Avergae mow price in 2007, raising in 2008?

Discussion in 'Lawn Mowing' started by sedge, Nov 7, 2007.

?

What was your charge for a 12,000 sq ft mow, blow & go in 2007?

  1. $25

    15 vote(s)
    17.2%
  2. $30

    18 vote(s)
    20.7%
  3. $35

    30 vote(s)
    34.5%
  4. $40

    24 vote(s)
    27.6%
  1. sedge

    sedge LawnSite Fanatic
    Posts: 33,955

    Peeps out there in mow land, I sit here contemplating the great thought of increasing our rates for next year. But was wondering where most of you are out there?

    I know we all hear "I don't drop my gate for $$$ blah, blah" all the time. This is for a simple mow, blow & go. Not full service or carrying out the trash for the old lady type of mowing. Up to 12,000 sq ft with improvements or about a 1/4 acre or smaller.

    With about 350 clients, we are at $25.74 with the fuel service charge added. Thinking of going to $29.99 next year.

    So where are you guys at? Thanx
     
  2. GreenT

    GreenT LawnSite Fanatic
    Posts: 43,014

    Ouch!

    That's a 16% increase on your rate, be prepared to loose some.

    Also, keep in mind that you are going to get responses from all over and they will not apply to your market. There is a ton of people around me paying $50/month for weekly service and I'm sure that information won't help you at all, right?
     
  3. old oak lawn

    old oak lawn LawnSite Senior Member
    Posts: 710

    are you saying you mow 350 yards a week? how maney people work for you. 6 day work week thats about 58 a day.
     
  4. jbannick18

    jbannick18 LawnSite Senior Member
    Posts: 490

    Why not just make it 30.00 even?
     
  5. IMAGE

    IMAGE LawnSite Bronze Member
    from midwest
    Posts: 1,134

    Even if you loose 50 customers your gross would be the same, with less expenses.

    If you have some say they are leaving based on the price increase you could offer to grandfather them in with no raise this yr.
     
  6. GreenT

    GreenT LawnSite Fanatic
    Posts: 43,014


    Your math is correct, your approach is different from mine. The idea is to grow a business not to loose customers.

    My original point was that the percentage increase was a little steep. I would suggest a 8 to 9% increase to $27.99 and to look at other additional ways to make the operation more efficient at the same time.

    :waving:
     
  7. IMAGE

    IMAGE LawnSite Bronze Member
    from midwest
    Posts: 1,134

    Yeah its not a bad idea. There is deffinately a middle ground between the "1 job for a million bucks", and "a million jobs at 1 dollar each"

    He more then likely will just have to try a price, and see what happens to demand. He obviously keeps track of things, knowing his average price to the penny, and I am sure he knows his expenses also. So after a year of trying whichever new price he goes with he will be able to determine how elastic the demand is with the pricing of his service.

    (I forgot, I was gonna mention to the orginal guy that at $25 it seems like an expense I wouldnt think twice about, but at $30 I may. Stuff around $25 just seems like $20 in my head, I tell my self aww it was only twenty bucks, and spend the cash. But when stuff hits $30, well thats a twenty and a ten spot, and I think about it instead of impulsing.)
     
  8. MOW ED

    MOW ED LawnSite Fanatic
    Posts: 5,028

    Our business is quite different from yours. I am very small change if you are doing 350 lawns a week but in my market I have what I need and I am making money.

    Bottom line answer to your question is "we probably will increase rates next year" I am going to run all the numbers after the season ends. Then I am going to project possible increases in expenses (gas, insurance, materials) and we will see what shakes out.
     
  9. KeystoneLawn&Landscaping

    KeystoneLawn&Landscaping LawnSite Senior Member
    Posts: 774

    I'm thinking 3-5% average
     
  10. sedge

    sedge LawnSite Fanatic
    Posts: 33,955

    If we lose a third, the net income will be the same as if we keep all of them at the current prices. I am sure we will lose some, no doubt, but with the tight labor market here for finding any type of reliable help, I am of the thought less is more.
     

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