"Overpricing"

Discussion in 'Lawn Mowing' started by SamTheLawnMan, Jul 22, 2006.

  1. SamTheLawnMan

    SamTheLawnMan LawnSite Member
    Posts: 220

    I was just wondering how many other LCO's do this??
    I have 30 accounts that I cut for and they keep me as busy as I want to be, but when someone comes up to me while I'm cutting and wants a bid what should I do? I started going over to the peoples house and overbidding them for alot more than I would normally do it for. I figure if I get it I would just suck it up and add it to my route,(even though I didn't want it) then after a few cuts I would just drop some of my lower paying jobs.
    Question is: am I going at this all wrong....Or should I keep doing this??
    (just wanted a lil imput!!!)
     
  2. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900


    Doing just fine :clapping:
     
  3. Precision

    Precision LawnSite Silver Member
    Posts: 2,995


    If you have reached capacity then why not. The law of suppy and demand. When I run out of supply, then I demand more money for my time. Those who are the lowest paying go away to make room for the more profitable ones.

    this is good business

    Or put more simply, would you rather do 30 accounts that you profit $10 a month (each) on, or 30 accts that you profit $25 a month on. Pretty simple math.
     
  4. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    Oh ....ya .... I do the same thing

    N this same thinking is how we treat those whom become late payers or are pita's

    Never let em go ....just raise the price n if they meet it sweet ....if not ...who cares ....was gonna let em go anyways
     
  5. robby

    robby LawnSite Member
    Posts: 89

    I understand your thinking, but I look at it from a different angle. If a neighbor is inquiring on a mowing estimate, thats a prefered customer I'd like to obtain. The customers I most want to rid myself of are the ones that I have to drive furthest out of my way to get to. If its all about making money, then finding yards that adjoin should be what ya want. Being able to add yards without adding driving time or unloading the mower time is what its all about for me. Cutting down on wasted driving time is just one more way to increase profits.
     
  6. bigjeeping

    bigjeeping LawnSite Senior Member
    Posts: 903

    I do the same thing. The only difference between me and you is I WANT all the business I can get. I'm very comfortable with the number of clients I have, so I'm giving high estimates now, and some are signing on with me!

    The more the merrier.
     
  7. WJW Lawn

    WJW Lawn LawnSite Bronze Member
    Posts: 1,330

    Honestly...Ive done exactly what you're doing...and still do. Supply and Demand Brutha.
     
  8. waffletown20

    waffletown20 LawnSite Member
    from PA
    Posts: 100

    The demand for Lawnguys is high based on the fact that everyone's route is full in my area. It's tough to get any response. I come in with a really high estimate and they usually don't even care, they just want me to cut the grass. $$$
     
  9. WJW Lawn

    WJW Lawn LawnSite Bronze Member
    Posts: 1,330

    Same here...I quoted some lady a CRAZY high price because I simply am slammed and didnt really want the accound unless she was will to pay this much. Well...to my amazement...she took the price. I was like...oooookay lol $$$$$$$
     
  10. OMG

    OMG LawnSite Senior Member
    Posts: 275

    IMO, If your customers are not PITAs and pay on time, I would figure out a way to keep them serviced.


    Your promise to handle their property and not doing so affects your business image.
     

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