Are we hurting our own industry?

Discussion in 'Starting a Lawn Care Business' started by Sunstate Lawn, Mar 26, 2008.

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Should we be so open about pricing?

  1. Yes

    11 vote(s)
    36.7%
  2. No

    12 vote(s)
    40.0%
  3. Who cares? I don't help people who live near me.

    7 vote(s)
    23.3%
  1. Sunstate Lawn

    Sunstate Lawn LawnSite Member
    Posts: 143

    I am a fairly new LCO. I am a little disturbed by how many new LCO's will come right out and ask how much we are charging. Am I the only one? I had to do the work of figuring out how much to charge, just like many of you. Are we hurting ourselves by being so helpful?

    It's one thing to ask about time, materials, equipment, etc.. but asking about a part of the financial infrastructure of our companies seems like it crosses a line.
     
  2. KGR landscapeing

    KGR landscapeing LawnSite Bronze Member
    Posts: 1,544

    well i guess yes and no. its the person own fault if they cant figure out what it cost them to run there own ocmpany. but if there just trying to figure out what there market will hold then its a little diffrent. some people ask so they can under bid and get work. so ask so they can figure out when its just better to say home and play with the kids during the summer.
     
  3. THRIFTY

    THRIFTY LawnSite Member
    from (913)
    Posts: 208

    It takes alot more than just reading up on lawnsite to be successful in this business, so to say we are hurting our industry by collaborating would be an ill statement. Alot of people on this site reveal alot of personal information of thier business, pricing, annual income, etc. I just choose not to participate!
     
  4. Paulup

    Paulup LawnSite Senior Member
    Posts: 270

    Yes and no. I'm new to the whole thing, currently only cutting 2 lawns and since its family I am already under charging for my services. I think it is better for the majority to share prices so that new people don't roll in and undercut. Personally, if i were to ditch my old lawn care service for a better price, and that better price went under, i might be too proud to call my old guy back and admit i was an idiot for switching. I'm sure many of everyone's current customers would feel the same way.

    The down side is in very high traffic areas, like south and central florida where LCOs are coming out of the woodwork. There are so many people down there that are not doing it legit(insurance/license) and work dirt cheap, especially the illegal immigrants. Sharing your price there could get you undercut by 5 bucks, and a client could switch. My sister lived there(Naples) for a year, and had 5 different illegals try to undercut her lawn service, which was already 20 bucks a week.
     
  5. GreenN'Clean

    GreenN'Clean LawnSite Bronze Member
    Posts: 1,512

    The ones who hired illegals hurt the industry... Thats what caused some companies to give a better price and still make a profit then the ones that don't hire them.... You don't see this type of under cutting or throat slashing in other industries like plumbing or others because they all take pride in the profession and they all keep there prices in order and don't under cut like what goes on in the lawn industry.... People look up to plumbers,construction of other types of businesses or trade because they seem to hold a higher standard in those fields and most have to go to school to learn those trades, when anyone can get a mower and cut grass.... People don't mind to pay a plumber $200 bucks an hour for there services but they hate like hell to pay $30 an hour to a lawn care company.
     
  6. Valk

    Valk LawnSite Silver Member
    Posts: 2,711

    If you're referring to other LCO's asking you your price in person, as opposed to this website microcosm...then it's still a judgement call...lol! If I don't know them......I just suggest they ask my customer in person.
     
  7. Lawn-Sharks

    Lawn-Sharks LawnSite Senior Member
    Posts: 912

    I dont think letting other LCO's knowing what you charge is hurting the industry that much because some of us want to be close to each other on pricing so that if were all pricing in the same ball park so then what it going to boil down to is quality & reputation. So now lets talk about the "lowballers" those are the people who take the your pricing and use it against other LCO's to get the work but also you have to keep in mind that all of us were lowballers at some point in the begining because no one knows how much to charge from the start sure you can say write down all your cost & overhead then figure out how much profit then charge that..Well thats not always true theirs LCO's out their that have almost no overhead so they can charge $20 -$25hr and make a good profit so i dont mind sharing my pricing with other LCO's i would rather everyone be close in price the to have a bunch of lowballers making it harder for all of us to make a fair profit. And i'll share my pricing with other LCO's in my area it just wont be my exact pricing

    I charge $35hr to $50hr depending on the service the customer wants.:cool2:
     
  8. KGR landscapeing

    KGR landscapeing LawnSite Bronze Member
    Posts: 1,544

    see ur market must kill eachother because were a buck a min here or better
     

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