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Raising prices

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

  1. mcw615

    mcw615 LawnSite Senior Member
    Posts: 473

    We charge $12-$15 just to show up for residentials. $25 to show up at commercial. Then a minimum of $60/hr per man from truck-in-park to truck-in-drive.
     
  2. Lazer Cut

    Lazer Cut LawnSite Senior Member
    Posts: 906

    Hey guys thanks for all the help! I am making letterheads to send out to change from $25 to x amount. I am in the process of getting 5 daycare centers right at about a $18,000 a year for fert, slice seed and mowing. I have been reading these posts over and over. Get a little more info everytime.

    This thread is in Turf Magazine? Well that's great! I am glad this helps not only me but everyone around me. If anyone has a extra copy I'd like to see it or know how to get ahold of it please let me know.

    Thanks guys again. If anyone has more information we all appreciate it. I have learned a lot from this thread. Glad my stupidity of the new guy estimating has lead to a thread that is just filled with information!
     
  3. delphied

    delphied LawnSite Silver Member
    Posts: 2,067

    One of the most honest posts Ive seen.
     
  4. Lazer Cut

    Lazer Cut LawnSite Senior Member
    Posts: 906

    Ya about the money lady lol... I am just about to turn 18 on Nov. 2nd so I have a little room to recover for next year. Graduate decent time first week in may and gonna hit the ground runnin. I am setting up meetings to sign contracts after my birthday lol that way its legal because I'll be of age.

    Thanks guys again. Anyone want to ad more than welcome.
     
  5. Lazer Cut

    Lazer Cut LawnSite Senior Member
    Posts: 906

  6. performanceLLC

    performanceLLC LawnSite Member
    Posts: 6

    Hey lazer cut I know there is an scientific method for figuring how much you need to make per hour/min. But it all boils down to what your needs are and your economic area. I know the next guy has 20 thousand worth of new equipment and a crew working with him but when you crunch the numbers he probable is bringing home less than a one man crew with used equipment. as long as it works for you that is your whole goal. I just started my business in late April this year done some shopping around for used equipment and put my own equipment to work for me. I have an john Deere 118 I already had an husqy weed-eater, bought an used scag 52 walkabout's for $800, and lowes husky backpack, an used tanka hedge trimmer from the pawn store. put my own rakes to work. a little investment in business cards, insurance, and word of mouth. I have 1 municipal account, 3 business accounts, 28 yards. 2 property management companies. and loads of gutter clean outs a month. I average about $4500 profit a month give or take $500. Best thing I was not in the whole before I got started good. Now with extra in the bank next season I will purchase some new equipment and pay cash. Be creative and smart. Start ahead not behind.
     
  7. Lazer Cut

    Lazer Cut LawnSite Senior Member
    Posts: 906

    Next year I plan on hitting the ground running. I have advertising being set up now. Getting post cards this year instead of flyers to see if that may work better. They look more professional to me but I am going to look into getting those professional looking flyers which will probably work great (hopefully).

    Thanks again guys for the posts. Has helped me out more than I can say.
     
  8. Lazer Cut

    Lazer Cut LawnSite Senior Member
    Posts: 906

    Hey guys... just a little update... I did get the Daycare centers for this upcoming season... I have already added 11 residential accounts and I have barely advertised... Hopefully this year will be great for everybody

    I have dropped the PITA customer that I was doing and losing my arse on his 2 acre prop... ya I researched it... 92ksqft... I lost my butt on that prop last year... not this year unless he wants to pay what I am going to charge for props like his.

    Thanks to all that posted...
     
  9. RandallM

    RandallM LawnSite Member
    from Alabama
    Posts: 122

    I basically am in a similar situation with some properties that I picked up last year. My minimum price to drop my trailer and unload my equipment is $35. Since last year was my first year in business, I was getting a feel for bidding properties and feel I underbid several at $35 when it should really have been in the $45-50 range. I am a part time operation and probably will not grow beyond 20-25 customers. I finished the season with 15 regulars and will keep all but a couple. Rather than run off the ones I have by raising prices, I figure I will be more aggressive in my pricing for new customers. Once I have topped out for what I can handle, I'll raise prices accordingly the next year on the customers I feel I have underbid. Not by much, maybe $5. If I lose them, I will have enough of a customer base to sustain me and will eventually pick up other customers to replace them.


     

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