It's a new year time to raise prices on those first accounts!

Discussion in 'Lawn Mowing' started by scagman, Feb 5, 2002.

  1. scagman

    scagman LawnSite Senior Member
    Posts: 270

    Ive been in this for a year, I think when everyone starts out mowing a couple accounts for a real cheap price. Now I have to either drop or raise prices on these few accounts. Their great customers and pay on time (probably because im so cheap), but im not making much profit. Heres the numbers #1 account $15 lawn that should be at least $25 (it was my first account) #2 account an office $35 per cut, needs to be $40. #3 I do there lawn and their flowerbeds (beds are once a month) for $30 a cut flowerbeds included. I want to do the lawn for $30 and the beds once a month for $25. What should I say mowing starts soon. I know almost everyone has to do do this, so what do you say?
     
  2. scagman

    scagman LawnSite Senior Member
    Posts: 270

    I think when everyone starts out, they mow a couple accounts for real cheap. Made a mistake up there.
     
  3. Raise em. If they like your work then they will stay.

    If they think it's out of reason they will complain.

    Explain to them what's going on and most will understand.
     
  4. Wait to get the acceptance/refusal back on each one before raising another.
    Because your attitude will change with each one.

    Dave
     
  5. LAWNS AND MOWER

    LAWNS AND MOWER LawnSite Bronze Member
    Posts: 1,129

    I've been in business for 15 years and have a couple "grandfather" accounts. My min. is $30 and some of my older accts are at $20. I know what you mean about trying to raise prices on these nice, timely paying people. I feel these people need me more than I need them. Just price your new accts higher to offset the older underpriced yards. I raise prices on 1/2 of my accts one year and then raise the other 1/2 the next year.

    LAWNS AND MOWER
     
  6. Twotoros

    Twotoros LawnSite Senior Member
    Posts: 494

    Future prices are based on that first bid. If we bid too low it is hard to adjust to the proper price. I, more often than not, lose when I have bid too low and adjust accordingly. Is it better to just do it and make less on a few lawns or get dropped?
    It all depends on the customer and how you explain it to them. If they understand what being in business is all about they may agree to the increase. If not they will just think you are greedy. If they are the latter offer a cutback in service like less trimming , no bagging etc. Unless you prefer to do top notch work only.
    I know my first year in business(1986) was a pricing disaster. My first thatch job I paid 20 bucks to do and took all day!!!! I got smart real quick.
     

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