Lawn Care Forum banner
Cancel
Create thread New Forums

2023 price increase?

Jump to Latest
41 - 60 of 132 Posts
#41 ·
You guys pricing is way to cheap. I charge $65 for a 1/4 acre. $100 for 1/2 acre and $150 for an acre.

I run exmark turf tracer 36 with sulky and 33 inch dewalt with sulky.

90% of all my yards are 1/4 or less. My area is flooded with lawn business. But I found my foot hold with a national company with 140 residential yards and I take care of 75 of them in my service area. Contracts are what will save you in the end.
 
#42 ·
FLC2000 said:
Our minimums for mowing are definitely going up. I'm going into my 23rd year in business and I'm shocked at prices I see. Our mowing starts at $45 a cut and that goes to 10,000 sq ft. I have seen signs for mowing starting at $25 or $30. I haven't charged $25 in over 20 years. Can't imagine how these guys are making any money.
Click to expand...
I've seen the fleet of new companies every year, some with the latest and greatest all shiny and ready to go, others with the latest in shade tree mechanic pile together equipment... Most don't make it, I dare say a good portion is done when the temps hit 90 around June, July at the latest, then leaf season tackles quite a few of them too.

Something like half of all new businesses are not here in 2-5 years.
Around 80% disappear between years 5-8 and around 90% are not around after 10 years.
And by the time you get to 20 years, you're a 1 percenter.

The pricing has a lot to do with it I am sure but make no mistake, it's not as easy a business to get into as some might think. The entry level cost is the one bonus, but everything else... It takes experience, an incredible amount of dedication, a lot of sucking up... I remember my first years, there was an emotional toll that came with it.

It's a dirty, sweaty job. You get wet when it rains, can't work if it's all wet, wind and cold has a way with you, so does the heat... Then there's maintenance, if you're not mechanically inclined this alone could spell trouble.

Customers "help" the new guy in more ways than one too.

I could go on...
 
#43 ·
Brucey said:
There's massive real world inflation going on right now. Worst in decades. Labor costs are only going up. I don't know if it's possible to compensate for that with efficiency improvements. I would think at least 8% bumps minimum to next year just to stay even when inflation adjusted. I run a 60" diesel ztr and 36" stander for narrow gated areas. Efficiency is fine. Route density is the limiting factor. My $45 accounts are going to $50 next year. Maybe they'll decide to do it themselves or get a cheaper new guy. If they choose to continue with this luxury service, all the better. My $35s are going to $38. $40s to $45. Hauling thousands of pounds and dollars of equipment to a location each week requires a certain commitment from the client, financially. Imo it's easier to succesfully increase rates during higher inflation.
Click to expand...
When you are talking about raising $3 maybe there is the problem. Go up $10 then leave price alone for a cpl years. You don’t want customers that stress over a $3 increase anyway. . My minimum for lawns is now $50. Almost all new lawns are priced way above my hourly goal so I won’t need to bump any of them up next year unless they are “undesirable” and I want to charge a PITA fee.
 
#44 ·
Jashley73 said:
I know the answer to combat fuel prices! - Cordless trimmers!!!

🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥

That oughta' be good for 10 more pages! LOL
Click to expand...
I did the math when fuel was it’s highest I was averaging around $2 per man hour (about 1/2 gallon) between truck and mowers etc. If gas drops to $2 I save a whopping $1 per hour. it’s over taxation that really kills us.
 
#46 ·
sidemouse.ii said:
Something like half of all new businesses are not here in 2-5 years.
Around 80% disappear between years 5-8 and around 90% are not around after 10 years.
And by the time you get to 20 years, you're a 1 percenter.
Click to expand...
Yup. Just click on the websites of members here. Whenever I search on here and I see a web link I usually click just to see if they are still in business and the majority aren't. The ghosts of lawnsite past...
 
#47 ·
Chilehead said:
I did a major price hike across the board this year. In my market, all materials have gone up in price about 1% - 5% per month, every month. Bulk landscaping supplies, even more. Examples include mulch in January of '22 was $30.00/yard, now it's $45.00/yard. Pea gravel in January of '22 was $48.00/ton, now it's $94.00/ton. Most common trees/shrubs at wholesale were $4.00/gallon, now $7.00/gallon. Pesticides and fertilizer has all doubled or tripled depending on the specific product.
I will try my best to keep grounds maintenance prices where they are now in '23, but don't think any other services will be profitable without a price hike. My expenses are higher just like everyone else's, and I have profit margin benchmarks that need to be met.💵💰
Click to expand...
Awesome web site!
 
