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View Full Version : Second Year How do I fix my problems


jeffslawnservice
12-07-2009, 03:03 PM
Well I just finished my first full year in business and i did pretty good, but there are a few things i want to change. Before I started I did not do as much research as I should have and my prices were alittle low as well as my hourly rate. Ive had people in the buisness tell me not to change my prices one just my second season, but it I do I will be making more and never be losing anything off a job. Should I raise my prices to what they should be this year or just take the hit and raise them next year. The only thing I am scared about doing is if I raise my prices and lose seeral customers I will have a problem. What would you recomend. Also if pricing a maintenance account how much do you change per square foot? I tryed searching this and I couldent find anything decent on this. Any help is appreciated. Thanks

joel29m
12-07-2009, 03:42 PM
most of my yards are 35.00 biweekly and a few 25 a week, but im thinking about doing them all 25 a week or 100.00 a month which i will make more that way, and will be easier on my equipment since the grass wont be that high every week. they are nice size lots and i know they might not like it that way but if i explain it to them why then the ok may go. i dont think thats a bad price hell i know lawn services that charge 40.00 a week and theyre solo! to me it depends on the size and what you have to do every week, so please dont go by what i charge my clients, your yards might be bigger but for a 160 by 20 i would say 20 to 25 dollars. this is my first year also so i need some help myself thats why im on here but if i help alittle please tell me so i wont feel bad.

jeffslawnservice
12-07-2009, 09:30 PM
most of my yards are 35.00 biweekly and a few 25 a week, but im thinking about doing them all 25 a week or 100.00 a month which i will make more that way, and will be easier on my equipment since the grass wont be that high every week. they are nice size lots and i know they might not like it that way but if i explain it to them why then the ok may go. i dont think thats a bad price hell i know lawn services that charge 40.00 a week and theyre solo! to me it depends on the size and what you have to do every week, so please dont go by what i charge my clients, your yards might be bigger but for a 160 by 20 i would say 20 to 25 dollars. this is my first year also so i need some help myself thats why im on here but if i help alittle please tell me so i wont feel bad.

Yes my lots are very small. I can get atleast 3-4 done in an hour solo. Thanks for the input.

Seems Landscaping
12-19-2009, 05:42 PM
If your not running in the red with your old customers, keep the same price for them. Price your new jobs with your new rate. When you have enough new customers start raising the price of your old customers.

CkLandscapingOrlando
12-19-2009, 09:01 PM
Leave your current clients price alone and move forward with a higher price.

Az Gardener
12-19-2009, 09:52 PM
If you think you have problems this year just wait. This will be your simplest year in business. I suggest quitting before you are locked into this industry. This business is like any other except it pays less and is harder to get employees for.

The only advantage you have in this industry is the residential market has not been figured out by the bigger companies. That is to say no way to do it in mass and make it profitable. So there is the potential for a home run if you can be the one that does it.

SangerLawn
12-19-2009, 11:44 PM
This spring raise your low rated lawns $5.00 even if they are way underbid. For every 5 customers that agree to it, it would be like adding an extra $25.00 lawn. This will allow you to make up for your losses while working yourself and equipment less.

If you gave honest work this summer you will find that very few people will leave you over the $5.00 extra a week. You will be surprised at how much spend able income you will generate with that extra charge.

bohiaa
12-19-2009, 11:47 PM
WOW I forget how people in the larger citys are,
it's simple to raise prices. write a letter simple and to the point.
remember, for a tree to bloom it must be pruned

HOOLIE
12-21-2009, 02:26 PM
Here's what I would do (and have done):

-Identify your 'bottom feeders' those customers that obviously are paying too little. Raise them to an appropriate rate, you shouldn't care if they walk or not if you're losing money

-Identify your 'keepers' those customers that you make a killing on. Leave them alone...

-For the rest...when in doubt, do a test batch first...send rate increases to maybe 25% of your customers and see what the overall reaction is. If nobody bats an eye then send them out to the remaining 75%

jeffslawnservice
12-31-2009, 02:06 PM
Thanks for all the input guys. The accounts that I do work for all the time I'm leaving the mowing price alone and I can alwasy make up for that deficit in other services that I offer to them. Other accounts that are PITA and just hard to deal with I'm going to raise them so its a win-win for me, either I make more money or they leave and I don't need to deal with them.