Raising Prices with larger equipment

Discussion in 'Lawn Mowing' started by dannyc33, Aug 11, 2003.

  1. dannyc33

    dannyc33 LawnSite Member
    from indy
    Posts: 95

    I'm am currently running a 60" Super Z and 52" Gateway wb, which I only use for about two hours a week.
    Since I almost exclusively use the Super Z I bill at $60-65/hr, sometimes I use a combo of time and sq ft at $1/1000 sq ft, but mostly the $60-65/hr way.
    I plan on buying a 72" Lazer Z nect year and am wondering since I'll have about a 20% increase in productivity (and won't have to double cut as much as I did with the Super Z) if I could get about $75/hr on the accounts that I would use the 72" on.
    Now a $25 or $30 lawn would still be a $25 or $30 lawn but I could still make about $75/ hr since I could cut it faster. I know on lawns that are 1/3 acre and less I eighter couldn't use it or it wouldn't really save much time, but for 1/2 acres and up would this be a good idea to bid at around $75.

    I also know that it depends on your equipment, a 36" wb could only get around $30-35/hr. And when I ran a 48" WB I billed at $45 since it's smaller and slower than a 60" Z.

    So what do you guys think, can I bill at around $75/hr with a 72" Lazer Z?

    Any help would be greatly appreciated!!!
    thankyou kindly,
    Dan
     
  2. GLAN

    GLAN Banned
    Posts: 1,647

    If you charge the same and lower your time with the larger equipment. Are you not going to make more money as per time? I think so.

    And wouldn't that save in time get you to around that figure you want? I would think so.
     
  3. Both for only 2 hours a week or just the Gateway?

    Raise price, cut down time?

    Do you think that will work?

    You can only do that to a certain extent.

    Also you will have to double cut more by adding 12" of deck width.

    Is it more productive to use the 72" mower in all reality or just on paper?

    BTW around here the larger the account, the price per an acre goes down.
     
  4. The Lawn Boy Pro

    The Lawn Boy Pro LawnSite Bronze Member
    Posts: 1,217

    Wow, whered ultimate write that one Mike?
     
  5. geogunn

    geogunn LawnSite Gold Member
    from TN
    Posts: 3,010

    that was a shock to me when I first got on this forum and found that guys were cutting larger lawns with more expensive equipment but only making what I was making.

    and the answer was that because they could mow more for the same money, they did.

    not that I really know, but it seems to me that by going to such a larger unit that your increase in productivity is going to be decreased by your abillity to use the larger unit on smaller props. I dunno. good luck.

    GEO
     
  6. xpnd

    xpnd LawnSite Senior Member
    Posts: 378

    WOW! there is actually another individual that questions the "I'll do more work for less money simply because I can do it in less time." theory. I always thought economy of scale should benefit the business smart enough to have the equipment that makes the work easy or fast.

    I think for your customers it will be a hard sell. I think they will see the price increase as a subisdy for equipment you purchased but yet can not afford. I think it would be better to sell the uncommitted time resulting from more efficient cutting at your desired new rate and then begin weeding out the least profitable jobs next year offerring the new price. If they don't renew fill it with a new customer that will pay your price. 10% of your customers will account for 90% of your losses. Identify which 10% they are, hike your price or fill these new vacancies with new customers.

    I've never understood that if I (my crew) can cut 4 invidual residential jobs totalling approx 1 acre for $120.00 in an hour, why would I ever bid a 1 acre job less than $120.00. My operating costs for the 21's are significantly less than the big Scaggs. What I make up in time using the bigger decks and not moving the rig, I need to gain in overhead for more expensive repairs on larger equipment. I have very few acreage jobs because of this approach but those I do have are definitely worth the work.
     

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