Question 2: Competitive Pricing

Discussion in 'Pesticide & Herbicide Application' started by eruuska, Mar 14, 2005.

  1. eruuska

    eruuska LawnSite Senior Member
    Messages: 454

    This is Question Two for the day.

    I promised myself that I'd never post a "What should I charge?" type of question, but this one comes close, but I think it misses the mark. :cool:

    I have no experience pricing fert applications, but from what I've gleaned from I think I know enough to be dangerous.

    Basically I put together a formula that will cost the customer $30 for the first 3k sq ft, plus $4 for each additional 1k sq ft. I priced a property today that was about 18k sq ft of turf, so this formula yielded a price of $90 per application. She seemed like a price shopper, so I'll likely not get the job (I'm okay with that), but she did let it slip that TGCL quoted her $75, which would jibe with a formula like $30 for the first 3k, plus $3 for each additional 1k.

    I don't want to get into a p!ssing contest with anyone, least of all TGCL, but I want to make sure my prices are in the ballpark.

    Any ideas? Any help? Anyone? Anyone? (Think Ben Stein from Ferris Beuller's Day Off)
  2. green with envy

    green with envy LawnSite Member
    Messages: 219

    If you compete with TGCL on price you probably will not be in business long.
    You have to know what you need to make a profit and stick with that. Make a mark for yourself by selling quality and service.

    Good luck,

  3. ns400r

    ns400r LawnSite Member
    Messages: 110

    One reason why this question is so hard to answer is because this site has people from all over the country and my prices in northern calif :p will be drasticly different from someone in Arkansas.

    that being said, I would ask you, what does it matter that your prices are in the same ballpark with TG or anyone else for that matter if your not making money with those prices.

    The year before I left corporate lawn care to start my own business, I sat down with my finical adviser to discuss how to run a business, first thing he wanted to know is what I was gonna charge, and how did I come to those prices, well I just had a copy of the price sheet from the last few companies I worked for and I was just gonna copy their formula and price break downs.

    Well this didn't go well with him, He made me get a computer, and a budget program and do a budget for the first 2 years in business, and use that as my guide for my prices, good thing I did cause if I had kept those prices from the other companies I wouldn't have made a dime, really lost money and most likely not be here today.

    So long story short, you gotta come up with your own prices that allow you to make money, and if its alot higher then the people your competing with, then you gotta be able to sell yourself and your program and your experience to get the customer to realize they are better off spending more to hire you then less for the next guy.

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