need to look at this...

Discussion in 'Lawn Mowing' started by tiedeman, Apr 16, 2003.

  1. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    http://money.cnn.com/pf/features/lists/salary_costliving/index.html

    All the times that people give prices on lawns & etc and how others are saying that you are too cheap or lowballing you need to first look at this. This gives the cost of living and salaries for all areas in the U.S.

    Use the cost of living calculator and salary calculator off to the top right of the article...some pretty interesting results and will make people think twice before they laugh at someones "lowballing price." Because actually, their price might be dead on for that area geography.

    Like I have said before, when giving a price, it depends on the geography.
     
  2. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    First off the word you're looking for is demographics instead of geography. You can usually check demographics on a county by county basis and sometimes by major city. This still won't tell you what the demographics are at a neighborhood level. Within a mile of my house there are multi million dollar houses right next to 200 thousand dollar shacks. Even the price of gas can vary widely depending on where you are in my county.

    The lowballer complaints are usually about one person who goes into a neighborhood and sets a much lower price than everybody else who is working that neighborhood. It has nothing to do with demographics.
     
  3. stevo22

    stevo22 LawnSite Senior Member
    Posts: 344

    i agree w/ pretty much everything richard martin said except for one thing...since when is a 200k home a shack???
     
  4. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    200 grand is the least amount of money you can spend on a house within 5 miles of my neighborhood. For that money you will get a house on a 3 to 4 thousand sq ft lot. The house will probably be under 1 thousand sq ft and will be a 60 year old converted beach cottage that needs a lot of work.
     
  5. harpoonalt

    harpoonalt LawnSite Member
    Posts: 55

    I think what Tiedeman was trying to say is, don't jump on someone who posts a price as being a lowballer, since in their area, that may be a fair price. Even in Vt. now, a $200,000 home isn't what it used to be, and real estate here can be much cheaper than other areas of the country. A neighbor of mine moved and sold his very nice $250,000 house and moved to Fairfield, Conn. where his new house cost him $475,000 and wasn't anywhere near as nice as his old home. In Fairfield, a $200,000 home is a shack.Ever price homes on the California coast? $200,000 will buy a nice storage shed.
    His choice of words may not have been perfect, but the point was perfectly clear.
     
  6. What does that chart have to do with the price of Lawncare?

    Does that data (if its actually true) justify someone charging $30 on a 1.5 hour lawn just because they’ve been doing it at that rate for ten years?

    Maybe you could post some data Tuna Bycatch percentages, Dodge Transmission Longevity, Hair-Care fragrance percentages, or Asian Cockroach distribution. That data would have just as much relevance to low-balling.
     
  7. tiedeman

    tiedeman LawnSite Fanatic
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    Posts: 8,745

    Exactly..my choice of words were not precise..but what I was trying to say that in different areas prices would seem high or low compared to another area. When a guy says like $25 for a minimum cut and someone else says how can you make it will only a $25 minimum cut I charge $35 it really depends on the location. That $35 cut might be happening in like Chicago, while the $25 cut is happening in a very smaller city. There are so many factors when it comes to the price of lawn care I really don't think that anybody has a justified right to bash someone elses price because that price might be perfect.

    Hopefully that cleared up some things
     
  8. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    I understood what he was trying to say. I was trying to say that the majority of complaints are aimed towards lowballers in general and not towards someone who may post on this board. I was also saying that the demographics that are included in his link are worthless for just about anything and lack any specifics as to how they arrived at those numbers.
     
  9. tiedeman

    tiedeman LawnSite Fanatic
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    Posts: 8,745

    worthless...all demographic information is not worthless. You could use this information especially if you are going to say for example: open up a new branch in the next city. You can compare the average income in that area to the area that you are already located at. You just adjust prices accordingly to the income level. Trust me because I have a degree in Industrial / Organizational Psychology and we use stats like this all the time in regards to marketing. If you don't have numbers and stats you can not evaluated whether a certain product or service will work in that area and for what price.

    Everything from income level, race, cultural background, social status, all play important information is regards to how you will market & sell your service or product.
     
  10. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    Mercer Human Resource Consulting and ACCRA Cost of Living Index

    contact these people and ask how they arrived at the information that they did. They are the ones that did the study.
     

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