New Business, keeping buddy deals??

Discussion in 'Lawn Mowing' started by mtcjb, Jul 16, 2008.

  1. mtcjb

    mtcjb LawnSite Member
    Posts: 37

    I just got started in the business through a great deal on a mower, well I offered to cut a friends yard (2.5 acres) for $40 just to kinda get used to the zero turn, had never even used one when I bought this one, and figure out how much to charge. This was the third cut, he comes out with a check for $50 and says well do it for this from now on since gas is so high and what not (like he was doing me a favor). Everyone I've talked to in the business locally tells me average is $40-$70 per acre, I want to help my buddy out but I was planning on renegotiating price today at $65 a cut anyway which I feel is still a great deal. I don't have a steady customer base yet but my 8-5 is over $20 an hour and...sad to say... am living back at home to get out from under a divorce that cost me 20k in lawyer fees alone, but am almost clear of all the debt I incurred during that, so using my spare cheese to build this business and buy my toys (JD 757, stihl kb blower edger and trimmer, and 7X16 trailer so far...wanting to add newer duramax crew cab, enclosed trailer, and newer 4 wheeler to that next year). Not trying to get rich ,yet, but just want some opinions on how you guys would handle this. Think I am cutting all 5 yards I have wayyyy too cheap at the moment but got started late season and like I said get to buy toys instead of paying court costs so there is a degree of satisfaction most do not have.
     
  2. Phil G

    Phil G LawnSite Senior Member
    Posts: 843

    My thoughts would be to kep your buddys as it is, maybe try for another $5 for fuel increase. Hit your other contracts to off-set your mates one. Hit lower lowest price first and if they don't accept, walk away. The season will soon be over, hang in there.

    atb Phil:)
     
  3. StBalor

    StBalor LawnSite Senior Member
    Posts: 798

    If you just got these lawns in the last month or so i would just leave the prices alone for now. Raise them next year and for now bid new customers a little closer to your expected price range.
     
  4. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Posts: 5,362

    Been there done this.

    I'd lean towards just keep doing it at this point. Most people have no clue what the cost incurred are in business. The biggest penalty is the mental one, " . . hey I'm being taken on this. . . " This has a tendency to give one [me] a bad attitude when you know you are not making as much as you should.

    When you get more accounts to displace this one at the higher rate per hour kindly state the facts and ask him to payup or you move on.

    :waving:
     

Share This Page