Question
I am interested in starting a plant rental service...what is the criteria used to determine pricing?  For example, one business wants several fica trees and indoor palms.  They own their own decorative pots.  They called me because their current service is not replacing the sad-looking ficas!  I want to give them a better bid, but I dont know what to charge! (this is in Savannah,Georgia, by the way.)

thanks for your help...

Amy

Answer
Hi Amy,

That is a tough question that does not have an easy answer and I have been in the business for over 20 years.

You have to start by knowing what your costs are. Costs include not only what you pay for new plants, but also your overhead expenses (transportation, administrative costs, insurance, vehicle, etc.). Then you have to decide what is an acceptable level of profit for you for the particular job or for the time spent. Finally, you add the profit to the costs and that is how much you charge your client.

It is nearly impossible to give you specific numbers because your costs will differ due to your location and the costs associatde with your particular business. An acceptable profit for someone starting out might not be acceptable for a more experienced person.

In NYC, we rarely rent plants. We sell them outright to the client and then replace them only if the client pays for a maintenance contract that includes a replacement guarantee. In many locations, rentals are the norm. Over the long run rentals can be more lucrative, but you don't get as much money up front. In general, with rentals, you should expect to have collected enough money within a year to have recovered all of your expenses. Everything collected after that is pure profit.

This is all a very superficial overview. However, if you would like to discuss it by phone, I can be reached at 212-807-7642. I am around for most of the weekend, although in and out.

Please let me know if any of this is unclear or if you have any additional questions.

Regards,
Will Creed, Interior Landscaper
Horticultural Help, NYC

You can E-mail me directly at: [email protected]

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