#48 ·
GRANTSKI said:
Barely anyone talks about cutting costs or finding ways to be more efficient etc. there’s room for better margins if you can get the same job done in shorter time and find ways to run with a lower overhead.
Click to expand...
I agree 100%! A lot of us sound like the city, schools and government. Saving where you can will be a big part of this problem.
 
#49 ·
Cardinal Lawn said:
I agree 100%! A lot of us sound like the city, schools and government. Saving where you can will be a big part of this problem.
Click to expand...
Being mindful of waste and inefficiency should be on-going so I’m not sure what it is you are suggesting be “saved”. There are also downsides to the lean philosophy that aren’t weighted enough in my opinion.
 
#50 ·
RSG said:
Being mindful of waste and inefficiency should be on-going so I’m not sure what it is you are suggesting be “saved”. There are also downsides to the lean philosophy that aren’t weighted enough in my opinion.
Click to expand...
I agree this should be on-going, but I’m like most and increases in prices is the go to. “Saved” meaning time, fuel, software usage, equipment (we all love new stuff that’s bigger faster etc.). I also have no doubt most of us that have been around for several years watch this closely already.
 
#51 ·
JNyz said:
Charges should go up every year. If cost of living goes up ever year, landscape charges should.
Click to expand...

yeah, that's living in an ideal world. Unfortunately, we don't. We work in an industry that has been saturated with people who left their office jobs, or got fired, and thought cutting grass and doing some landscaping would be easy. They bought some equipment and charged 5 bucks less a cut and took all the legitimate companies' customers.

I lost a dozen yards this year to guys like that. Doesn't sound like a lot but when my average mow customer spends 1700 bucks a year it adds up quick.
 
#52 ·
Cardinal Lawn said:
I agree this should be on-going, but I’m like most and increases in prices is the go to. “Saved” meaning time, fuel, software usage, equipment (we all love new stuff that’s bigger faster etc.). I also have no doubt most of us that have been around for several years watch this closely already.
Click to expand...

The biggest way I save money is looking over my mow routes every season and tightening them as much as possible. Less window time = more money.

I also cut down some 3-man crews to 2-man crews. If a yard doesn't need a 36 in the back, I have one guy mow and one guy trim as opposed to fenced in yards where 1 guy is mowing the front, 1 guy is mowing the back and 1 guy is trimming.

I've also traded in a lot of my 48-inch decks for 52-inch decks.

Price increases NEED to happen, but owners need to look in the mirror.
 
#53 ·
FLC2000 said:
yeah, that's living in an ideal world. Unfortunately, we don't. We work in an industry that has been saturated with people who left their office jobs, or got fired, and thought cutting grass and doing some landscaping would be easy. They bought some equipment and charged 5 bucks less a cut and took all the legitimate companies' customers.

I lost a dozen yards this year to guys like that. Doesn't sound like a lot but when my average mow customer spends 1700 bucks a year it adds up quick.
Click to expand...
I don’t mean this in a bad way, So what?

loose a dozen, sell 2 dozen more.
And if it was truly $5, that odds are you failed to provide or demonstrate value to the clients.
 
#54 ·
grass man 11 said:
I don’t mean this in a bad way, So what?

loose a dozen, sell 2 dozen more.
And if it was truly $5, that odds are you failed to provide or demonstrate value to the clients.
Click to expand...

I won't have a problem replacing them. Thats not the point. Loyalty is a 2-way street. When they call me up and tell me how great of a job we do but they have to cut corners and save a few bucks I tend to take that personally. I probably shouldn't but I do. 23 years of doing this and I still take things personally.

I dont let them know that though. I just smile and say, "if something changes let me know".
 
#55 ·
JNyz said:
Charges should go up every year. If cost of living goes up ever year, landscape charges should.
Click to expand...
If you do this the customers you keep will be ones that become accustomed to this and will not react negatively when you raise prices.
 
  • Like
Reactions: Puttinggreens and Cardinal Lawn
Save
Reply Quote Like Like
#56 ·
Rick1111 said:
In fert and squirt trying to find a good balance right now is like trying to spit into the wind and not get hit. I’ve got no good answers we are just trying to price to afford but at the same time remaining competitive.
Click to expand...
Yes, pricing is tricky in the fert & squirt world. It's November, and I'm getting clients asking about prepayment for next year. It's hard to know what the economy is going to do in a few months or less currently. Everything is fluid right now, and it seems that charges have to be assessed month to month. I will probably bump up prepayments just a little bit. The rest will have to be evaluated as the beginning of the season gets closer. I might not get the best rate on some, but others I might have the chance to level up on later if inflation spikes again. This past year my minimum charge for new pickups went from $48 -$58 in just a couple months. I'm considering $60-$62 minimum stop for starters. This would be for 5000sf lawns and under.
 
