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View Full Version : When to raise prices


laborador
03-06-2004, 05:25 PM
I went to the flea market today and ran into a guy that sharpens blades. He told me he was in the business from 1973 to 1980. I mentioned to him you must of been mowing an average size lawn for 5 or 10 dollars, to my surprise he said he did them for 25 to 30 dollars. Thats what we do today. Is there any one here thats been in the business since the 70s and have the same prices today as you did in the 70s. Does this mean that we will be doing these same rates for another 30 years or so.

bayfish
03-06-2004, 10:29 PM
Sounds like a saturated market.

My guess is that more people are opting to use LCO's today than before due to better economic times, and he could not do as much work in a day then as we can do now. Efficiency has kept prices low.

Evan528
03-06-2004, 11:25 PM
Seems to be the same in my area. I have talked to guys who have been in this business for 30+ years and tell me lawns were being done by the same price 30 years ago as today if not more. You guys might tell me I need to raise my mowing prices and I do every few years.... But because most landscapers are still chargin the same 25 dollars they did in 1980 how can I come in a the 40 its really worth? This is why I choose to make mowing only 30% of my business.....just isnt profitable enough. More like a nessesary evil.

Mdirrigation
03-06-2004, 11:28 PM
He Is correct , the prices are the same as they were 20 years ago.
I was getting a $ 25.00 minimun in 1982 . A $50.00 job 20 years ago is a $ 35.00 job today. I have 10 acounts that pay extremely well , I sold the rest 2 years ago to my foreman. I havent been happier . Working less and making better money by dirvisification.

tiedeman
03-06-2004, 11:45 PM
I have to agree that the lawn care prices haven't changed that much. With more competition driving the prices down its hard to raise prices on customers and justify it. You just have to educate the customers on why the higher prices. I have even went as far as letting customers get a glimpse of my overhead and the cost of running the business.