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Open Pricing

Discussion in 'Lawn Mowing' started by TurfMaster, Mar 27, 2000.

  1. TurfMaster

    TurfMaster LawnSite Member
    from Indiana
    Posts: 17

    Doing estimates for new customers and would like to know if it is wise to display your pricing scheme behind your quote?
  2. Hello:<p>I do not think it would be a wise idea. The most it could do is hurt you in the long.<p>The customer will be figuring out ways to prove you are off on you pricing stratagy & want you to lower your price.<p>If you don't have every scenario on paper, they do not understand extra obsticles, steep slopes, thicker grass, bare spots & etc... This has to be all taken into consideration when bidding. BTW it's none of their business, it's your business only!<p>Sooner or later it would get into the wrong hands & be used against you.<p>You are already Yards ahead of the competition if you have a pricing stratagy, keep it private & to your self!<p>----------<br>GrassMaster - Home: www.lawnservicing.com<br>My Start Up Page www.lawnservicing.com/startup/
  3. osc

    osc LawnSite Senior Member
    Posts: 502

    I must agree with grassmaster. The most &quot;open&quot; thing I do is bid on 2 complexes every year that are owned by the same company. They send all the losing bidders the results on who got it and how much. 2000 price is $85.00 cheaper than it was in 1995, $25 cheaper than 1999 and gas is going up. The winner is driving 2 hours round trip with nothing else on the route. I'm not the winner and I'm sticking with smoke and mirrors.<br>OSC
  4. Lazer

    Lazer LawnSite Bronze Member
    Posts: 1,446

    I mailed our price list out to a few customers who were priced too low. I highlighted where their lawn was priced and where it should be priced and still cut them a little bit of a break.<p>It CAN BE a useful tool in showing customers in writing what they SHOULD be paying. Make sure your price list is full retail and them cut them a bit of a discount.<p>I found that totally eliminated any squabbling about price.<p>
  5. paddy

    paddy LawnSite Member
    Posts: 67

    every time I tell a new customer that i generally charge between $20 and $35 an hour, they balk. Normally when they ask what I charge, i explain that i have expensive equipment and experience which helps me get the work done faster than they could, but i would have to see the work to give you a bid. If they press further and ask my hourly rate, i explain that i find it better to bid on a job and do it, because it is hard to explain my hourly rate. One of my good customer's recently asked what i get a yard of mulch for, (i had already told them that i install it at $60/yard), i told them $18 a yard, which is true, and they said that sounds reasonable. I also told them that they were my only customer i had told that too. When I overbid i sometimes give the customer a price cut, they love that, shows them that i'm honest. I underbid on a cleanup job recently, i'm gonna say to them, i will do this job for the price we agreed to, but i underestimated how much work it was, and would apreciate a little more money
  6. Evan528

    Evan528 LawnSite Silver Member
    Posts: 2,144

    paddy, keep dreaming!
  7. Charles

    Charles Moderator Staff Member
    Posts: 7,884

    When I can I tell people a job price. When I don't know how long it will take me I tell them an hourly rate. I never drop the price on a hourly price. I may negoiate a job price a little. Telling them an gouging price to begin with and then coming down. Only makes you look dishonest. And crate a bad first impression that you were prepared to take advantage of them. I am not embarrassed by what I charge and don't apoligise for it. And if they dont like it they can get someone else.
  8. slagerlawncare

    slagerlawncare LawnSite Member
    Posts: 97

    well said charles...
  9. MWHC

    MWHC LawnSite Member
    from Wyoming
    Posts: 202

    I try not to give out hourly rates. People @#$% their pants when they hear that. Would you wan't to hear your Doctors hourly rate? Would you ever go see him or her? Probably not. I only use hourly rates when I really have no clue on how long the work will take.
  10. TurfMaster

    TurfMaster LawnSite Member
    from Indiana
    Posts: 17

    Thanks for all the comments everybody, keep them coming, very good info for all. Especially the different experiences with realeasing pricing strategies to certain customers that think they're getting reamed on their lawn at the moment when they actually are not!<p>You know MWHC, you may have brought up a good point in your response about, &quot;Would you want to hear your doctor's hourly rate?&quot; Maybe we ought to start charging office calls (I know how much those are for my doctor....too much), call them service calls for estimates and one time mowings a month! You are very right with your comments, stating that they really don't need to know, their getting a price estimate...take it or leave it!

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