Cheap customers!!!

Discussion in 'Lawn Mowing' started by nobagger, Feb 22, 2005.

  1. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    How do you guys (in the business for awhile) deal with cheap a** customers?
    Ive raised my prices this year only by $3.00-$5.00 and lost a cople of accounts. And if this keeps up I'll be screwed this season. thanks
  2. QualityLawnCare4u

    QualityLawnCare4u LawnSite Gold Member
    Posts: 3,758

    Nobagger, are you sure you dont live in south Georgia? I went up 3-5 last year also and lost 2 and had several complaints. Why is in when you work for someone you get a raise but in our biz the price you give is not suppose to ever go up if you do the yard for 20 years, I cant understand peoples thinking. Dont hesitate to go up if you need to. I made a decision if I have to lose every customer then I will become a wally world door greeter. Dang it, We aint doint this for free and our equipment goes up every year, not to mention blades, trimmer line, GAS, and car repair, if they cant understand that then thats just tough.
  3. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,206

    I have been in this business for over 25 years and the prices on mowing in our area has only gone up about $7 in that time. The average is now around $30 per mow. This work is like farming the price of corn hasn't gone up much in the last 50 years??
  4. lsylvain

    lsylvain LawnSite Senior Member
    Posts: 777

    Simple Supply and Demand guys. As price goes up demand goes down. Always think when you are figuring prices not only what you want/need to make, but also think, at my rates would I pay someone to cut my grass or would I do it myself?
  5. Indydirtfarmer

    Indydirtfarmer LawnSite Member
    Posts: 48

    After being in business for myself for the better part of 30 years, I've finally got over loosing a customer or two when I adjust my prices. :dizzy: Plain and simple, you'll loose a few every now and then, price change or not. They're customers, not tattoo's. You don't keep 'em forever once you get 'em. ;)

    Remember when you first started out? You had to go find ALL of your business. Now you have an established customer base... BUT... You still need to hunt for MORE business.

    Chances are, that customer you lost will soon be paying just as much, if not MORE than your "increased price" for someone elses services. :dizzy:

    Just move on.... :D
  6. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    You have to also remember that depending on what you are charging that a $3.00-$5.00 increase could be a 5%-20% or higher increase at one time and has the Cost of Living index gone up that much? As someone else said if you are charging someone say $30 for the service of mow,blow, trim and go only, does that cost for you to do each of the services for that one customer(s) "really" increase by 20%, esp if you are a solo op?

    Also unless I made a msitake in pricing on the original quote I only go up as the market justifies it. In other words it might be every couple of years or it might be five years, who knows. I adjust as is "really" needed. Even with the cost of gas today I still only adjusted one account this year because with gas prices in the up and down range of $1.50-$1.95 it still isn't really effecting me yet on per yard basis. But to go up just to try an increase incoming revenues alone is not a good business move.
  7. impactlandscaping

    impactlandscaping LawnSite Silver Member
    Posts: 2,332

    Your price increase adds to your bottom line, and weeds out the undesireable accounts. This leaves you with more money and more time to get more quality acounts.EXAMPLE:

    Joe Schmo does 20 mow and go's a week at $ 25.00 each. That's $500.00 gross per week. He decides he needs to raise his prices in 2005. He raises everyone to $ 30.00 per cut. Well, 2 customers don't like it , and drop his service. Joe is saddened by their loss, until he realizes he now has less customers, and more money! 18 customers at $ 30.00 per week is now grossing $ 540.00, that's an extra $ 160.00 per month. He now has more space in his mowing schedule to add 2 more 30.00 accounts, and enough extra money to get that new mower he's been wanting. See where this is going?Picture this on the larger scale ... Don't sweat loosing a few over price...start worrying when you lose them to quality issues.
  8. impactlandscaping

    impactlandscaping LawnSite Silver Member
    Posts: 2,332

  9. Mo Green

    Mo Green LawnSite Bronze Member
    Posts: 1,487

  10. impactlandscaping

    impactlandscaping LawnSite Silver Member
    Posts: 2,332

    I was going thru email notices and couldn't find this thread. I deleted it before reading responses, so when I found it, I bumped it for whatever...I dunno..I'm bored and sick of this :D

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