Today, a caller by the name of Nathan Jones had a question about creating standardized pricing for estimates… specifically, for fall cleanups and landscaping jobs.
Why is Standardized Pricing Good and Necessary?
1.) Is essential to creating consistent profit margin
2.) Must be done for the business to scale and grow
3.) Much easier to train an estimator as your business grows
Why is Standardized Pricing Hard to Do?
1.) You’ve always done it off the top of your head
2.) You think you need years of experience to eyeball work
3.) It takes a lot of thought and time to create a standardized pricing menu
How to Create Standardized Pricing
1.) Track time and expenses at all mowing and landscape jobs
2.) Determine break even point and expected/target profit margin
3.) Set your hourly rate for mowing and landscape jobs (this should increase as you grow and provide more value)
4.) Bundle services and products into a menu-like list so that the estimator can easily match “what is needed” to the corresponding price
To get one-on-one help with creating your standardized pricing list visit LandscapeBusinessCourse.com.