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increasing app prices for 2014

Discussion in 'Pesticide & Herbicide Application' started by americanlawn, Dec 11, 2013.

  1. eggy

    eggy LawnSite Senior Member
    Posts: 945

    17 dollars per thousand sq ft? I am heading south we average 7 dollars per thousand and considered one of the highest priced around
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  2. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,059


    To me it's not about price...it's about profit margin

    I may b able to charge $50 and have a higher profit margin then someone that charges $60 for the same exact job.

    It comes down to cost and the area you live in
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  3. Ric

    Ric LawnSite Fanatic
    Posts: 11,956


    I believe "The Idea is to make money" is the same thing as Profit margin. I am a one man band and work out of my House. My equipment has been paid for a long time go. My Overhead can't get much cheaper unless I were homeless living on a public park bench. BTW I only work part time and make way better than the national average income.

    Everyone thinks being big means making Money. IMHO a one man band with a part time helper is the most effective method of running a Fert & Squirt business. The Bigger you get, the less control and poorer the quality of your work. Because I have first hand control of my quality, I don't have to advertise. I am not looking for L&O customers, Because those upscale Customers are looking for me.

    Multiply employees, traveling hundreds of miles, charging peanuts is very poor business practice. In fact Service Master just made TG/CL a separate company so they wouldn't continue to drag down Service Master Stock Price/Profit Margin. IMHO anyone following the TG/CL Big Box business model is a Pure Fool. I don't need to drive from Timbuktu to East Jesus to sell my work. Start to finish my Route isn't 20 miles from one end to the other. I don't need to travel hundreds of miles or pay for TV advertisement to make a nice living.

    End Game:: One other consideration in having a smaller one man business is the selling price. I can demand a Higher price per account and have more potential buyers because of the bottom line. I think a lot of people fail to understand the End Game of a business. If I had 3,000 account my potential business buyers would be very limited. From past experience of selling accounts, the Big Boys aren't going to pay top dollar for big routes. My smaller high profit route can demand the highest prices per account and have a multitude of buyers. Not only can I get a Better price per account, But I can sell it faster. Time is money and a quick sale with multiply buyers is a nice position to be in. Sorry but like my first statement ""The Idea is to Make Money"". BUT, Why do it the hard way. The more employees and customers, THE MORE HEADACHES. WHY???? Life is too short.

  4. ShaneW

    ShaneW LawnSite Member
    Posts: 63

    Quote of the Day----->. "I don't need to drive from Timbuktu to East Jesus to sell my work."

    Awesome :)
  5. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,059

    Totally agree with everything you just said!

    I would say that there are many advantages to being bigger though.

    We will blow through the 3000 mark this next spring and I can tell you that our business model has not changed. We operate just as we did with 250 accts. Quality of product and service is what we know and do. As we add guys we train on that and not production numbers. We don't charge a premium but we get paid well to do what we are best at.

    Here is what I love about a larger business:

    1) I am only 37 but I am hardly involved in the day to day operation :) I can't tell you how nice it is to have an awesome team and very little stress.

    2) I am building a very nice business that although isn't for sale is worth a lot

    3) If I get hurt or even die the business will never know I am gone

    4) Buying volume is HUGE!!!!!!! And I mean HUGE!!!!!
  6. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,551

    It would be great to figure out how much is too much - the point of residence to price increases. Maybe we will do an a b split of our active programs and do one at 3 and the other 6% increase and compare renewal rates? Anyone tried this before?
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  7. americanlawn

    americanlawn LawnSite Fanatic
    from midwest
    Posts: 5,859

  8. Service 1st Lawn Care

    Service 1st Lawn Care LawnSite Senior Member
    Posts: 643

    Rodney with your routes getting tighter and tighter, and you indicate your prices for new customers continue to go up. What do you do when a new customer lives next door to your long time customer and your new potential customer knows what his neighbors pay, then you going to charge him the same or you going with the new customer price?
  9. Service 1st Lawn Care

    Service 1st Lawn Care LawnSite Senior Member
    Posts: 643

    I hear ya buddy. Problem is my guys have years' of experience, and they would like to get paid a little more each year. I realize there's a limit, but...

    Larry if your A-Team guys are bringing in 180K a year you better give them boys a raise, or at least an extra six pack a week.
  10. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,059

    So far never been an issue.

    We have very tight routes but the good thing today is families are so busy they barely talk...let alone neighbors.


    If ever questioned I guess we will have to explain to the new customer how we take care or our customers...or give them a neighbor discount

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