Great Article

Discussion in 'Lawn Mowing' started by tiedeman, Jan 6, 2006.

  1. tiedeman

    tiedeman LawnSite Fanatic
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    Posts: 8,745

    I just read a great article in Irrigation & Green Industry and I want to start a debate. Basically the article was about yield management systems that the hotel industry and airlines use for pricing. In a nutshell, they charge more for holidays or destinations to warm places during the winter months.

    Now, would this ever work in the green industry or should you try to use it? Should you have a different price system setup during the year, not necessarily for current customers, but new customers calling up and wanting work? Let the debate begin
     
  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I don't think it would work in terms of maintenance.

    First of all, Supply and Demand is different. A trip to a warm destination in the winter months is a luxury. What is so luxurious about getting your lawned mowed in the summertime (other than it's hot and humid outside) while my client can enjoy the AC in his living room?

    Now, if someone calls out of the blue and wants some landscaping or hardscaping project done at the drop of a hat, by all means, charge accordingly. Obviously you'll be making others wait longer while you take care of this project.
     
  3. tiedeman

    tiedeman LawnSite Fanatic
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    Posts: 8,745

    What about charging more for certain months that you know are busy and charging less for months that you know are not as busy?
     
  4. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Personally, I think that raises a question in the mind of the customer.
     
  5. tiedeman

    tiedeman LawnSite Fanatic
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    Posts: 8,745

    that is what I feel as well.
     
  6. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Funny thing is Troy, if I were the client, I don't know what I would question more...higher rates in-season or lower rates in off.
     
  7. Lux Lawn

    Lux Lawn LawnSite Silver Member
    Posts: 2,267

    Last minute fall clean-ups before snow,yes you can probably get more if that counts.In the spring last year I had a lot of people that needed their yards cleaned before Easter...same thing.
     
  8. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I agree, the one-time, last minute, "gotta have it done right away" gets a premium rate. But that is only one side of the coin here. Can higher than normal rates for in-season activities be charged as well is the other side of the coin.
     
  9. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    yes, I agree with that.

    I will throw out four scenarios for you:

    1. What about a customer that calls in February and wants to schedule a spring time clean up and one that calls in April and wants one done. Would you charge one more than the other?

    2. Or what about someone wants landscaping done in May when its a little bit cooler weather, or someone that wants landscaping done in July when it is hotter weather. Would you charge one more just because of the time of season?

    3. You already have a packed lawn maintenance list, but a new customer really wants you to maintain their property.

    4. A customer wants the regular mowing moved towards a holiday weeekend to make it look nice for the weekend
     
  10. Lux Lawn

    Lux Lawn LawnSite Silver Member
    Posts: 2,267

    Troy,
    My answers.
    1)If they are both regular lawn maintenance customers then No.
    2)No
    3)Yes,because you really don't need it but if you get it at a premium that great.
    4)Maybe,If I have to go to far out of the way on a Fri. then yes.If they never ask for anything extra and pay on time and are a good customer then probably not.
     

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