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Michigan LCO's

Discussion in 'Network: Central' started by tiedeman, Sep 4, 2003.

  1. RedWingsDet

    RedWingsDet LawnSite Gold Member
    from Detroit
    Posts: 3,556

    I agree with the above posts, but also, for me, I can get some jobs done quicker with my WB than rider.
  2. Jason Pallas

    Jason Pallas LawnSite Bronze Member
    Posts: 1,325

    Yeah, unfortunately you don't set your prices, the customers and the market do. With the economy the way it is, I'd hate to be getting into this business right now.
    It's so bad that I went to personally collect on some accounts in GP that were late (pretty good customers) - only to find out that they just up and moved, walked away from their home and let the bank foreclose on it. That's about the fourth time in the last 5 months that this has happened to us. People are just walking away from homes or doing foritures of deeds in lieu of foreclosure. This economy is BAD and it ain't gettin better any time soon.
    Hang on - cuz our costs are about ready to go sky high (with increased insurance and gas, etc....) and the value of our services won't do anything but decrease. This should be a really great year in Michigan ......
  3. bigjeeping

    bigjeeping LawnSite Senior Member
    Posts: 903

    I just mailed out 110 auto renew letters to resis.... with an average 8% price increase from last year. Hopefully the economy here in a2 isn't as bad as you guys to the east.
  4. Eclipse

    Eclipse LawnSite Bronze Member
    Posts: 1,149

    I wish I could get away with that.
  5. bigjeeping

    bigjeeping LawnSite Senior Member
    Posts: 903

    Increases worked out fine last season... this year I've got my fingers crossed tho :dizzy:
  6. stuffdeer

    stuffdeer LawnSite Bronze Member
    Posts: 1,537

    Alex....I will not be able to make lunch, but could do dinner or something after the show, as I cannot take off of school. I will most likely be going Monday. IM me on AIM and we can talk about this.
  7. Leisure Time Lawn Care

    Leisure Time Lawn Care LawnSite Member
    Posts: 145

    Hello, I am getting back into the business after a 11 year vacation and was looking at getting 20 or 30 customers, and was wondering what is a good time to hand out flyers in southern michigan. Any help would be great

  8. Mower For Less

    Mower For Less LawnSite Senior Member
    Posts: 823

    I am a little bit miffed that so many are in agreement with this line of thought on here. I understand to a point where the markets will effect price, but to go so far as to say you cannot deviate from the market rate, or must do it for market rate or less to earn business, I disagree with.

    When I give a price, my FIRST consideration is what will I have to charge to make a profit on this job? I will not bid below my cost REGARDLESS of the market rate. If I can do it for market rate or less and make a profit, its a deal.

    For example, say I would LIKE to charge $40 to cut a house in 15 minutes. The MARKET average however charges around $18-20 for this service, so obviously the market will keep me from charging $40. My personal average is closer to $22 for this same house, however. Thats on average at least 10% over the going market rate. And thats not taking into account that other people will bid on those same houses for $15. That really screws up the market rate, but does not make me lower my price.

    I guess what I am getting at is that there are many factors that go into your final price, and market rate is only one of the many factors, not the only factor. Anybody who is setting there prices where they are because "thats what the other guy charged" is headed for certain doom.

    In Conclusion: Know your costs before you bid, and only use market rate as a guideline to see if you are remaining competitive or not.

  9. Mower For Less

    Mower For Less LawnSite Senior Member
    Posts: 823

    How many Ford buyout recipients do you suppose are going to be cutting lawns this year? This should be a really interesting year.

  10. bigjeeping

    bigjeeping LawnSite Senior Member
    Posts: 903

    It's all economics.. im a business major, and believe me the market always decides the price. We exsist in a free enterprise/capitalist economy. You can bid whatever the heck you want!

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