Couple years we'll be at $60 minimum.
35% net or 35% gross profit?
Keith needs to admit to the public that he has figured out time travel and that he is withholding it from us. He traveled to the future of 2024 in the year 2022 (video desc. says 2years old) and posted a video about what pricing would be in 2024. 😂
Spent 4 hours on a $200 yard clean job...so much regret
12:30 hahahaha
120 for 2 men is low. I couldnt do it. I would advise all viewers to charge at least 80 per man hour.. uknow Kieth. 60 won't work
100%
Dude it sounds like you need to get a sales process down and a pitch, not scripted, but steps to walk people through a sale. I can help you put it together let me know
💯💯
100
Honestly bro, if your clientele is all worried about CHUMP CHANGE MULCH AND CHUMP CHANGE SPRING CLEAN UP than they might not be the right client. Find a richer town. I know alot of contractors that WILL NOT work at all in these poorer towns. Basically if you have to ask the price you can't afford it. LANDSCAPING is A LUXURY SERVICE
Man looking like Cheech and Chong in the fog 😂 .had to say it.
🔥🔥🔥
Bro. Im the mf trying to figure out how to climb on top the monkey bars. Fuck swinging. 🤣 and it actually happened. Old avg job ticket...$125 . mental break downs ripping hair out. Eviction. now... $10k-20k. God bro. God. All glory goes to the lord god.
E
Keith thank you 🙏 for sharing this. Do you accept emails for new business owners asking questions and advice ? An if so what is the email ? You can direct message me if necessary no worries.
Corey