New customers and some honest advice!

Discussion in 'General Industry Discussions' started by Rebel, May 6, 2005.

  1. Rebel

    Rebel LawnSite Member
    Posts: 26

    I have ran into a small problem that is growing wings now. I bought out a local company and his 25 yards. He showed me the route and it was within my established route of 18 yards in that five mile area. I had to pick this up since it was right in my area and that would give me a couple of good cutting days with minimal travel time which is always nice. I started on April 1st. I did not raise any prices on his "former customers." (Be advised that the guy is a mutal friend of 10 years.) After a month of cutting, I have found that most if not all his yards are under bidded and with gas prices on the rise along with everything else I am at a cross roads. He advised me not to raise prices right out of the gate since some might opt to leave before I could prove myself, well okay. :dizzy: Now that I have done all the right things so far without any complaints I feel the time is right for a modest increase in price. payup

    What I need is a basic market price for the following: Mowing, edging, trimming and blowing off debris, your basic service for the following size yards. :help:

    10K
    15K
    20k
    What about an acre?
    I have over seven yards now at two to three acres. (Note, these customers just want cutting and trimming weekly with a good edge once a month....don't ask?)

    I do not want to lose a bunch of customer if it is not necessary. I would like honest feedback and not a bunch of sarcastic comments that I have seen on some of these threads. Thank you each in advance for your feedback and time.
     
  2. Runner

    Runner LawnSite Fanatic
    Posts: 13,496

    I wish I could give you the majic numbers for price,...but I can't. What you neeed to do, is figure up what it is costing you (ALL your costs). Then, with the amount of fuel difference, add a surcharge to this. With a nice letter, I thing most of these people will understand. ZI agree with your friend that you should NOT do as a general price increase. This just seems like it was a "lying in wait" tactic. I hope this helps.
     
  3. BCSteel

    BCSteel LawnSite Senior Member
    Posts: 876

    Its your own fault for buying under priced accounts to start with.
     
  4. Texas Mowem

    Texas Mowem LawnSite Member
    from Texas
    Posts: 59

    So much for no sarcastic comments

    Look at the lawns that are the most underpriced and only raise those for example if 6 of them are severely underpriced only raise those 6 worst case you lose those 6. if you raise prices the customer is going to think they have been taken and will probably look elsewhere.
     
  5. pagefault

    pagefault LawnSite Senior Member
    Posts: 492

    $25-30
    $30-35
    $30-40
    $50-60

    Of course, that is here, not there. I disagree with the people who say you need to charge based on your costs. You need to know what the going rate is and get your costs under control so that you can charge what the market will bear and still make money.

    Find some friends with different sized properties and have them get some estimates from your competition.
     
  6. BCSteel

    BCSteel LawnSite Senior Member
    Posts: 876

    Thats not sarcasm, its the truth. Why would anyone buy underpriced accounts and then complain about it?
     
  7. Rebel

    Rebel LawnSite Member
    Posts: 26

    Thanks for the input and advice. I have made some adjustments and things are where they should be. I would like to thank each of you for your honest input and feelings. Everyone must speak from the heart, even if they can not understand the full situation. Thanks again!
     

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