Know Your Numbers: Exposing the Hidden Costs of Your Lawn Care Business
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What hidden overhead expenses are draining lawn care profit margins?
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Hello and welcome to the Green Industry Podcast, your go-to guide for building a more profitable and thriving lawn care and landscaping business. Your host, Paul Jameson, is the author of five best-selling books, including Cut That Grass and Make That Cash, and his latest, Level Up Your Money. All available on Amazon and Audible. Now, get ready for more expert insights and practical strategies. to boost your business and level up your life. Here's Paul Jameson.
And one. Hey guys, welcome back to the Green Industry Podcast. I'm your host, Paul Jameson, down here in sunny Florida, where it is sunny. And it is Florida. It's hot. It's very, very hot. Well, if you are tired of working your tail off from sunup. So sundown. We call it dark thirty. What time do you get done working? Dark thirty. You work to sundown. And then you look at your bank account. Maybe you look at it every day. Like I do. I try to. Look at it at the end of the month. And Where's all the money? There's barely anything left. Dave Ramsey has a saying about theirs um More month than money. Meaning it's not the end of the month yet and you still got bills, but where's the money to pay the bills? Guys. If you're terrified
To raise your prices because you think your customers will cancel. You're letting your lawn business slowly bleed out. between these crazy gas prices And the hidden Which I'm gonna I'm gonna uncover it here in a moment, but the hidden overhead expenses you aren't tracking. Most of you Are severely underpriced. And essentially you're paying your customers to cut their grass. I go to Equip Expo every year. There's twenty seven thousand landscapers there, maybe, maybe close to thirty thousand now. Show just keeps getting bigger and bigger. Most of them. are severely underpriced. Not just underpriced, severely underpriced. And It it's it's a problem in our industry. So in today's show I'm gonna share What it actually costs to run a business and the top ten reasons, you must raise your prices immediately.
And I'm going to share the action steps to do this without losing your best client. So grab a notepad if you can. If you're driving, I understand. Please listen carefully and hopefully later you can go and grab that yellow pad and write these down. So I'm going to go through the the cost quickly. We've been talking about this on the program for a while. So I'm going to go through this list very quickly to recap what I've been uh preaching from the mountaintops here of what it costs to run a business. You got your Um for your truck, for your mowers, um, which these prices right now are high. Hopefully they'll come down, but at the moment, during the busiest time of the year, they're high. You have to buy your uh strength trimmer line.
If you're using uh crest commercial, you got to buy all your batteries for your your crest commercial equipment. If you're using gas-powered equipment, you got all your two-cycle oil. You have your um edger blades. Hopefully, you're swapping those out. Your mower blades, hopefully, you have a whole bunch of mower blades and you're um swapping those out for sharp mower blades every day.
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Chapters
7 chapters
1
What hidden overhead expenses are draining lawn care profit margins?
0:00–5:00
2
How do equipment costs (trucks, mowers, blades, batteries) impact my bottom line?
5:00–8:32
3
Why is payroll the biggest expense and how can I manage it effectively?
8:32–13:08
4
What role do fuel, insurance, and labor rate increases play in pricing decisions?
13:08–17:29
5
How can I use a price‑increase letter template to raise rates without losing clients?
17:29–22:48
6
What steps should I take to identify under‑priced jobs and adjust prices immediately?
22:48–25:24
7
How do I calculate target man‑hour rates to ensure profitability?
25:24–27:43
Speakers
1 identifiedMore from Green Industry Podcast
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The Social Media Strategy That Actually Makes You Money
Why You Should Be Charging $100+ Per Man-Hour with John Pajak