[newbomb]

I recently acquired a new customer in an upscale neighborhood. Houses are about $700k on 1/3 + acre lots. I charge her $40.00 per cut. It takes me just under an hour to cut trim and edge the walks alone, with a helper 35 minutes. After the 3rd or 4th visit, the lady sees my work is good and I'm reliable and she says, "You should put out fliers with a price for each lawn on them. Your price is very reasonable and I'm sure you would get more work."

Now I would like more work here and I am making a good profit with the rates I charge. When I gave this lady a price, it was without knowlege of my competitions prices. (actually I still don't know exactly what they charge). Also I run good equipment and carry insurance etc..

Would you call it lowballing? I stiil make close to a dollar a minute. I don't want to ruin a good thing by undercutting others. We all know how hard it can be to find good paying accounts. On the other hand it still pays great AND the lawns are pleasant to mow.

Your thoughts please.

 

[Thirdpete]

if you're grossing a dollar a minute, and you're legit, then what's the problem?

you deserve a pat on the back for figuring out how to keep costs down and still make money.

 

[Grounds Control]

if your work is as good or better, charge market rate and make more profit.

 

[KenH]

if you're grossing a dollar a minute, and you're legit, then what's the problem?

It doesnt matter what you gross, it matters what you net. I could gross 2$ per minute, but have 3$ per minute in expenses.....I wouldnt be doing too well.