Register free!
Search
 
     

Click for Weather
Reply
 
Thread Tools Display Modes
  #1  
Old 04-01-2009, 07:54 PM
turf hokie's Avatar
turf hokie turf hokie is offline
LawnSite Silver Member
 
Join Date: Oct 2003
Location: Metro NY
Posts: 2,675
What is your minimum....

not price...but what square footage do you start your minimum price at. We start at 4,000 sq ft but with competition around here I dont know if we should make our minimum stop charge start at 5,000. It really does make a difference in getting or losing some of the average 10k lawns around here.

All the big boys are doing first app for 29.99 up to 5,000 this year.
__________________
"What do you mean we canít get rid of those weeds in time? Then go over there and put some fancy signs with Latin names in front of them."
Walt Disney
Reply With Quote
  #2  
Old 04-01-2009, 08:45 PM
abrightday's Avatar
abrightday abrightday is offline
LawnSite Member
 
Join Date: Feb 2009
Location: Deltona, Florida
Posts: 125
Yea BUT the big boys can't give the kind of service a state certified operator can. Individual attention to detail. If your competing with them on price your gonna lose,,but look at what you get. Enough said!
Reply With Quote
  #3  
Old 04-01-2009, 09:02 PM
MnLefty MnLefty is offline
LawnSite Senior Member
 
Join Date: May 2006
Location: Minnesota
Posts: 359
Hokie-

Only you can answer that for yourself. Only you will know if you can work a little cheaper, or how many jobs you might be missing out on by being a couple dollars higher. If you kept your same minimum charge, just bumped it to 5000 instead of 4000, on the 10K's your talking about a difference of your per K $ upcharge... 4-6 bucks? Doesn't sound like much, but don't forget to look at it this way... (simple numbers just for illustration)

20 @ $50 =$1000 gross. Now take that 5 dollar difference into account.

22.2@$45 =$1000 gross. But don't forget extra cost of product, time, fuel etc... You did 2 more lawns and pocketed less money...

Now if that 5 dollars is going to be the difference from 20 to 30...? (relatively speaking of course, since I have no idea how many accounts you have) I know this is not new to you, but sometimes it helps just to see it again. Only you can decide what your work is worth, and how much your price affects your total business...
Reply With Quote
  #4  
Old 04-01-2009, 09:11 PM
Utahlandscaping Utahlandscaping is offline
LawnSite Member
 
Join Date: Mar 2009
Location: Salt Lake City, UT
Posts: 20
Sell value, not price. Our minimum is $39 regardless of how small the yard is. Abright day is right on the money about small company vs large. Don't let chemlawn or any other large company dictate your prices.
Reply With Quote
  #5  
Old 04-01-2009, 11:05 PM
JDUtah's Avatar
JDUtah JDUtah is offline
LawnSite Silver Member
 
Join Date: Nov 2007
Location: UT
Posts: 2,671
$45 min up to 5,000 for me. I service monthly.
Reply With Quote
  #6  
Old 04-02-2009, 08:46 AM
grassman177's Avatar
grassman177 grassman177 is offline
LawnSite Fanatic
 
Join Date: Oct 2007
Location: leavenworth, kansas
Posts: 9,786
we start at 3000ftsq on the list of pricing, but i usually end up starting at 5000 as i have figured the 3000 price is too low for the stop time unless itis next dorr to something else. then i price normally
__________________
all is fair in love and grass! Man, it smells like sheet, do you smell that!!
Reply With Quote
  #7  
Old 04-02-2009, 02:55 PM
lawn king's Avatar
lawn king lawn king is offline
LawnSite Silver Member
 
Join Date: Dec 2004
Location: abington massachusetts
Posts: 2,116
We have had a 4000 sq. ft. minimum since day 1. $50. is our bottom line on an app. always has been!
__________________
When i find myself in times of trouble, mother mary comes to me, speaking words of wisdom let it be.
Reply With Quote
  #8  
Old 04-02-2009, 03:24 PM
turf hokie's Avatar
turf hokie turf hokie is offline
LawnSite Silver Member
 
Join Date: Oct 2003
Location: Metro NY
Posts: 2,675
Thanks guys, I never compete on price, our service and product are far better than the big boys.

We have always had a 4k minimum at $45. I think it is just the economy around here lately that is making people look harder at price and not so much at quality of service right now.

I had a estimate that we went on we were almost double the current contractor, fine, but the guy had grub damage, dead crabgrass everywhere and huge patches of ground ivy. I told him that would not be an issue with us and that he obviously was getting shortchanged on the service because the guy could not do what he was supposed to at that price, he didn't care. He wanted my service for the other guys price, not happening.

the reason I was a bit concerned is that I have lost a number of average size lawn bids by 30% or so. I am more than comfortable with my numbers, as they usually compete with the reputable guys around. It is the full service companies and large outfits that are killing me. We all know that, in most cases, these two segments are not providing the type of service that we are. But lately a lot of people seem to be taking the "we're gonna try them" approach and "we will keep you in mind if it doesn't work out"

I just think some of these guys are desperate for work and willing to drop prices to "keep thier guys busy"

Oh well, that is my rant for the day.

Thanks for reading
__________________
"What do you mean we canít get rid of those weeds in time? Then go over there and put some fancy signs with Latin names in front of them."
Walt Disney
Reply With Quote
  #9  
Old 04-02-2009, 05:03 PM
Whitey4's Avatar
Whitey4 Whitey4 is offline
LawnSite Silver Member
 
Join Date: Dec 2007
Location: Long Island, New York
Posts: 2,448
hokie, I have almost no lawns larger than 4k.... most are about 3k. I'm at $38 to $40 an app. I'm one of those small full sevice operations as you know. I really don't know what TG charges around here, but the LCO's are all at $40. This is a very small sample size, as every account I have is in my own town, all within two and a half miles of my home.

I don't even go after the larger properites, I'm not set up for that market equipment-wise. I have seen a lot of activity from people looking to save money here. The only reason I'm getting new customers is because of referrals. Customers are definitely price shopping. I can usually convince them to go with my standard pricing, but drop to $38 an app when pressed. Some of them just seem to want some sort of price break.

I feel much more secure offering maintenance and apps. I did not lose a single customer last year to this. I feel that the maintenance is the reason for the customer retention rate primarilly, but overall results are what makes it work for me. A lot of customers don't understand the value, benefit and results of a good apps program, but they like the results.
__________________
Just me and Badger the beer dog!
Reply With Quote
  #10  
Old 04-02-2009, 05:14 PM
lawn king's Avatar
lawn king lawn king is offline
LawnSite Silver Member
 
Join Date: Dec 2004
Location: abington massachusetts
Posts: 2,116
Lowering your standard rate to compete is a poor business decision! I have always been the most expensive lco in this area, we are worth the extra money. Top of the line chemicals, state of the art equipment, decades of experience, superb customer service, this is where those extra dollars go!
__________________
When i find myself in times of trouble, mother mary comes to me, speaking words of wisdom let it be.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 12:17 AM.

Page generated in 0.10781 seconds with 7 queries