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Discussion in 'Lawn Mowing' started by fireguyva, Aug 26, 2006.

  1. fireguyva

    fireguyva LawnSite Member
    Posts: 33

    I got a call from a lady said she had a kid cutting for her yard not very dependable so she wanted a price from me. I get there and it is about a month growth and 3/4 acre+/-. I said $80 1st cut and 65 each cut after that. No call back. Is this unreasonable?
  2. JTF40

    JTF40 LawnSite Senior Member
    Posts: 875

    Charge $1 per minute - at the least!:usflag:
  3. firefightergw

    firefightergw LawnSite Gold Member
    from Texas
    Posts: 3,340

    I don't know about your market but down here that price is not at all unreasonable.
  4. tacoma200

    tacoma200 LawnSite Fanatic
    Posts: 5,426

    For around here it would be unreasonable. Every market is different.
  5. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    This potential customer answered your question
  6. Evergreenpros

    Evergreenpros LawnSite Bronze Member
    Posts: 1,155

    I gauge my estimates at 50%. Meaning, if I pick up more than 50% (all other things constant) then I'm probably not charging enough. If I pick up less than 50%, then I'm charging too much. If I pick up 70-80% then I'm WAY undercharging.

    The question is how price sensitive your market is. If you look at it graphically with just revenue and price: When you increase price you are undercharging if your revenue goes up. You would continue to raise prices until there was no increase in revenue. Remember you have to subtract lost customers but you have to give it a while for it to work itself out because because of price/value relationship, it is wholly possible to pick up MORE customers with a higher price.

    Anyway, keep tracking it and continue to raise prices until revenue maxes for the same amount of work.
  7. Idealtim

    Idealtim LawnSite Senior Member
    Posts: 939

    I agree with mac. With the amout of competition around me, good luck with gaining accounts.
  8. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    I bid on my first job Friday where I moved to recently. It wasn't too bad on pricing and it is a one time only job. Fella saw me mowing my vacant lot and came over to inquire about cutting his overgrown lot. It's a 2.8 acre lot with about 1+/- acre of it overgrown. I told him $200 to do his entire lawn and he kind of shuffled his feet. I then said $100 to cut just the tall grass and he said fine.

    There is a threshold of pricing pain with customers and you just need to find it to be a successful bidder. You also need to determine whether or not you really want that particular job and if you do then you may have to lower your pricing a little. Don't worry about what others are charging, figure out what you need to charge to make a profit and bid from there.

    I know what it costs me to operate per hour so it's not too hard for me to know how much I have to charge to make a profit. Profit for me is anything about my hourly costs (about $19 an hour) plus whatever I would pay someone to do what I do out in the field. In the case of being a crewleader that would be $15 an hour. So anything I bid above $34 an hour is pure profit (less taxes). $60 an hour is real nice but I've had jobs that paid way less and some that paid way more. My average comes out to around $50 an hour.

    Now if you have a bigger legally operated company your costs per hour would be higher due to employee costs such as workers comp, insurance, employer SSI contributions, employees being harder on equipment etc...
  9. yardmanlee

    yardmanlee LawnSite Senior Member
    Posts: 898

    3/4 acre I probably would have went $45 to $50 and tried to gain a couple of others in the neighborhood !!! let you're work be your advertising !!! if she is happy she will tell others !!!!!
  10. rb_in_va

    rb_in_va LawnSite Member
    from VA
    Posts: 246

    It sounds reasonable to me. If you have a 3/4 lot to mow you better have the means to cut it, or pay the price to have someone else do it! What city was this in foreguy? I live in Hampton.

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