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$45 Aerations?

Discussion in 'Lawn Mowing' started by lbmd1, Feb 17, 2002.

  1. lbmd1

    lbmd1 LawnSite Senior Member
    Messages: 462

    Got my new issue of Lawn & Landscape yesterday. Noticed an article on a company called Progreen. He states his $45 aeration fee is rock bottom compared to his competitors' $90, but he's not losing out. He does it to get new business for his lawn care side of biz. I know some of you here also get low prices for aeration but $45????? So would you consider this guy a lowballer? How does one make a profit after depreciating a $3-4,000 machine, drive time, labor, gas, and all other overhead costs in running a legit biz for $45? Also states he made $280,000 in his first year. Wow, zero to $280k in 12 months, may we all learn from this guy using his lowballing techniques. Once again, profit is the key to success, not sales. It says he performed 2100 aerations at $45 a pop equaling $94,500. How much of that was profit? Taxes paid on the net as well. And was it worth 2100 trips with aerators, trucks, laborers, gas, overhead costs, etc..? Maybe next we'll be seeing Lawnboy on the cover with his $21.95 unlimited monthly mowing scheme next. I don't know, just spouting off on why some guys who run big and legit businesses have to resort to lowballing in order to keep gaining market share for the sake of being a big fish in a small pond. Rather work smarter than harder and do 1050 aerations at the current $95 rate and make the same profit, and at the same time, not degrading pricing structures for services that all LCO's could be happy with.

  2. Um VOLUME!!!

    Suck the new customers in, get them on your programs and whala...

    UP SELLING!!!!!

    Take some marketing courses.

    BTW that's for new customers only.
  3. Administrator

    Administrator Administrator
    Messages: 865

    If the right equipment is used you could aerate an average size residential lawn in a very short amount of time.

    Word has it that some of thoze ZTR attachments work great ? ;)
  4. turfnerd

    turfnerd LawnSite Member
    Messages: 17

    thats the story of economics. if you can't find a way to something faster, and cheaper you go out out of business. Its called the McDonaldsization theory.
  5. lbmd1

    lbmd1 LawnSite Senior Member
    Messages: 462


    Don't need any marketing courses, used to be a Sams Club manager (Wal-Mart). Am well aware of loss leaders. Making things up on volume is generally a desperate measure used by firms that are losing money elsewhere in business in an attempt to save one's A**. As for Wal Mart, there pocket is deeply lined for loss for quite some time until competitors are forced out by there pricing techniques, only to be raised after they have been forced to close. My point though was this, loss leadering aerations to get lawn maintenance accounts? Why is it that most lawn maintenance guys want to leave the biz to perform aerations and fertilization businesses. Could it be there's not alot of profit in maintenance and there is in fert and aerations? Once you have established accounts that will pay you posted price for aerations at $90-$125 (vs $45) why would you want to charge less? Marketing to get lawn maintenance accounts, then charging for profitable side jobs such as ferts, dethatchings, aerations, pruning, etc.. would be more like it from my point of view. Not loss leadering my profit centers.
  6. VLM

    VLM LawnSite Member
    Messages: 189

    I hope they do a follow up article on where this joker is 12 mos from now!
  7. plow kid

    plow kid Banned
    Messages: 516

    I have seen people with 18-19" Ryan aerators knock out a 10m lawn in less then 20 minnutes single pass, nobody double aerates up here, I have a $60 minimum and rent a aerator for 2 days and between me and a buddy we can knock out 30 or so in 2 days. ~NaTe
  8. KirbysLawn

    KirbysLawn Millenium Member
    Messages: 3,485

    $45 per what? I have a bunch of large lawn I would love to sub out for $45 a lawn.
  9. Evan528

    Evan528 LawnSite Silver Member
    Messages: 2,144

    My Jaw dropped when I read this Article today! Cant amagine there attracting very good quality concerned customers with these tactics.:confused:
  10. I'm going to pursume they are doing 10,000 sq/ft or less for $45 and making $22.50 out of it, and with all the up sell stuff that can go along with it you can make some serious jack.


    Off set the prices to make up for it in the up sales.

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