Pricing blocks of neighbors...

Discussion in 'Lawn Mowing' started by Bassman, Feb 13, 2001.

  1. Bassman

    Bassman LawnSite Senior Member
    Posts: 270

    I'm 8 months into my lawn/landscape maint biz. I'm starting to see the word of mouth referrals come in from existing customers telling their neighbors about my work. These are all yearly accts. Question... I'm picking up blocks of customers in the same area and on the same street. Lining up 1,2,3,4 down the street and then across the street, etc. I'm very happy that my work is starting to pay off this way. These people obviously talk to each other on a regular basis. If I estimate that one would usually be $10 or $15 more than the existing account, I am letting it slide and staying at the same price as their next door neighbor. It is saving me travel time which is money and I'm thinking one will tell the other , eventually, what they are paying for service. If the job is within 10% or so of the others on the same street, am I correct in discounting to keep the price uniform?
    Bassman

    [Edited by Bassman on 02-13-2001 at 07:22 PM]
     
  2. awm

    awm LawnSite Gold Member
    Posts: 3,354

    Sounds like a buisiness judgement call.
    Long as the customers dont complain about pricing.
    Would not mind having that kinda problem.
     
  3. Scag48

    Scag48 LawnSite Fanatic
    Posts: 6,067

    Sounds like you got a good deal goin'. I wish I had customers that talked to people more often. LOL. I wouldn't try to gouge them because they might tell their neighbor and you might lose a job or might lose a chance at a job. AWM is right, this is a judgement call.
     
  4. bob

    bob LawnSite Platinum Member
    from DE
    Posts: 4,254

    I'd let the customer know that the discount is based on cutting the neighbors lawn as well. What happens if one customer drops you. Personally I wouldn't discount any lawn.
     
  5. Twotoros

    Twotoros LawnSite Senior Member
    Posts: 494

    If all take the same time within five minutes but if they differ much in time price accordingly. I do three in a row on one block one takes as much time as the other two combined.
     
  6. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    I wouldn't discount them either. Get the fair amount. If they like your work and your fair, you will get all of them.
     
  7. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    I don't give discounts to jobs that are side by side because as was noted above you never know when one of those jobs will disappear and then you are stuck doing the job for cheap.
     
  8. Greenkeepers

    Greenkeepers LawnSite Senior Member
    from NE Ohio
    Posts: 695

    Personally, I wouldn't discount 10-15 dollars.. If it was maybe $2 then I may let it slide.. As everyone said, you never know when they will leave.
     
  9. lsylvain

    lsylvain LawnSite Senior Member
    Posts: 777

    What I actually do is give neighborhood discounts.

    Each additional house in a certain area is "X" % off the whole lot of houses. That way if one customer pulls out the rest of the prices go up cordingly, and it encourages neighbors to talk to each other(it saves them $)



    How I figure the price is simple.

    Say there are 3 houses in a row.

    Priced individually they are $30, $40, and $50

    The total price is $120

    If I was offering a 5% discount per customer they would get 15% off the total bill $18.00 off total.

    $18 / 3 + $6 off per customer.

    So I would charge them $24, $34, and $44

    Your only out $18 and you probibly saved 1 hr+ of loading, unloadind and travell time. if you have 3 employees you save $18 in labor Min.
     
  10. TGCummings

    TGCummings LawnSite Senior Member
    Posts: 773

    $10 to $15 sounds like a pretty steep discount, particularly if the neighborhood leans out at some point. Like Greenkeepers, I might let a couple bucks slide but nothing that steep.

    Be sure to keep track of the total time on the job as you continue there. If, after a couple of months, you're finding that you're saving large chunks of time being there, then you could consider an across the board discount of 5% for the neigborhood, contingent on keeping the entire block.

    Either way, it sounds like things are starting to really roll for you. Congrats!

    -TGC
     

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