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Mowing Pricing - "Odd Numbers" and Price Increases

Discussion in 'Business Operations' started by OakNut, Oct 7, 2012.

  1. Darryl G

    Darryl G LawnSite Fanatic
    Posts: 8,033

    My initial prices tend to be increments of $5 but increases could be anything, rounded to the nearest 50 cents. So a $45 account might go to $47.50.
     
  2. gcbailey

    gcbailey LawnSite Silver Member
    from WV
    Posts: 2,552

    I'm sorda the same way... I've got about a dozen "loyals" that have been with me since the first season. I think I've only raised the price on one of them, and that is because they ended up getting a vacant adjacent lot.
     
  3. TCW

    TCW LawnSite Member
    Posts: 33


    Glad to help. We have a mixture of both residential but started out all commercial, so invoicing was the only way to get paid! Since we already had the system in place it was a no brainer to continue that route.

    I'm learning a lot from you guys too, since residential is a different beast from commercial. I hadn't entertained the thought that some customers may be more comfortable weekly because of the higher "price" on the check...thanks!
     
  4. Jelp2

    Jelp2 LawnSite Member
    Posts: 3

    Sorry, I mean I all my lawns are say $26, $32, one small one is $18. I have them figured to the amount of time we will be there and these are the numbers that just work out for me. I dont round them off to the nearest $5 mark. I dont feel right about rounding up and I sure dont feel good rounding down! :)
     
  5. Darryl G

    Darryl G LawnSite Fanatic
    Posts: 8,033

    Well with prices that low I can see not rounding to the nearest $5. Most of my lawns are $50 or more.
     
  6. Jelp2

    Jelp2 LawnSite Member
    Posts: 3

    All my accounts have yards under 10,000 sqft and that includes the house and any other structures. Not 10,000sqft of lawn. They're all flat and no obstructions. My smallest lawn, we're in and out under 10min. I couldn't justify charging over $20. We do both houses on either side of them, so we're not driving there to do just the one lawn.
    A good sized corner lot in the area may command $40, but with the amount of companies in the area, it's very competitive. There are properties I've bid on in the mid to upper 30's, but didn't get them. One house was one the hook for $32 and then asked if it would be the same for bi-weekly. I told him it would be a couple dollars more and didn't hear back from him. Lawn cutting isn't our primary department. We mainly do designs, landscape and hardscape,pond etc. We've just recently started doing lawns, but for me I use it more as an stepping stone to reach more clients. I make a small profit from them, definitely don't lose money, but the smaller profit on lawn cutting is worth getting the patios, plant designs etc.
     
  7. OakNut

    OakNut LawnSite Platinum Member
    Posts: 4,051

    This is probably the direction I'm headed except I won't do "50 cents" unless I switch to billing exclusively.
     
  8. Snyder's Lawn Inc

    Snyder's Lawn Inc LawnSite Platinum Member
    Posts: 4,541

    My cheapest ones are $18.00 but have 12 Duplexes and each side pays 18.00 They was 15 but raise them 3 dollars each
    each side is 8k sq ft

    I win alot jobs by 2-3 dollars
    I tell customer I'll match anybodies reasonable price or beat it by 10% on jobs I really want I like to group jobs where I can park and mow cpl hours
     
  9. knox gsl

    knox gsl LawnSite Platinum Member
    Posts: 4,719

    I have gone in this direction and seems to work fine. All prices end with 2, 5, 8 or 0. A little more complicated but also more money. $48 sounds better to a customer than $50 but is better than going back to $45 for me.
    Posted via Mobile Device
     
  10. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    I price each lawn by the amount it should be. That means if it's 31, 37, 53, 72 dollars that is what it is. If I need to raise the price I will raise it by the amount my costs have gone up.

    Thing is I don't want to handle coins. So when I give the price I always round it to the nearest dollar. Say a $30 lawn is $32.59 with sales tax. I'll tell the customer that pays me cash the price plus tax is $32.59 just give me $32 even and I'll make up the .59c. Worth it to not handle the coins and most likely the price came out to $29.** and I just rounded up to $30 even any way.

    Now my commercials pay me by check so that $30 + tax will be charged $32.59.
     
    Last edited: Oct 7, 2012

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