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Mid-Season Price HIKE! (Advice please?)

Discussion in 'Business Operations' started by Tyler7692, Sep 3, 2007.

  1. Tyler7692

    Tyler7692 LawnSite Bronze Member
    Messages: 1,086

    Hey guys. This is my first year (Not really, next year will be the first year with advertisement, ect... I just picked up 15 residentials by word of mouth this year.)

    Anyway, I majorly underbid this small business that I mow (Its a bar). I told the guy I'd do it for $25. (This was before I knew a damn thing about pricing). Its all open mowing probably about 3/4 of an acre altogether maybe a little less. I run a 52 Bobcat ztr on it.

    Anyway, I was going to send a professional letter to the business owner (I also used to mow his house before he moved to condo) saying that we now have a $40 minimum on commercial accounts ( I can service this property in 30 minutes) I will also say the we now include pick up and removal of trash and debris from turf areas and landscape beds (There aren't any beds). The owner doesn't give a **** what the place looks like. It has two foot tall weeds growing everywhere out of the cracks in the parking lot and the building could use some fixer-upper work and paint. Anyhow, this is in no contract or service agreement or anything. Just verbal.. Also, I found out after I got the job that the last guy charged $35.

    What can I do? If I lose the account, screw it. Its only 25 bucks.

    I was possibly going to try to upsell this guy and see if he wants us to round-up the parking lot and get rid of the weeds. (I will sub it out to a friend of mine on the chemical side).
  2. Tyler7692

    Tyler7692 LawnSite Bronze Member
    Messages: 1,086

    Nobody has ever done this?
  3. carcrz

    carcrz LawnSite Silver Member
    Messages: 2,085

    You answered your own question - "What can I do? If I lose the account, screw it. Its only 25 bucks." Might as well send out the letter.
  4. J Hisch

    J Hisch LawnSite Senior Member
    Messages: 952

    when you rasie prices you have to be ready to do it for no less. If you are willing to do it for less then why raise the price.
  5. All_Toro_4ME

    All_Toro_4ME LawnSite Bronze Member
    Messages: 1,578

    3/4 of an acre for $25.00? sounds like lowballing to me...
  6. Tyler7692

    Tyler7692 LawnSite Bronze Member
    Messages: 1,086

    Its wide open grass. All mowing, zero trimming or edging. (Basicly just a field)

    I completely underestimated the size of the field when I first looked at it. Seemed small til I got on the mower.

    Anyway, yeah. $40 is new minimum for this property.
  7. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    You can send the letter for reasons of gp because you got nothing left to lose, but once a job is severely underpriced it's been my experience that it's a done deal... You might can get away with 30 but that's all the same problem, he'll never go for 40, you already said he don't give a rat, that about sums it up.

    Sorry for the bad news man, but send the letter if you like, it won't hurt nothing other than open the door for you to skedaddle outta there before you lose your tail even worse. I'd skip the bs about the minimum thou, be honest, tell the truth, you underbidded and it needs to be 40 or you're afraid your services can not continue at this time and you look forward to hearing from him, then send it off.

    If he does go for it, I'd love to hear it.
    Don't feel bad, been there, done that, and more than a few times. :laugh:

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