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Are you competitve...do you want to be?

Discussion in 'Business Operations' started by xpnd, May 9, 2003.

  1. Edgewater

    Edgewater LawnSite Senior Member
    Posts: 457

    Randy Scott you are 110% right.

    I had exactly that problem this spring. I had jobs that I needed to increase by 50% and then add our lovely:rolleyes: 15% tax on top.

    I spent most of the spring looking for new customers. I now bing in 20% more revenue per month with 65 accounts than I did last year with 75%.


    It's not so bad if you bid a one time job a little low, but if you bid a hedge a $150 one year and they call you back the year after and you say $300, they aint gonna pay.

    Just my experience

    Adam
     
  2. Andrew S

    Andrew S LawnSite Member
    Posts: 150

    to be 50% out on your pricing is huge,no wonder people baulk at such an increase in one go

    A more sensible approach is to price somewhere close to the mark and maintain regular small price increases every year.

    I think that this is an aspect of the business that lcos find confronting there are many reasons not to increase prices like they are nice people, I might lose the job etc but if you don't increase prices you will either be less profitable or have to take on more lower priced work to keep your turnover up and make ends meet
     

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