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Old 12-16-2012, 10:27 PM
H & M Yard Improvements H & M Yard Improvements is offline
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Join Date: Sep 2011
Location: Bloomingdale, NJ
Posts: 214
Quote:
Originally Posted by ryde307 View Post
I think most have misunderstood the original post, or maybe I did but the OP is stating first 1 time cut for 10$.
I don't know your location but example here is we average 25 mowings a season. Your basic yard costs $35. 25x$35=875. minus 1 free $35= $840 / by 25 mowings New price is $33.60. I have lost $1.40 per week on the cut. Not much money to gain a customer. Most spend considerably more for customer acquisition.

Just to really get you going we ran an ad for a 2 week period this spring for 1 month of free mowing. If you are just giving the free or discounted mowing away and not signing some type of term contract, then yes you just lost money. We gave away your last month of mowing free with the 1 year commitment. Most then signed up for 3-4 other services that have higher profit margins. (this was the point) For the deal to be valid you had to stay committed all season. As well as the last month of mowing for us is pretty easy with very little lawn growth from week to week. This has it being or lowest overhead month. I can assure you we did well with every customer we signed up this way and made money on these home along with increasing profits on existing with tighter routes.
If he charges $10.00 for a first cut the customers that he may get will expect the same price all the time. Either that or they will just use him for that one time and move on and expect to get the same price from the next LCO. it's ludicrous prices like this that make it harder and harder for other companies to make a living in this industry! i can't see how this op can pay for his fuel, insurance, taxes, maintenance etc by charging $10.00 a cut. Sounds to me like he's paying them to mow their lawn! I don't think he will be in buisness very long. Just my 2 cents!.
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