View Single Post
  #2  
Old 01-24-2013, 03:58 AM
TurfNut TurfNut is offline
LawnSite Member
 
Join Date: Jan 2013
Location: Salisbury,MD
Posts: 10
Everyone has a different business model and price structure. Some folks will probably say I'm nuts, but my pricing stays flat across the board for turf. My overhead and material cost remain the same regardless if its 3 or 43k.

First I do not attempt to compete with the big guys ever. I sell my business on being a professional and providing excellent service and results. I also feel I should be paid well for the work I do.

I market and focus on lots a half acre or less, although I have several 2 acres plus customers. I do hit some resistance on larger properties with price occasionally. My key to gaining these customers is to "SWEETEN UP THE DEAL".Overall I have a excellent closing rate and rarely have folks try do bring me down on my prices although I am not the cheapest.

How do I do it? When I give my initial estimate I also have paperwork for additional services with prices listed. Example $39.00 for crack and crevice weed control each service. So $39.00 x 4 times a year=$156.00. My cost probably $6.00 material for the year. I would treat the weeds at each service no extra travel and takes 5 minutes to do.

When company " X " gives a estimate that shows I am $100 higher for the year. I "DO NOT BUDGE ON PRICE" however I tell the prospective customer, what I can do is throw in the curb, side walk weed control free. So your getting and valuable extra service and $56.00 off. Its kinda a loss leader, but I really didn't loose much.

I generally do well by offering something of value, that cost me little to gain the sale while keeping my prices flat no matter the size. In some markets this may never fly. A large percentage of my estimates come through my referral program, so people called with good reasoning behind it.

My math shows me when you use declining price structures with constant overhead and materials you make less on a big lawn than a small lawn.

I don't agree with that model because my goal is to profit and grow.



Good Luck
Ed
Reply With Quote
 
Page generated in 0.04268 seconds with 7 queries