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Raising prices

Discussion in 'Lawn Mowing' started by Lazer Cut, Sep 23, 2009.

  1. Lazer Cut

    Lazer Cut LawnSite Senior Member
    Posts: 906

    I was unclear on the post before lol My friend was buying a house and my customer was his Realtor...
  2. brucec32

    brucec32 LawnSite Platinum Member
    Posts: 4,403

    Ok, with your machines you should be getting more like $45 at least for a lawn that takes that much time. I'm serious, this isn't "top dollar" either. 45 minutes nets me $45 or more with no problems. I do 2 lawns side by side in an hour and get $80 and they say I'm cheaper than the last guy.

    I'm afraid you are not going to get people used to paying $25 to pay that much more in large numbers, so expect to have to start over to a large degree.

    Forget this "hire a helper" stuff until you A) have your pricing down and know your costs, B) have actual customers enough that you can't handle the workload yourself, and C) know that adding help will pay off. Then D) start someone seasonally part time who is going to be more motivated and intelligent than 'most' full time lawn care techs.

    If your main goal in hiring people is to somehow avoid work, you're in the wrong business. You'll be trading one kind of work for another, that's all. But from your pricing disaster it does not seem if you are "ready for primetime" yet in terms of growing.
  3. brucec32

    brucec32 LawnSite Platinum Member
    Posts: 4,403

    Don't show this to your accounting professors. They'll become suicidal. You can't charge $25 for a 30 min lawn, and $25 for a 45 min lawn. That is a 50% difference in time on-site! Gotta be more consistent.

    And those are tiny lots. You may need some more practice to get faster.

    From what I'm hearing you may well be more of a "salesman" than a "businessman". There is a huge difference. Ironically in today's society you'll likely make more as a salesman, most corporations are actually run by salesmen, so don't feel bad. Sales oriented people are often not into the numbers and details. They can, however, convince people to use their services.

    You are going to have to face facts and tell people for next season "I made serious estimating errors, your price will be XXX for this year". An unexplained 80-100% increase will be rejected outright. I would give them a rate that is still attractive (maybe 5-10% off what it 'should' be) so when they go get other quotes you'll still seem reasonable. Then gradually raise them from there over time.

    You are still going to lose many of them.

    With typical drive time I'd say you are currently maybe netting $10/hour after factoring in all the time it takes for maintenance, planning, etc, in addtion to the mowing time.

  4. dvog

    dvog LawnSite Member
    Posts: 91

    i think whoopass is right on!
  5. E.L.Co

    E.L.Co LawnSite Member
    from Texas
    Posts: 186

    10 an hour! hell mcdonalds will give you 6 and a big mac a day lmao but yes as my previous post said and it appears you want to go this route...go get em! you do not want crap customers. just yesterday i bid a lawn for 35 a cut IF they sign a 2 month agreement and cut a check for 140 on the spot she said she has another guy that will do it for 23!!!! i chuckled and said this ...mam if he has insurance and pays taxes and does quality work he will go bankrupt in short order charging that (she was trying to bend me over, this isnt baseball im not catching and shes not pitching!) if you feel this is who you want to hire just call me anytime if you want quality because id be happy to help you out, have a great day:] i didnt get the account but lets face the obvious. i am a landscaper because working for the man and his wages isnt my thing. so why with all my bills and overhead would i do it for mcdonalds wages? i would rathe play playstation 3 and eat cheetos lol a common mistake with most self proclaimed business owners is that they are oblivious until its to late, and they find that their business was running them and not the other way around. good luck ! always glad to be of assistance
  6. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,896

    Yep biweeklies need to be charged at least 30-50% extra - at least thats what I do here in the north. Extra trimming is involved, and sometimes the lawns get overgrown. A lot of the time biweekly business is simply because the customer does not want to pay for good, regular, weekly service.

    Better yet, dump the bi-weeklies.


    HOOLIE LawnSite Gold Member
    Posts: 3,981

    Time to 'man up' and run your business. It's simple really, you notify your current customers that their price is going from X to Y. You'll lose some but pick up new ones at the higher rate. Such is the cycle of business.

    I would actually, raise them now. Most customers are not going to go looking for another LCO this time of year. Get in used to the higher rate now. I always do my price hikes late in the year.
  8. AndyTblc

    AndyTblc LawnSite Fanatic
    Posts: 5,469

    My mowing is at a good price right now and I'm happy with them, but my snow plowing prices are going up AGAIN this year, not drastic another dollar or two or three depending on driveways. One driveway is going up a big chunk, when I used my tractor, I didn't tell him the price, he just paid me $10 and it's long driveway, and so last year when I bought the plow, I plowed 4" in the morning, then 7" again at night, he gave me $10 in the morning and $5 at night, and this year that AIN"T gonna happen. He thinks I need to earn my pay, and I took offense to that, he has some heart problems, I feel bad for him, but when it's costing me money, I come first before anybody else. I have to take care of myself first. So I'm going to tell him $15/each time or I can't do his driveway, all my other customers said "it's about time you raise the price" They were worried about me, and so I have a great group of customers.......Except the one that ripped me off. He just says "here's some money for gas"..... Well what about wear and tear, and my time and this and that. He's ran a business before, but I don't think he understands the concept.
  9. coolluv

    coolluv LawnSite Gold Member
    from Atlanta
    Posts: 3,755

    You nailed it.

  10. Lazer Cut

    Lazer Cut LawnSite Senior Member
    Posts: 906

    Thanks guys for the replies. I told one customer that I was rasing his $25 lawn to $30 next year and he looked at me with this deer in head lights look and said well I'll have to think about using you next year! I smiled and replied good luck still wont find anybody cheaper than me. He told me he could find somebody for 15-20 to do it!! I just laughed and smiled put my mower back on the trailer got my money and took off... That yard will def. be off my list.

    I have a question. I have two very nice $25 lawns, both I think are $30 but both customers want me to fertilize once a month, mulch, plant some trees, and few more things. Do you guys recommend keeping them at the price that they are at to get the rest of the service and not risk losing them if I raise my price? I have done some cost research and it is $11.25 per hour that I run my mower (insurance, gas, mantaince, advertising) and .17 cents per mile on my truck. That sound about right to you guys?

    Again thanks for all the help... making me a better business person with ever post

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