$18.95 per Mow?!!

Discussion in 'Lawn Mowing' started by SnoMower, Apr 8, 2011.

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  1. ajslands

    ajslands LawnSite Silver Member
    Posts: 2,238

    Someone once told me that you can't make money charging less than 30$ a lawn.
    It was done over the phone, but I baiscally told him he was full of it!
    Posted via Mobile Device
     
  2. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    This statement is right on the money. It screams dollars and sense.
     
  3. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,536

    Somebody probably told the McDonalds brothers they wouldn't make money selling 19 cent cheeseburgers too.
    Posted via Mobile Device
     
  4. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284

    Not saying you are wrong. But if you could charge more and still get your lawns would you? Would you choose to make even more money or just stay where you are at? Again I am not saying anyone is right or wrong.


    But the lawn services on this site havent "Served Billions of Customers". Penny profits for super large companies translates into millions in profits. These places sold cheap with the thoughts of expanding to many places to generate more and more sales. The volume approach.

    Penny profits for many lawn companies here turns into penny profits or no profits. It's been shown on here too many times.

    But again if somone wants to have the low priced volume approach or is happy with a little more than minimum wage. Thats their choice. I'll stick to whats working for me, which is not that.
     
  5. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,536

    My point was three fold.
    1. Incentive for me is when somebody says I can't do something.
    2. McDonald started with one grease pit of a stand.
    3. Your is business is just that. As long as you are legal and ethical you will do fine in any business.
    Posted via Mobile Device
     
  6. hackitdown

    hackitdown LawnSite Silver Member
    Posts: 2,490

    Huh? Why are you assuming high expenses behind the high prices?

    If the guy that has $4 overhead charges $18 he keeps $14. If he has $4 overhead and charges $45 he keeps $41.

    So to answer your question about "who's the fool?", well one fool is the guy that assumes that the $45 guy has high overhead because he has the ability to charge the higher rate. Another fool is the guy that charges 1/2 what he could be charging for no business reason.

    The best scenario is low overhead, and maximum revenue, which will bring maximum profit. Charging less just because you have low expenses is plainly idiotic.
     
  7. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    i stopped reading this thread after the first post......

    is anyone else tired of the thread beotchin about how cheap the other guy is doing work for?

    i know i am.

    i have better things to do than worry about some company who is offering there services for way less than i am. i'm certainly not thinking about to the extent i can say one way or the other whether they are making a profit or not.

    my prices are what they are. people will either pay them or they won't. i know what i need from each job to make a profit and thats what i pay attention to.

    if people want cheap work at a cheap price, thats what they are gonna get from guys like that. not much us guys who provide quality work can do about it. we can't force people to use us over a cheaper business.

    how many guys on here are always saying they don't want price shoppers anyway. so if thats really true why fuss over there prices and the clients they are getting. you wouldn't want those clients anyway because you know they just hired based off of the price.

    my concern is the clients i have and the one's that do hire me. not what the other companys are doing or charging and who's hiring them.

    by now most people on here know my business are goals are very very different than the rest. i'm not out there looking to build up the business with crews and crews of employees and be THE company to go with. as long as i'm busy enough for myself and making the profit i need i'm not concerned with the others.
     
  8. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284

    BINGO! I've learned that lesson. If people want to work cheap who cares, their type of customer wouldnt hire you anyways!!
     
  9. ajslands

    ajslands LawnSite Silver Member
    Posts: 2,238

    I've convinced cheap people to spen lots of money!
    This may be a tad sterotypical, but I convinced a Canadian to do a sprinkler system for his home and direct bore a quater mile.
    That guy was cheap, till he met me :D
     
  10. Michael J. Donovan

    Michael J. Donovan Head Moderator, Online Communities Staff Member
    Posts: 3,390

    ok guys, maybe we can agree to disagree on this

    obviously there are some people that can and some that can't make a profit at $18.95 per mowing...lots of things to consider when pricing, but either way, because someone is able to, or not able to, it doesn't make them "fools" or "idiots"

    let's move on...thanks
     
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