Lowballing or not?

Discussion in 'Lawn Mowing' started by Varsity L&G, Oct 16, 2005.

  1. Varsity L&G

    Varsity L&G LawnSite Senior Member
    Posts: 418

    In my area there are hundreds of neighborhoods like this below.

    Would it be undercutting to put the price on the flier of 26 or 30$ per cut to just this type neighborhoods to get a tight route?

    These yards for the most part are 10,000sq or less, flat, and most don't have fence's.

    Being a solo op I think I could make the most on these style small quick yards with a 6 cut min, lots of traffic in the area, and nice clean equip.

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  2. Varsity L&G

    Varsity L&G LawnSite Senior Member
    Posts: 418

  3. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    If you did 2 an hour yourself then your at the magic rate of $60/hr.
     
  4. hoskm01

    hoskm01 LawnSite Fanatic
    Posts: 5,690

    County assessor maps are pretty common. Most have satellite images available. I often use info from the assessor to find out some basic info on the owner of the house, total lot size, house value etc... sometimes useful, sometimes not. Recently did a mailer on a neighborhood I wanted to target. Go in, select the lots you want, and it creates a mailing list for you, free of charge, public info. Try google Earth as well, free download, pretty awesome mapping and imagery. Might give you a leg up on a potential customer before you drive out to the lot.
     
  5. hoskm01

    hoskm01 LawnSite Fanatic
    Posts: 5,690

  6. premierlawncare

    premierlawncare LawnSite Member
    Posts: 91

    I just bought my first LCO of 100 accounts. I thought I paid too much, but I just bought clip and figured out I am making $70 to $100 an hour cutting with a 2man crew or $35 to $50 per man. The rates that I inherited are low in my opinion. But since the business is 10 + years old it is very tight. And this is where the profit comes in. My average cut is $26 including trimming of bushes. (not hedges requiring a ladder)

    I think a property should be bid based on individual costs in running a LCO. Some have high overhead some have low. Some have tight routes that save time. Time is money.

    So I think you are NOT low balling if that is profitable for you.

    Low balling, in my opinion is giving a low price just to BUY the account and then later trying to raise up the price.

    Car sales do it all the time on the phone to get you in the door , then they bump you up to the real price.

    Just my thoughts.
     
  7. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    sounds reasonable, but i would not include bush trimmiing in a bid like this, that is an upsell item and mre profitable them lawn maintenance..... should be seperate i my opinion
     
  8. premierlawncare

    premierlawncare LawnSite Member
    Posts: 91

    Thats how I am giving estimates for new customers. Cut, edge, weed wack, blow one price. Bush trimming package extra, weed control package extra, etc.

    So far 3 I did 3 estimates last week and got zero. I either over bid or they are cheap. I think they are cheap and want high quality service for the lowest price.

    My highest bid was $30 a cut $25 month for bushes, $25 a month for weed control. He was a PITA TOO and works from home so he will always be there when I cut asking for stuff and complaining.

    $140 a month on a 12,000 sq ft. (aprox.) property is not out of line in my opinion.
     

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