#57 · (Edited)
RSG said:
Being mindful of waste and inefficiency should be on-going so I’m not sure what it is you are suggesting be “saved”. There are also downsides to the lean philosophy that aren’t weighted enough in my opinion.
Click to expand...
I've been down both roads, I still feel that overall I run lean and do things that save a lot of money.
However there comes a point when I find myself stepping over dollars to save a nickel, so to speak.
And the more I get into the cost cutting mindset the worse it gets, to a point where I'm not making much profit and spending all sorts of time and effort "saving."
I still have some things I do that I question, such as aluminum can recycling and homemade solar heaters. They certainly help reduce cost, but is the time and effort worth the pennies?
On that note I still bend over and pick up a penny, too.
Because it never hurts to be humble.

Today I do my best to follow along on the price scheme, without getting all out of hand.
We each have to know, as individuals...

Whether we're really saving money or are we stepping over dollars to save nickels?
And are we raising prices because we have no choice in the matter because if we don't we can't pay our bills, or are we doing it simply because we can? Is that fair to the customer?

And you know, with present inflation (and news talking about it's going to continue throughout 2023) it's hard to stay completely objective too. I mean sure I want to be fair to my customer, but to some degree I'm also a bit scared.
 
#58 ·
sidemouse.ii said:
I've been down both roads, I still feel that overall I run lean and do things that save a lot of money.
However there comes a point when I find myself stepping over dollars to save a nickel, so to speak.
And the more I get into the cost cutting mindset the worse it gets, to a point where I'm not making much profit and spending all sorts of time and effort "saving."
I still have some things I do that I question, such as aluminum can recycling and homemade solar heaters. They certainly help reduce cost, but is the time and effort worth the pennies?
On that note I still bend over and pick up a penny, too.
Because it never hurts to be humble.

Today I do my best to follow along on the price scheme, without getting all out of hand.
We each have to know, as individuals...

Whether we're really saving money or are we stepping over dollars to save nickels?
Andare we raising prices because we have no choice in the matter because if we don't we can't pay our bills, or are we doing it simply because we can? Is that fair to the customer?

And you know, with present inflation (and news talking about it's going to continue throughout 2023) it's hard to stay completely objective too. I mean sure I want to be fair to my customer, but to some degree I'm also a bit scared.
Click to expand...
I agree! I’ll pick up change and recycle cans, copper wire etc…. And I feel the same, is it worth the time?
 
#59 ·
Mitty87 said:
So our breakeven is now $60/man hour CAD and includes owning a small excavator on payments
Click to expand...
Curious if you figure in the ownership cost of the excavator into every billable hour, regardless of whether the excavator is on the job?
I know my total general overhead which gets factored into every billable hour, but I exclude tools that cost over roughly $1,000.
Those get factored into a job by job basis. For example, every paver job gets an additional cost added on for compactor, cut off saw, demo hammer etc. I also factor in a delivery charge and hourly rate for my skid steer. So some of these tools I do not recover cost on the job unless they get used.
This may seem a little dicey if a tool doesn't get used much in the year ( my $3,000 compactor might get 50 hours a year), but when those tools do get used I recover the expense pretty quickly.
 
#60 ·
Hayduke said:
Curious if you figure in the ownership cost of the excavator into every billable hour, regardless of whether the excavator is on the job?
I know my total general overhead which gets factored into every billable hour, but I exclude tools that cost over roughly $1,000.
Those get factored into a job by job basis. For example, every paver job gets an additional cost added on for compactor, cut off saw, demo hammer etc. I also factor in a delivery charge and hourly rate for my skid steer. So some of these tools I do not recover cost on the job unless they get used.
This may seem a little dicey if a tool doesn't get used much in the year ( my $3,000 compactor might get 50 hours a year), but when those tools do get used I recover the expense pretty quickly.
Click to expand...
We do both if the equipment is over $10,000 in cost.
 
41 - 60 of 132 Posts
About this Discussion
131 Replies
34 Participants
Last post:
Hayduke
Lawn Care Forum
posts
7.2M
members
230K
Since
1999
A forum community dedicated to lawn care and landscaping professionals and enthusiasts. Come join the discussion about performance, modifications, classifieds, troubleshooting, maintenance, and more!
Full Forum Listing
Explore Our Forums
Lawn Mowing Pesticide & Herbicide Application 🔧 Mechanic and Repair Business Operations Lawn Mowing Equipment