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  #1  
Old 09-23-2009, 10:58 AM
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Lazer Cut Lazer Cut is offline
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Raising prices

I have been running numbers... I found that I am a complete idiot. My average yard takes about 45-55 minutes solo. I charge a average of $25 but have some $65-85. I do not think that I am charging enough. I would like to get $30-35 for the yards that I currently charge $25. They warrant the 30-35 but the customer shy'd away. I would like to at least get 30 how can I raise the price and present this to the customers... maybe raise it $3 for next year? I made $355 last week with cutting 14 lawns. That is roughly $25 avg. I'd like to make more to hire a helper with me so I can knock out more yards. Next year I plan on attaining 60-70 accounts. I currently have 29. Could use some help on budgeting also. I need to crack down on things.
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Old 09-23-2009, 11:19 AM
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GreenmanCT GreenmanCT is offline
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gotta have the 35 minimum.
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  #3  
Old 09-23-2009, 11:22 AM
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My minimum charge is $25 and those lawns all take me less than 25 minutes to do solo, typically between 15 and 20 minutes. If I were going to be somewhere for 50 minutes, I would want around $50. The best way to increase price is not in the middle of the season. You will want to raise your prices at the beginning of the season.

What you really NEED to figure out is how much it costs to run your equipment per hour. That will let you figure out how much you need to charge per hour to make money and still cover all of your expenses.
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Old 09-23-2009, 12:00 PM
Ronniecoleman Ronniecoleman is online now
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It sounds like you have some biweekly's, you need to start pricing those at a higher rate. For instance if you charge $30 for a weekly mow biweekly needs to be $40. I would wait until spring to raise any prices.
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Old 09-29-2009, 12:29 PM
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DA Quality Lawn & YS DA Quality Lawn & YS is online now
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Quote:
Originally Posted by Ronniecoleman View Post
It sounds like you have some biweekly's, you need to start pricing those at a higher rate. For instance if you charge $30 for a weekly mow biweekly needs to be $40. I would wait until spring to raise any prices.
Yep biweeklies need to be charged at least 30-50% extra - at least thats what I do here in the north. Extra trimming is involved, and sometimes the lawns get overgrown. A lot of the time biweekly business is simply because the customer does not want to pay for good, regular, weekly service.

Better yet, dump the bi-weeklies.


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Old 09-29-2009, 12:51 PM
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HOOLIE HOOLIE is offline
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Time to 'man up' and run your business. It's simple really, you notify your current customers that their price is going from X to Y. You'll lose some but pick up new ones at the higher rate. Such is the cycle of business.

I would actually, raise them now. Most customers are not going to go looking for another LCO this time of year. Get in used to the higher rate now. I always do my price hikes late in the year.
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  #7  
Old 09-23-2009, 12:43 PM
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pflasch pflasch is offline
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$35.00 minimum charge! This is for lawns that would take less than 30 minutes to complete.
If longer, you could figure $1.00 / minute... and that's "ramp down to ramp up" time!

Depending on your area, you may have to adjust this number slightly.

You should also figure in travel time to get there. i.e., if it's 10 minutes away from your last stop, figure in an add'l $5.00 - $8.00.

There are several "Lawn Care Calculators" out there.
You measure the property perimeter, how many obstacles (trees, swingset etc.) and the calculators give you (based on what you told it was your per/hour rate was) a price to quote.
If you don't know what your "hourly rate" is... (based on ALL of your costs) you need to go back to the basics of business!
You NEED to know this BEFORE you quote anything... otherwise you are guessing, and probably going broke doing it!!

I'm going to guess that your main competition (I'm talking companies that have been around for more than 5 years... and not the "lowballers" in your area) might be charging $45 - $65 for the SAME property probably know what their costs are... and are making a good profit... and have nicer equipment... and will probably be around next year!!

BTW, your numbers are WAY OFF!!!
You say that you averaged $25.00 / lawn... but you had some properties that you charged $65 - $85? The question that I would have is "how long, in minutes, did those accounts take you"?
AND, after EXPENSES, what did you actually put in the bank $$$$????... and don't forget about depreciation, gas, insurance (I hope that you do have insurance, don't you??? Truck, medical, workers comp etc) trimmer string etc.

At this point, I'm guessing that McDonald's would have probably paid you more than what you may have taken home after ALL expenses?

Do yourself a big favor... figure out EXACTLY what you need to charge for your TIME to be profitable!!!
If you loose 1/2 of your $25.00 or less properties, so be it, because you will work less hard, and make more on the other properties that you end up with... THEN, as you get new clients, charge the CORRECT rate for their property, and grow your business that way!

Good luck to you!!
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  #8  
Old 09-23-2009, 12:47 PM
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MOHUSTLER MOHUSTLER is offline
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I had a commercial cutter tell me that he does his bids at $1 a minute. I thought he was stupid and then I sat down and figured up some totals, and its really not to far outa line.
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  #9  
Old 10-25-2009, 10:34 AM
lawnman_scott lawnman_scott is offline
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Quote:
Originally Posted by MOHUSTLER View Post
I had a commercial cutter tell me that he does his bids at $1 a minute. I thought he was stupid and then I sat down and figured up some totals, and its really not to far outa line.
I would say its not too far out of line at all. You know they changed things on this site. You used to be able to go back and see all posts ever, now they only go back 1000 posts. If you could, you would see people talking about $1 per minute back in 2001 when I joined this site. No raise in 8 years, and the thread is about raising prices????? I think people are just starting too damn low.
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  #10  
Old 10-28-2009, 07:16 AM
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Charles Charles is online now
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Quote:
Originally Posted by lawnman_scott View Post
I would say its not too far out of line at all. You know they changed things on this site. You used to be able to go back and see all posts ever, now they only go back 1000 posts. If you could, you would see people talking about $1 per minute back in 2001 when I joined this site. No raise in 8 years, and the thread is about raising prices????? I think people are just starting too damn low.
I agree. What people should do is figure up their NET profit at the end of the year and estimate how many hours they spend on anything related to their business. I bet they are making minimum wage or less(if you are charging $25 to $35 per hour) and I bet their net is around the poverty line for one person. Poverty line is between $14,000 and $15,000. http://aspe.hhs.gov/poverty/09poverty.shtml
You don't need to ask anybody if you should raise your prices if you do the above. If your area won't support higher prices then there are alternative businesses and jobs out there. Because your future in lawn care is very dim. You have no retirement. No extra money for investments. NO money for Health care etc
So sit down and crunch the numbers.Annual Gross income minus fuel, parts insurance, milleage$$, equipment, advertising etc...
Hopefully you married a money lady. Hang on to her like your life depended on it

Last edited by Charles; 10-28-2009 at 07:46 AM.
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