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Old 03-02-2014, 07:47 PM
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TPendagast TPendagast is online now
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Join Date: May 2008
Location: Wasilla, AK
Posts: 3,115
well you don't need to raise prices for the sake of raises prices.

IF you raise your prices 3% every year thats a 30% increase in 10 years.
the passage of time does not dictate the cost of anything.

The economy ebbs and flows.

Prior to 2008, prices were at a near all time high.
But incase no one noticed there was a big economic crash.
In our industry, many guys who were doing installs literally disappeared.
Maintenance was the new life blood.
More people ,not just scabs who lost their jobs, but reputable companies started getting more an more into maintenance. This drove prices down.

Prices are dictated part by the cost of doing business, but also part by the law of supply and demand.

In some areas people can't get over $40/hr
in others people are getting twice that.

The whole "oh I get high prices because my work is the best" thing, is like Dimension claiming they can guarantee you no lawn weeds.

Most people who say that, want to live in a world that if everyone just fell in line and held to the high prices that they pick out of the air, that no one could get a lower price, and therefor people could just name their prices.

But this isn't how competition and supply and demand work, this is the Union Mentality.

The customer can only pay so much, at some point a $50 lawn is not worth $100, no matter how long you have had it.
Ive seen more and more homeowners go out and buy decent lawn equipment and do it themselves, because they had bigger properties sand fiscally it actually made sense for them because what the service providers around them were trying to demand for the job.

Many of you weren't around for this when it happened before, mid 80s.
Back then, most decent lawns were 'in house'.

Late 80s to Mid 90s saw a lawn explosion as companies were able to get better productive equipment and use less man power to do more.
Before that, estates had gardeners and commercial properties had grounds crews.

I spent much of my time early on in this industry, giving presentations to these types of customers convincing them I/We could save them money and give them a better product.

But we are seeing that come full circle again, as properties are going back in house…. so you can't just say you have to pay more, and more and more every year.

Just like there is a market saturation where one more landscaper will break the economy and make the work so cheap it's not worth doing at a loss, there is also a market ceiling, where the customer simply isn't willing to pay a price for it and will go without or do it himself, or find an illegal means to getting it done (like hiring illegal labor)
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