Customer Cost Resistance Point

Discussion in 'Lawn Mowing' started by Hawkeye5, Jul 23, 2004.

  1. Hawkeye5

    Hawkeye5 LawnSite Senior Member
    Posts: 295

    Has anyone else noticed a resistance to pricing over a certain amount? It seems in my area that price resistance seems to start around $50 per cut or $200 per month. I have lost some larger residentials to low-ballers at this level. I am considering changing my focus to residentials less than 30,000 sq. ft. as the larger acre and acre + residentials seem able to find an LCO for less than I need to cover labor and overhead. The smaller 10 to 30K sq. ft. properties tend to go for $30 to $45 per cut and don't seem to be subject to as much price cutting.
  2. venecular

    venecular LawnSite Member
    from Atlanta
    Posts: 122

    I really don't think it is set to those size yards. I have a big turn around due to teenagers coming in and passing out flyers stating one set price for any size yards.
  3. Littleriver1

    Littleriver1 LawnSite Senior Member
    Posts: 811

    I don't think you have maxed out your price. There is plenty of room. It helps if there is a lot of new homes going up. Lawn Service is getting to be like cable TV, and high speed internet. Everyone wants it and working it in to there budget. I see in the future, people giving up the SUV's so they can keep the lawn service. LOL it could happen
  4. BSDeality

    BSDeality LawnSite Silver Member
    Posts: 2,850

    i've also noticed there is resistance to >$50/week for anything around 1 acre. if its 2-3 acres its hard to get them over $75. I like the 25-30K sq ft'ers myself. $35-40/cut and in and out in 25 minutes solo with my new Z
  5. NNJLandman

    NNJLandman LawnSite Bronze Member
    Posts: 1,306

    It seems to be the same problem in any area dude, there is a guy in my town who has been lowballing any job, some older guy, his work looks like **** but he charges like $20-$25 a lawn, which is about the lowest price in this area. Most companies start at $35 a cut.

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    For some reason around here, people will pay $30-$40 for a postage stamp sized lawn, but the acre plus jobs they don't want to go over $50. One woman told me (after an estimate of $80 per cut) that I "will never get a foothold in this neighborhood. The going rate is $50". Hope she holds onto my estimate for when all the lowballers go out of business.
  7. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    o, for sure. they will pay 25-30 for 2, 3, 4 k props. now quote a quarter acre at $45, they jump back. this is why i've said time and time again, i'll take em all in the 2-8 k range, you make more $$ that way
  8. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    It's pretty much that way here. $25 seems to be the real point of resistance. With all the $20 door hangers I've seen, I got a feeling that number is headed south too.

    DFW Area Landscaper
  9. brucec32

    brucec32 LawnSite Platinum Member
    Posts: 4,403

    I don't know exactly where the price resistance starts and ends, but it's definitely there. No problem at all in Atlanta getting $30 to mow a small lawn you can be in and out of in 25 minutes, maybe less. Closer to $40 you start having to deal with more resistance.

    But the big problem is that a growing number of Americans have been trained to expect something for nothing, and as fewer and fewer Americans have actually performed hard work, they increasingly don't understand the value of it. Anyone who has cut down trees with a chainsaw knows how exhausting it can be. But if your life is lived in air conditioned comfort 100% of the time, where your heartrate rarely exceeds resting, you don't understand what real value you're getting for your money. Because you have no idea what goes into doing the job.
  10. QualityLawnCare4u

    QualityLawnCare4u LawnSite Gold Member
    Posts: 3,758

    Bruce32, you are absolutly right on this one. I done a 4 hour after strom clean up last Sat, using chain saw and dragging large trees up hill. The lady works in a AC Govt office all day and liked to shat when I charged her 200 bucks which I have not gotten yet. I was so exhausted when I got thru hardly had enough strenght to drive home and sleep for 2 hours, my blood pressure was 169/101 when I got home from this job and took it. I WILL get this money if I have to take her to court or whatever I need, that will be my last cleanup job like this ever. As far as the resistance in my area its around 30-35 no matter the yard size. Thats why I go after all small ones now. Picked up 2 $25 yards last week that I can do in about 25 minutes. much rather have these than the 2 hour $40 yards that I have now. I changed my policy this year that I would not do any yard for less than $35, this was costing me badly. I now have a few $20 yards that are so easy I wished I had a 100 of them.

    Qualtiy Lawn Care

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