Need advice correcting a newbie mistake..

Discussion in 'Starting a Lawn Care Business' started by Sweet Tater, Dec 3, 2007.

  1. Sweet Tater

    Sweet Tater LawnSite Silver Member
    Posts: 2,123

    one of my very first accounts I qouted, I had not yet gotton the info or experience to correctly price. Hence I drastically under priced this lawn and now getting set for my second year I need to correct this.
    Do you think a $15 increase is to much at one time?
    I really need to move this lawn from $45 to at least $60.
     
  2. corey4671

    corey4671 LawnSite Silver Member
    Posts: 2,931

    how long is the job taking you to do? that is a 30% increase. how quick was the customer to agree to the $45 price?:laugh:
     
  3. Tadams

    Tadams LawnSite Senior Member
    Posts: 788

    $15 is a big price increase! You could raise their price by $5 pretty easy but you might just have to talk to them and tell them that you under quoted their price and you will need to raise them up to $60. Good luck.
     
  4. willjones4

    willjones4 LawnSite Member
    Posts: 123

    You screwed up now you gotta eat it. I think Id rather have the $45 than $0.
    Live and learn young Skywalker...You could try to talk to them but just think if your mechanic came and told you, "Hey I know I quoted you $45 to fix it but it was a real pain so I think its worth $60"
     
  5. humble1

    humble1 LawnSite Silver Member
    from MA
    Posts: 2,499

    can you make it up in other services. The other thing is are you still under priced at the 60 maybe its really a 80 cut for me and if you jump to what ou need to make they may still take it.
     
  6. hackitdown

    hackitdown LawnSite Silver Member
    Posts: 2,515

    If it is a $60 lawn, it is a $60 lawn. Call them up, tell them you underpriced it and need to adjust. Tell them that a fair price is $60. Tell that that you understand that it is a big increase, and you understand if they need to shop around (because they will). Ask them to just give you the same consideration as the next guy.

    If you lose it, you lose it. You will need to face that risk if you know the lawn is a $60 lawn. If you need to reduce the risk, go $55. And $50 is even less of a risk.

    Step up and ask for the money!
     
  7. Sweet Tater

    Sweet Tater LawnSite Silver Member
    Posts: 2,123

    "how long is the job taking you to do? that is a 30% increase. how quick was the customer to agree to the $45 price"
    Its just a bit over an acre, usualy takes me 1 hr
    WillJones4, this is for a price increase next year, but I understand what you are saying. If he balks and says no, I agree 45 is better than 0
    I believe it should actually be $65 but even I would fire me for a $20 jump.
    It seems the general consensus is that is a big jump. I will talk to him and explain that I underpriced him last year and need to bring it up. If he balks, at least I am getting the 45, I'll settle for that. shhh don't tell him tho
     
  8. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    I had a customer that I bid $50 per mow. After doing the place for a three weeks I knew I had underpriced my service. So I told them that I had made a mistake and would have to charge $60 per cut. Since I didn't have a contract I could make the change. The customer didn't bat an eye. Remember to never negotiate on price alone. If they want to pay less then provide less, like no trimming or edging.
     
  9. NC Greenscaper

    NC Greenscaper LawnSite Senior Member
    Posts: 446

    Bad move. If you fill that 1 hour slot with a job paying 45 and pass two (30 min) lawns for 35 each. Then he is costing you 30 bucks each time you mow it. Just tell him the truth and let the chips fall as they will.
     
  10. hackitdown

    hackitdown LawnSite Silver Member
    Posts: 2,515

    Very good point. This is what marketing turds call the "opportunity cost". You need to ask yourself what opportunity are you passing up to do this $60 lawn for $45. If your phone is ringing with leads, your opportunity cost is high. If you are still aggresively building a client list, your cost is zero.
     

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