Originally Posted by qualitylandscaping
This is the problem that has created such a difference in mowing prices. Some companies could mow a lawn for $25, while I might have/want to get $40 for the same one.
I think there is a fine line between charging what you need to make a profit, and lowballing. If you read my thread on the municipal bid I just did, my bids were $30+ per acre, while the winning and low bidder was $15 per acre. I cannot understand why anyone in their right mind would mow for $15, and still make money at it, but who am I to judge them.
What I would like to see is that guy charging $15 understand that he could charge $30, and people would be willing to pay it. He either knows his costs, or he doesn't. Once he gets into mowing the properties, it will be fairly obvious whether he knows or doesn't know his costs.
I look at it this way.
I price as if nobody has priced before.
If according to my business model I will make money, do everything right, and show a nice profit and my lawn price happens to come out $25 when others are charging 40. I dont care what the others are charging.
Im making money for me and if its successful, Ill stick with that system.
In my mind Im not "leaving money on the table"
In my mind, i found a better mousetrap.
I may be "ruining" it for others, but now its up to you to compete with me and not the other way around.
Now you can go out of business because you cant match my price and make money. And Im still plugging along.
Im just saying that as an example.
Of course I like to know what the "going rates" are for things but ultimately I price for my business and not anyone else.
I dont care about "ruining the market" or anything to that effect. I know what Im doing and Im profitable and it fits my model.
If Im wrong.....Then Ill be out of business....
Been there...done that.....haha