Price Check

Discussion in 'Business Operations' started by meets1, Mar 7, 2006.

  1. meets1

    meets1 LawnSite Gold Member
    Messages: 3,858

    I have been thinking about this for a bit - is it true that where you ser your prices communicates to the market what you think of your work??

    Myself - yes and no. I see it as if my toro dealer has a great deal on an 05 mower that I am interested in I may actually trade/buy that mower. Is is service, brand, etc any cheaper cuz he is closing out on his old inventory? OR how about that chevy/dogde,ford truck that is slashed $1000's off to move the 05 model?

    If your willing to work for less, say instead of 30 / yard, go to 27.50, meet or beat the other LCO, gain a few more accounts, is your work less professional? I realize your net profit, gross profit, etc may be different for you but I think that if I can one more account in the hood were servicing - thats great. If I go and charge $32.50 but I start lossing accounts due to the 7% increase, my work doesn't suffer cuz of it, my work is still awesome, but I over priced myself out of the market.

    I do know some clients want that high end bill. They feel they paid more for better quality of service. I do serivce many of these people with 300K - 600K homes but my rates are no different for them than the 100K properties. The thing we get with the 300K and up - we can upsell alot of services that they don't want to do themselves. They want to (300K and up people) want to see neat appearance in our people, trucks, trailers, mowers etc. Not saying that everything is always new but kept in great shape.

    Just curious to your thoughts.
  2. iowa

    iowa LawnSite Senior Member
    from NW IA
    Messages: 305

    To me, its worth having less customers, but making just as much as if you had more customers at a lower price. The ones that pay the price without asking are the ones that will get you more work. Just my opinion.......
  3. drsogr

    drsogr LawnSite Bronze Member
    Messages: 1,275

    Thats so true. I love my customers who could care less how much things cost!
  4. cleancutccl

    cleancutccl LawnSite Senior Member
    Messages: 698

    Well said, go for the customers that want quality over price. You will save yourself many many headaches in the future. Then later, when the customer already knows your quality they won't question your prices for the work.
  5. iowa

    iowa LawnSite Senior Member
    from NW IA
    Messages: 305

    I have had that for so many snow removal customers this year. Most of them were new mowing customers last spring, and it took them a while to convince them quality over price. Now they are just like that, they know how well of work I do, and they don't even hesitate!

    On the second hand, I was at a commercial prop today talking with the owner. He is the new owner since October, when I was done with last years services already. All he was trying to was talk me down on my price. Dude, this is not a freaking negotiable deal. I already felt as though I might be slightly under, but its a nice commercial account to have, as everyone sees it, gets me more work, ect. ect.
  6. drsogr

    drsogr LawnSite Bronze Member
    Messages: 1,275

    I hate the commercial work. If you are a quality first company, you will make much better returns working in residential neighborhoods. I only advertise to residents. The only commercial work that I even do is the home owners business.

    I only do landscaping though, so its a little bit different ball game.

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    I don't think most homeowners think there is much of a quality difference from one LCO to the next. They tend to have a price in mind of what it should cost (for mowing) and if you come in close to that price they are fine with that. Hard to convince someone that it's worth it to pay you $5 more per week because your quality is better.

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