Minimum price

Discussion in 'Business Operations' started by Perfect Lawn, Feb 22, 2007.

  1. Perfect Lawn

    Perfect Lawn LawnSite Member
    Posts: 170

    I know it goes by area. BUT, if we could all stick together it would pay off for all of us in the long run. Keeping your Minimum prices the same at least $35.00. Who wants to cut grass for 20 0r even 25 Bucks anymore? Maybe when I was 10. So spread the word guys.:usflag: Be Strong:weightlifter:
     
  2. kc2006

    kc2006 LawnSite Silver Member
    Posts: 2,442

    The United Ohio Mowing Association is sitting at $42 for our minimum. Talks are in the work of upping it to $44.
     
  3. J&R Landscaping

    J&R Landscaping LawnSite Fanatic
    Posts: 5,096

    I wish I could charge a minimum of $40 and still have work. Even on some upper class type properties, I don't think I would be able to get that. To many people lowballing the job still doing it for $15. My minimum is $20 and I only have 2 lawns that I charge on that. My average rate is $25-$32 per lawn.
     
  4. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,084

    The big company out of Dallas offers mowing for a lot less than your $35, better send some of your boys up there to work him over. The prices continue to come down in general for simple mowing....just too many mowers and not enough yards. Everybody with a trailer now has a big riding ZTR machine.
     
  5. cpel2004

    cpel2004 LawnSite Bronze Member
    Posts: 1,416

    If Starbucks can get close to 6 buck for a coffee, then you could get 40 bucks. You might not have a lot of customers at first but keep at it. Find a way, build value for the customers. I have a min price, but that depends on what type of property. If it is a convential property its 40 bucks, however its sold as a monthly amount instead of a unit price. Also get as close to your target price as possible of tthe course of the year deliver good service build the expectation that you raise your pricing yearly, get your foot into the door. Let customers know who you are and how your business is different.
     
  6. cpel2004

    cpel2004 LawnSite Bronze Member
    Posts: 1,416

    its easy to focus on how much money we make per cut. Although its important, the real focus should be on providing and ensuring you have good systems in place. Your systems will tell you how much money you are making and if you should be raising or lowering your price to stay competitive within your market. A mistake that I mad when I started, was focusing too much on price and not my company systems. A good system will ensure that you have an efficient operation, that you are not loosing or wasting money. Your work hard for the money make sure you are not loosing it by wasting time and materials
     
  7. GreenN'Clean

    GreenN'Clean LawnSite Bronze Member
    Posts: 1,512

    The Larger the Company seems like the cheaper the cut. I know of a company here that has a min of $10 but then again they have a ton of Mexicans probably illegal so they still are making money from being so cheap.
     
  8. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    Not disagreeing, but in my case it took time (years) before I could enforce a half-decent minimum (which has been $30). More and more the $35 has been playing with my mind, so I'm pretty sure one day soon, I'll be ready for it.

    In the meantime thou, I'm also looking to get into not only bigger, but better lots (no more crap that's nothing but moss and weeds {or rocks and dirt, or a combo}, a minimum average quality turf is required before I will service a lot in terms of grass cutting)... On that note, I'm ok with a crappy yard the owners want to refurbish, but don't call me in spring with this crap of a yard expecting me to cut it until september when they think they'll be ready for that (should've called me last september, far as I'm concerned). That right there cuts out a SLEW of customers, but I just can't deal with carrying 5-10 extra customers on my schedule whose yards need cutting maybe 7 times the entire season, when I can cherry pick 2-3 better lots to replace all of that. Quality beats quantity financially, last year proved this much to me, so in my case less is better.
    Now, a higher minimum would cut out more of the smallest lots, $30 is still dang good money for those postage stamps, even if few people are willing to pay that much, $35 would help towards getting into larger lots, but then I also have a special going on for acre+ lots for '07 AND I still need a certain amount of customers to survive.

    Considering the balance of the above, I think the below has everything to do with it:
    Established Lco's (5-8 or more years) have all the good customers and they don't let go easy. This leaves the new Lco struggling with whatever they can get, and we have to be able to make do with that, or we can't make it, either.

    It's like that everywhere you go, when you start out anywhere, you start at the bottom and slowly work your way to the top (thou I can also say you never really make it to the very top, it just gets better with time).

    But one thing's for sure: Whatever you do, don't drop your price!
     
  9. bullethead

    bullethead LawnSite Senior Member
    from Texas
    Posts: 273

    Ok, we'll get right on it. You picked one of the lowest barrier to entry industries going - so if you don't like competition, I think you best look elsewhere.
     
  10. Perfect Lawn

    Perfect Lawn LawnSite Member
    Posts: 170

    Yea, whatever dude. we are all here on the site to help each other out. If your not game,:nono: then go. Ok Mr. Lowballer?
     

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