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  #8061  
Old 03-02-2007, 01:57 PM
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RedWingsDet RedWingsDet is offline
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Join Date: May 2004
Location: Detroit
Posts: 3,562
I agree with the above posts, but also, for me, I can get some jobs done quicker with my WB than rider.
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  #8062  
Old 03-02-2007, 03:36 PM
Jason Pallas Jason Pallas is offline
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Join Date: Jan 2001
Location: Grosse Pointe. MI
Posts: 1,321
Yeah, unfortunately you don't set your prices, the customers and the market do. With the economy the way it is, I'd hate to be getting into this business right now.
It's so bad that I went to personally collect on some accounts in GP that were late (pretty good customers) - only to find out that they just up and moved, walked away from their home and let the bank foreclose on it. That's about the fourth time in the last 5 months that this has happened to us. People are just walking away from homes or doing foritures of deeds in lieu of foreclosure. This economy is BAD and it ain't gettin better any time soon.
Hang on - cuz our costs are about ready to go sky high (with increased insurance and gas, etc....) and the value of our services won't do anything but decrease. This should be a really great year in Michigan ......
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  #8063  
Old 03-02-2007, 03:50 PM
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bigjeeping bigjeeping is offline
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Join Date: Aug 2005
Location: SE Michigan
Posts: 900
I just mailed out 110 auto renew letters to resis.... with an average 8% price increase from last year. Hopefully the economy here in a2 isn't as bad as you guys to the east.
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  #8064  
Old 03-02-2007, 05:55 PM
Eclipse Eclipse is offline
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Join Date: Mar 2004
Location: Michigan
Posts: 1,149
Quote:
Originally Posted by bigjeeping View Post
8% price increase from last year.
I wish I could get away with that.
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  #8065  
Old 03-02-2007, 06:31 PM
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bigjeeping bigjeeping is offline
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Quote:
Originally Posted by Eclipse View Post
I wish I could get away with that.
Increases worked out fine last season... this year I've got my fingers crossed tho
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  #8066  
Old 03-02-2007, 06:55 PM
stuffdeer stuffdeer is offline
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Join Date: Jan 2006
Location: Southeastern Michigan
Posts: 1,418
Quote:
Originally Posted by Mowerboy04 View Post
hey guys would anyone like to meet up for lunch during the trade show next week? i was thinking on the first day of the trade show we could meet at the coney island down the street at like 12:00 or something. anyone interested?
the coney island is in the shoping center at the coner of grandriver and beck road.
alex

Alex....I will not be able to make lunch, but could do dinner or something after the show, as I cannot take off of school. I will most likely be going Monday. IM me on AIM and we can talk about this.
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  #8067  
Old 03-02-2007, 09:26 PM
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Leisure Time Lawn Care Leisure Time Lawn Care is offline
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Join Date: Feb 2007
Location: SE Michigan
Posts: 145
Flyer Distribution

Hello, I am getting back into the business after a 11 year vacation and was looking at getting 20 or 30 customers, and was wondering what is a good time to hand out flyers in southern michigan. Any help would be great

Thanks:
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  #8068  
Old 03-02-2007, 09:47 PM
Mower For Less Mower For Less is offline
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Join Date: Mar 2005
Location: Warren, MI
Posts: 823
Quote:
Originally Posted by Five Star Lawn Care LLC View Post
if your market will only let you charge 22 then thats what you can charge
I am a little bit miffed that so many are in agreement with this line of thought on here. I understand to a point where the markets will effect price, but to go so far as to say you cannot deviate from the market rate, or must do it for market rate or less to earn business, I disagree with.

When I give a price, my FIRST consideration is what will I have to charge to make a profit on this job? I will not bid below my cost REGARDLESS of the market rate. If I can do it for market rate or less and make a profit, its a deal.

For example, say I would LIKE to charge $40 to cut a house in 15 minutes. The MARKET average however charges around $18-20 for this service, so obviously the market will keep me from charging $40. My personal average is closer to $22 for this same house, however. Thats on average at least 10% over the going market rate. And thats not taking into account that other people will bid on those same houses for $15. That really screws up the market rate, but does not make me lower my price.

I guess what I am getting at is that there are many factors that go into your final price, and market rate is only one of the many factors, not the only factor. Anybody who is setting there prices where they are because "thats what the other guy charged" is headed for certain doom.

In Conclusion: Know your costs before you bid, and only use market rate as a guideline to see if you are remaining competitive or not.

Kevin
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  #8069  
Old 03-02-2007, 09:51 PM
Mower For Less Mower For Less is offline
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Join Date: Mar 2005
Location: Warren, MI
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Quote:
Originally Posted by Jason Pallas View Post
I'd hate to be getting into this business right now.
How many Ford buyout recipients do you suppose are going to be cutting lawns this year? This should be a really interesting year.

Kevin
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  #8070  
Old 03-02-2007, 11:19 PM
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bigjeeping bigjeeping is offline
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Join Date: Aug 2005
Location: SE Michigan
Posts: 900
Quote:
Originally Posted by Mower For Less View Post
In Conclusion: Know your costs before you bid, and only use market rate as a guideline to see if you are remaining competitive or not.

Kevin
It's all economics.. im a business major, and believe me the market always decides the price. We exsist in a free enterprise/capitalist economy. You can bid whatever the heck you want!
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