Keeping up with competitor pricing

TPendagast

LawnSite Fanatic
Seems like the job is relevant to trimming and travel
Most ztrs can knock out 4 aces an hour
So if you were charging $100 an hour for your Mower
2 aces would still be $50

then let’s say you drive there
That’s 30 minutes at $60 an hour
So there is $15
And trimming blowing ? i don’t know but let’s say an hour ?
At $60
That could be $115

or trimming blowing could be 20 minutes And only $95
Depends on the property
 
OP
Chvysb350

Chvysb350

LawnSite Member
You are assuming they are tell you the truth . If you called me cold with this questioning ? I would think you was just fishing to get my rates . Yep I would say the same thing . " Way to little for me ,cant do it for anywhere near that price " click . After 5 years you should have this down by now . And I think you do . You know your expenses . Your making $$ ? Is it enough ? If yes . don't worry what others are "claiming " they make .
You are correct about the cold calling and only part of my question is developed from that experience. However, I have a great relationship with all of my clients. As I get to know them they start telling me stories about the guys that used to mow for them. I keep running into folks that have been paying double or more than what I charge. $80 per hour is what I base my estimates off of. I am not saying that the other companies are straight out charging $160 an hour, but they are charging $300-$360 for a property that takes me an hour and a half to mow. It is blowing my mind and it isn't just one instance. I keep running into the same story. Otherwise I would just think that there is one company that is just out of line. Instead I am starting to think that I am out of line in pricing.
 
OP
Chvysb350

Chvysb350

LawnSite Member
Seems like the job is relevant to trimming and travel
Most ztrs can knock out 4 aces an hour
So if you were charging $100 an hour for your Mower
2 aces would still be $50

then let’s say you drive there
That’s 30 minutes at $60 an hour
So there is $15
And trimming blowing ? i don’t know but let’s say an hour ?
At $60
That could be $115

or trimming blowing could be 20 minutes And only $95
Depends on the property
I will say that where I am mowing, it is tough to get 2 acres an hour out of a ZTR. Rough ground, native whispy grasses, lots of trees. An average 1 acre with house is 1.5 hours with mowing, trimming, edging and blowing. I have been charging $125 for that acre.
I run a 61" Scag. One man show. Usually have to double pass because the grass is bluestem and buffalo grass.
 
OP
Chvysb350

Chvysb350

LawnSite Member
That is what I am thinking. I am just trying to figure out what others on here think about it.
It is kinda tough. Our market doesn't match with many other markets. We have had a crazy influx of folks from California. Our housing has gotten pretty pricey. 10 yrs ago was $700 for a studio apartment, now we are at $1300 for the same place. Top that with the national inflation and you get a hard market to price. Not to mention that I started into this industry without a clue. Folks here are very private about their rates. I don't know why, it would benefit all if the newbies knew what to charge. There would still be price competition but it would become more about offering the best service and running efficiently.
 

Youngandfree

LawnSite Fanatic
Location
VA
That is what I am thinking. I am just trying to figure out what others on here think about it.
It is kinda tough. Our market doesn't match with many other markets. We have had a crazy influx of folks from California. Our housing has gotten pretty pricey. 10 yrs ago was $700 for a studio apartment, now we are at $1300 for the same place. Top that with the national inflation and you get a hard market to price. Not to mention that I started into this industry without a clue. Folks here are very private about their rates. I don't know why, it would benefit all if the newbies knew what to charge. There would still be price competition but it would become more about offering the best service and running efficiently.
What people charge in other markets doesn't really matter does it if your market isn't like others as you say. Your main market research is your area, not everywhere else.

Don't overthink it. Raise your prices for next year across the board. Any new clients especially. Maybe raise existing ones some, but not as much as new clients.

EVERYTHING is more expensive. Gas has gone up how much this season alone?
 

Tn Turf

LawnSite Senior Member
Location
Spring Hill, TN
Raise your prices until customers say no!
Then you will know what the rates are for your area.

^ this. If you're getting lots of "yes's" then you're prices are too cheap. My rule of thumb starting out was 60% yes / 40% no. Now my focus is 20% yes / 80% no. Roughly $7.50 per mowing minute or $500/hr. I hate trimming bushes and putting down mulch anymore because I make significantly more sitting on a mower.
 

cool breeze

LawnSite Senior Member
^ this. If you're getting lots of "yes's" then you're prices are too cheap. My rule of thumb starting out was 60% yes / 40% no. Now my focus is 20% yes / 80% no. Roughly $7.50 per mowing minute or $500/hr. I hate trimming bushes and putting down mulch anymore because I make significantly more sitting on a mower.


Is this rate per man or per crew?
 

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