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Turf supplier: Pricing policy

Getting the price right is very important. You must make sure that the price you charge for your turf is enough to cover all of your operating costs, including your own drawings. Bear in mind that you will have both fixed and variable costs. Fixed costs are those that you will incur no matter how many turf crops you produce - for example land rents, machinery purchase and irrigation costs. Variable costs are incurred each time you cultivate a turfgrass crop and include:

  • seed
  • fertiliser
  • herbicides and fungicides
  • the cost of casual labour - for example, for seeding and harvesting
  • delivery charges

The price you charge for your turfgrass will vary significantly, depending on its quality and the use to which it will be put. For example, you might charge four or five times as much per square metre/yard for specialist turf than for the lowest quality pasture turf. But your seed prices will also be much higher for top quality turf and it may also grow much more slowly than general contract turf. Your seed costs will also be affected by the sowing rate for each crop - that is the amount of seed that is used during seeding. For example, a general landscaping turf might have a sowing rate of between 25 and 35 grams per square metre.