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  #51  
Old 12-16-2012, 09:27 PM
H & M Yard Improvements H & M Yard Improvements is offline
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Location: Bloomingdale, NJ
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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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  #52  
Old 12-17-2012, 05:58 PM
ryde307 ryde307 is offline
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Again, this is not true.^ Have you tried this? Again we did this only far more extreme in giving away a free month of mowing. If you sell it as hey I will cut your lawn for $10 for you to try it out and see from there then yes you may end up in the situations you explain.
If you do go that route then yes you have a poor thought out plan. If you use this to get customers to call and get started then up sell and sign them up for early service this is an easy win.
If I give away my first mowing for $10 and sell the customer on $36 a week mowing for the summer, you now sell full price mowing for $35 a week who wins? Who had an incentive for the customer to call to begin with? Which one do you think has more people calling asking questions about other services you may offer?
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  #53  
Old 12-17-2012, 06:06 PM
H & M Yard Improvements H & M Yard Improvements is offline
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$35 a week? Yikes!
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  #54  
Old 12-17-2012, 06:10 PM
ryde307 ryde307 is offline
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Originally Posted by H & M Yard Improvements View Post
$35 a week? Yikes!
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I guess I am confused on that post?
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  #55  
Old 12-17-2012, 07:12 PM
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cpllawncare cpllawncare is offline
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Join Date: Apr 2011
Location: Greenville, SC
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Quote:
Originally Posted by ryde307 View Post
I think most have misunderstood the original post, or maybe I did but the OP is stating first 1 time cut for 10$.
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.
I like this idea, one reason it would be good for us is the last month of cutting is Nov and we go to bi-weekly that month, so it would really be only two free cuts.
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  #56  
Old 12-17-2012, 07:53 PM
andyslawncare andyslawncare is offline
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no monetary offer can tell them about quality. How about offering quality and guaranteed time per service? This is crazy talk; please don't tell us that you gained 3 new customers in response, most of us know that type. Not a good idea if you want to make money
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  #57  
Old 12-17-2012, 08:22 PM
Will P.C. Will P.C. is offline
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Originally Posted by H & M Yard Improvements View Post
$35 a week? Yikes!
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I did not post this earlier, but nothing inherently wrong with 10 dollar cuts to get your foot in the door. It can't be as succint as "Call me, $10 mow and blow"

You have to figure out a clever campaign where they committ. Some guys are excellent salesman and they might be able to gain a paver patio, snowplowing, install, or whatever job that much more profitable than cutting grass.
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  #58  
Old 12-17-2012, 08:33 PM
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cpllawncare cpllawncare is offline
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Quote:
Originally Posted by andyslawncare View Post
no monetary offer can tell them about quality. How about offering quality and guaranteed time per service? This is crazy talk; please don't tell us that you gained 3 new customers in response, most of us know that type. Not a good idea if you want to make money
The problem is Quality is subjective at best, I don't care if you have the best quality out there, I know ours is pretty damn good from the reviews and feedback we get from our customers, but there is always those few that it doesn't matter how good you are they will tear you apart. "FREE" is the most powerful word in marketing and in this case is used as a call to action, and used to get the calls flowing which most of us need after a few months off, You can preach quality all day long but if the phone isn't ringing you have no chance to prove it.
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  #59  
Old 12-17-2012, 10:09 PM
Orderlawncareonline Orderlawncareonline is offline
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$10 first mows. WoW!

I think that is a good idea for the short term but will cause you problems in the long run. My first lawn care company we took the lowballing approach and gained many customers fast. We soon figured out we weren't making any money we were actually loosing money. As soon as we went up on our prices we lost almost all our customers. The lesson i learned was price should never be used in gaining customers. Give a percent off for the first mow and throw in a referral program and that should help but stay away from the lowballing even if it's the first mow. Imagine if you get 500 customers at that price. Your loosing thousands and thousands of dollars.
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  #60  
Old 12-17-2012, 10:27 PM
H & M Yard Improvements H & M Yard Improvements is offline
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Location: Bloomingdale, NJ
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Quote:
Originally Posted by Orderlawncareonline.com View Post
I think that is a good idea for the short term but will cause you problems in the long run. My first lawn care company we took the lowballing approach and gained many customers fast. We soon figured out we weren't making any money we were actually loosing money. As soon as we went up on our prices we lost almost all our customers. The lesson i learned was price should never be used in gaining customers. Give a percent off for the first mow and throw in a referral program and that should help but stay away from the lowballing even if it's the first mow. Imagine if you get 500 customers at that price. Your loosing thousands and thousands of dollars.
That's what I'm saying. Imagine if just for the sake of argument that they do get tons of customers with that approach. When the leaves start falling in the fall, they may piss off and lose a majority of their customers when they want their lawns clean and the LCO can't do a hundred clean ups in a week.
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