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Jaw Dropping Rates!!!

Discussion in 'Starting a Lawn Care Business' started by doitforjohnny, Aug 16, 2007.

  1. martinfan06

    martinfan06 LawnSite Senior Member
    Messages: 631

    Why were your prices to high?? If your mad business skills had already did the numbers on what YOUR biz needed to turn a profit then thats what you need to make, or adjust how you run YOUR biz. Look out illeagles here comes johnny.
  2. doitforjohnny

    doitforjohnny LawnSite Member
    Messages: 70

    Sorry to ruffle your feathers Martin. Like I said before I know my numbers. I know what I need to charge to make a profit. Who doesn't?
    I was just little higher than my competition in the areas that I wanted to work in.
    Good biz skills are figuring out what your competition is charging, making adjustments, and offering your market something different than the rest and still turning a profit. I did that and you are saying that that is wrong? What should I have done? This is a new business venture for me. Do you think anyone starting a new lawn care business should automatically know what to what others are charging? Please Martin take a moment to enlighten me, not criticize me.

  3. Big Bad Bob

    Big Bad Bob LawnSite Bronze Member
    from zone 5
    Messages: 1,074

    Then why were you so surprised when you found out the, so called, "going rate"?

    How many companies did you call and what did you figure your rate should be? You said in your first post, $35.00 per lawn. Was that per mow or per month?
  4. doitforjohnny

    doitforjohnny LawnSite Member
    Messages: 70

    I wasn't the only one surprised at the ""going rate"" out here in my area. Others here were surprised also. I wanted to charge 35.00 a service. People in my area are charging 7.50 to 20.00 a service. This rate doesn't surprise YOU? I have decided to charge 20-25.00 a service. 80-100.00 weekly. 40.00 bi-weekly. I don't know why you and the last LCO are having a hard time figuring out why I needed to research what my competition is charging. I would love to charge 45 a lawn but that aint gonna happen out here. Do I give up? Heck no!

    My expenses are low enough still to turn a profit with what I am charging. That stated, there are still those rare people in that golden market, who want to spend a little more for quality work. They got the money and they want a high quality, presentable and reliable company to tend to their yards. I just have to find them. There is also commercial acccounts which I am presently attaining and marketing towards.

    Today I landed another commercial account which has made me very happy.

  5. mythntr

    mythntr LawnSite Member
    Messages: 38

    the only thing i can think of is that there is a large population of illegals willing to work for absolutly peanuts. Otherwise i cant imagine how he can make it legaly
  6. doitforjohnny

    doitforjohnny LawnSite Member
    Messages: 70

    Well you hit it right on the nail! or should I say sprinkler?

  7. doitforjohnny

    doitforjohnny LawnSite Member
    Messages: 70

    Though the guy that I spoke with spoke great English and said that he had like 5 crews. These Illegals don't have crews. I think that his prices and everyone elses are low because they have to compete with these guys.
  8. mythntr

    mythntr LawnSite Member
    Messages: 38

    i have heard about this problem farther south. Fortunatly, there are very few illegals in Montana. I feel for you
  9. mythntr

    mythntr LawnSite Member
    Messages: 38

    I wonder what the profit margin is for a 750 lawn
  10. doitforjohnny

    doitforjohnny LawnSite Member
    Messages: 70

    Well these guys live together and pay low rent. They don't have car payments because they can't buy a car legally anyways. They use hand me down equipment. So basically they have no expenses except for gas.
    They make a huge profit! They need to make like 0.3 cents a lawn to cover their expenses! :hammerhead:

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