Proposing Pricing

Discussion in 'Landscape Architecture and Design' started by Meier, Sep 25, 2003.

  1. Meier

    Meier LawnSite Senior Member
    from DFW
    Posts: 269

    Ok. When you guys propose pricing to customers, do you list out each line item and the price for that line item, or do you list out all the line items and a total for everything?

    Seems to me if you list out everything with each individual price, the customers may pick and choose more easily, whereas if you list everything and present only one price, you're more likely to get all or nothing.

    What works best?

    Thanks,
    DFW, TX
     
  2. AGLA

    AGLA LawnSite Bronze Member
    Posts: 1,749

    Line items make it easy for customers to try to rework the proposal, just like you said. You'll do much better to list out all of the plants and their sizes with a flat price. If they are balking, let them know that the pricing is solid for that number and size of plants, but you could reduce the size or numbers of them. Don't forget to mention that it will not have the same effect as the "proper" sizes and numbers.

    It works well if you have done a good job at selling them on your design. It also shows that you have some quantitative basis for your pricing and not throwing numbers out to see what you can get. If they like YOUR landscape they will buy it. If they are not keyed up for YOUR landscape and are just shopping around, the low bidder will get it and you can can move on to landing the right jobs and make money instead of every job and not making as much.

    Also price items like :
    brick front walk on 6" stone dust base as per plan ...$x.00
    install sod in front of house, finish grade with 6" of loam.... $x

    Avoid square footage as much as possible or they will reverse price it and ask someone else what they charge per square foot.

    Just one way to do it, not the only way. I like it because it makes it like buying a car off the lot. If you gave them enough understanding of the design and they are excited about it and they know what it costs they will buy it. People get horny for a car if they sit in it and test drive it. You have to do everything you can to give them the same excitement for the landscape. If not, they will be as excited as they would from reading a newspaper ad for a car for sale. They might drop the custom rims, but the rest of the car is sold.

    At the dealership they have the advantage: "what will it take to get you into this car today?" vs. "1999 Malibu, runs great, excellent condition" in the paper.

    That is what sells a profitable job. You have to make sure that YOU have the thing of value that you are willing to exchange for money. You can't look at the money as the thing of value that you are going to do tricks for. It only works if that is, in fact, the case. You have to be able to walk the walk as well as talk the talk, so make sure that you are selling what you really can do.

    Just my opinion, not necessarily correct.
     
  3. Meier

    Meier LawnSite Senior Member
    from DFW
    Posts: 269

    AGLA,

    Thanks. Very good insight.

    Later,
    DFW, TX
     

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