I nailed down my first two accounts, did I do the right thing??

Discussion in 'Lawn Mowing' started by Jon99, Mar 2, 2003.

  1. Jon99

    Jon99 LawnSite Senior Member
    Posts: 375

    I am new to this, but after spending about $600 on print ads and passing out a few hundred flyers a few days ago, I got two calls and I landed the accounts...But did I do the right thing???

    Job #1- Residential in new subdivision of $150-200K houses, small yard with very little trimming.. $23 per cut, even with bagging it, I should be in and out within 20-25 minutes... Really wanted this to get foot into new subdivision...

    Job #2- Common property for a subdivision, mowing a 2 acre park and a small entry way... I figured 90 minutes, agreed on a price of $50..Went lower than I wanted with hopes of landing accounts with the subdivision, which is 80 homes sitting on two acre lots..

    Is going a bit low with hopes of getting other accounts the right thing for a new guy to do????
     
  2. FrankenScagMachines

    FrankenScagMachines LawnSite Platinum Member
    from IN
    Posts: 4,739

    It might be OK just so long as you still cover your costs and then some profit. Job A sounds ok but job B sounds like it should be $90.
    Like I said you might be able to get away with it but be very careful doing this.
     
  3. NC Big Daddy

    NC Big Daddy LawnSite Senior Member
    Posts: 267

    And people wonder why LCO's go out of business so fast. You're Low Very Low. $23 per lawn and you're going to bag it two? I'll assume you didn't put them on contract either?

    Good Luck
     
  4. Lawn Specialties

    Lawn Specialties LawnSite Member
    Posts: 207

    I have to agree the price on the two acres sounds pretty low but it may end up being one of those mistakes you learn from.It takes time and experiance to get the feel for quoting prices.Don't try to price low to get jobs to the point you work for free.I once quoted a clean up job and ended up making 3 bucks an hour and got poison ivy to boot.
     
  5. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    You are VERY VERY low. Our cheapest cuts are $30. and they take us anywhere from 7-10 minutes to complete. Also your larger account I would not have gone lower then $50. an hour if you are a solo operation. Even that is low. Most companies would be able to have gotten between $90.00 - $120.00 for that account.
     
  6. Dude! 2 acres for $50!!! Come work for me. We'll get you all the work you can handle, hehe.

    Seriously, you're going to be kicking yourself for that one. How do you expect to get good referals? You're just going to get more work like that. That's about $100 job around here. How are you going to justify charging new referals double? Tell that guy you are new (which he already knows, hehe) and that you talked to me (your business manager), and you're going to do it 2-3 times at $50. Then if you can't get it done in less than an hour, you're going to have to renegoiate.

    I bet it takes well over 2 hours a shot. Its early, and that customer is willing to hold out for a while, looking for a GREAT deal. And because its early, you should be willing to hold out for more. I understand wanting to get a few solid deals to get going, but you're really hurting yourself with that price.

    Not seeing the smaller lots, I'd shoot for $35-$40. Going a "bit" low is one thing, but 1/2 price just makes you look like you don't know what your'e doing. Unless you're desperate, then ya gotta do what 'cha gotta do.
     
  7. LP

    LP LawnSite Member
    Posts: 97

    I did the exact same thing when I first started, just make sure even if youre not making what you should be that you dont sacrifice quality service, you're name is everything!
     
  8. coonman

    coonman LawnSite Senior Member
    Posts: 682

    We charge 50 per acre here. You will hate having to bag that lawn for 23 dollars. Try to talk them into mulching. Bagging makes mowing miserable to me. If you have to bag charge them 5-10 bucks more.
     
  9. jslawncare

    jslawncare LawnSite Member
    Posts: 89

    Probably get flamed for this, but your price seems ok. Guys in my area are laying it down at $20 bucks a lawn when they come through with a crew of 3 or 4 and do the lawn in 5 minutes or less. I think you should be ok...but thats just me...and again..I have my flame suit on

    I would do $23 w/o bag. I did this guys yard for $20 bucks and I had to bag it. Took me an hr, and it was assloads of work, bagging it really isnt necessary if you come often and mulch it
     
  10. nu83

    nu83 LawnSite Member
    from omaha
    Posts: 238

    It wont kill you, and if it does help you land some other accounts it could work out. How are you planning on getting other accounts through the park though? I would have a sign made up and put it on the curb with your company name and number and leave it their all the time. They shouldn't care, as they are saving 40 bucks a week because of your low bid.
     

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