Price Vs. Volume

[fastlane]

I stay home if I don't get my price. If you need the money to pay bills do what you have to do.

[Turf Commando]

Originally Posted by Mark Oomkes

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Join the conversation since when are you shy?....lol
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[Turf Commando]

Originally Posted by sterlinglawns

Well you don't necessarily have to sacrifice quality if your gearing for volume

Tell this to the guys in my area....
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[32vld]

It's not price vs volume.

Volume depends on the equipment and manpower. Price comes in when you use equipment that is not suited for the job. Trying to use a 72" mower on a 1/4 acre lawn or a 20" push to do a 5 acre lawn.

Quality has nothing to do with volume.

Quality has everything to do with price. Cuting corners is necessary when doing a job at a low price. Whether material, time or both have to be reduced for the desired profit to be made. No one will do the job the right way and lose money on purpose.

One can make a mistake and quote the job wrong and suck it up and do the job the right way because they are honest and honorable.

Anyone can do quality and volume.

Anyone can do volume and not do quality.

A choice that anyone can make.

Then there are those contractors whatever the field will low ball the job just to get the work with the intent to cut back on materials, time, or both so still clear the same profit hoping the customer's check clears before the customer catches on.

[jrs.landscaping]

Originally Posted by 32vld

It's not price vs volume.

Volume depends on the equipment and manpower. Price comes in when you use equipment that is not suited for the job. Trying to use a 72" mower on a 1/4 acre lawn or a 20" push to do a 5 acre lawn.

Quality has nothing to do with volume.

Quality has everything to do with price. Cuting corners is necessary when doing a job at a low price. Whether material, time or both have to be reduced for the desired profit to be made. No one will do the job the right way and lose money on purpose.

One can make a mistake and quote the job wrong and suck it up and do the job the right way because they are honest and honorable.

Anyone can do quality and volume.

Anyone can do volume and not do quality.

A choice that anyone can make.

Then there are those contractors whatever the field will low ball the job just to get the work with the intent to cut back on materials, time, or both so still clear the same profit hoping the customer's check clears before the customer catches on.

Well said.

[SRT8]

Originally Posted by sterlinglawns

Where do you fall in between the two general ideas, the first being lower pricing with higher volume. The second being higher pricing with less volume.

We are in the "higher pricing less volume" category. If i picked up everything that I was asked to bid on I would be at 60 employees. If we cant meet decent profit margins then there is no point in doing the job. I'll leave working for pennies to somebody else.

[acculawnsystems]

Get both volume and price. It's all about how many bids you can give during peak times. The more you can do the higher amount new business that you will pick up. For example, we have out close to 950 bids this past spring and picked up over 200 new contracts at the prices that have us a good profit margin. We also obtained these new contracts without spending money on fuel and with minimal time spent. You may ask how this is possible? We used the AccuLawn system to get our bids out instantly. Check out AccuLawnSystems.com for more info. Also, see what the customer will see at AccuLawnCare.com.

[sterlinglawns]

nice posts indeed. There is a grey area in between extremes where a company can focus on lowER pricing, not lowball pricing, to attract and keep a higher number of customers.