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Raising prices

Discussion in 'Lawn Mowing' started by Lazer Cut, Sep 23, 2009.

  1. THC

    THC LawnSite Silver Member
    Messages: 2,020

    There is NOTHING wrong with that. You better watch you don't read too much into the threads here with people saying they don't touch anything for less then $35 because you could lose half your customers if you take advice like that.

    Take a look at these guys they have over 2000 customers and are too successful to post here anymore.:laugh:

  2. Lazer Cut

    Lazer Cut LawnSite Senior Member
    Messages: 906

    true true... i am also looking for business advice so it is helping me in that aspect too.
  3. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    Next year I think you can breathe a sigh of relief but don't...

    I say please do NOT make the mistake of assuming it's over.
    And I'm not trying to scare you or anything, but it's a part of business that, even thou it lets
    up sometimes but it never really ends...

    What I'm saying is you keep staying on top of it or the expense account will run away from you,
    and certainly you can rest in between the worst of it some but don't let up too long.
    The fact that you already live frugally, this I find critical, our cost of living is PART of our cost of doing business, so thumbs up.

    So continue to live frugally, and keep finding ways to do it for even less than before, and so on...
    For starters, by next year, even now prices here and there, you have to look but you can find
    certain things on sale and I'm talking deep discounts.
    This trend is going to continue for some time to come, the only thing that changes is WHAT goes on sale, where, and when.
    So start stocking up on parts when you can, like when you find stuff on sale, stock up some on that.
    It can be parts for the business, or things you need for the house, or just to live life.
    Try and remember what you bought, where, and how much you paid for it (this eventually turns into knowing your cost).
    Yes sir, how I do things, you just keep on going that exact same way and don't look back.

    Last edited: Sep 23, 2009
  4. whoopassonthebluegrass

    whoopassonthebluegrass LawnSite Platinum Member
    Messages: 4,305

    Talking costs can be so arbitrary. There are guys on here that are happy if they make $20k a year after expenses. There are guys living at home. There are guys whose wife's do the real breadwinning. There are guys who do this as a second job.

    It all depends on what YOU want to achieve. I can tell you this much, though. The $1/minute rule will never, no never, not EVER get you well off. You can SURVIVE on that (maybe), but you can't thrive on it. Not with the cost of equipment, fuel, etc - in addition to the reality that you have no retirement package/401K, no health insurance, no life insurance, etc.

    All that being said, charging your existing clients more for mowing is like raising the price for a haircut. The receiving end is simply gonna look at you and say, "well you're just doing the same thing as you were before, right?"

    You can price creep a couple bucks a year, but the thing I found is that you need to find new/better clients and let the starter clients (that helped you get on your way) fall by the wayside. That's just the reality of it. There's nothing sophisticated about mowing, and you can't perform some magic that others aren't able to do cheaper. Thus, unless you're one heckuva salesman, you're not worth the extra dough. That's the mowing biz.

    Get out there and find those more lucrative accounts, and put the crap accounts in order as to which ones you will cut out of your schedule first.
  5. willretire@40

    willretire@40 LawnSite Bronze Member
    from VA
    Messages: 1,390

  6. i agree with whoopass.....
  7. delphied

    delphied LawnSite Silver Member
    Messages: 2,067

    I wish the goof balls in my area would figure out their mistake in pricing like you have. I wouldnt sell the Proline if I were you. Its a good backup.
  8. Lazer Cut

    Lazer Cut LawnSite Senior Member
    Messages: 906

    thanks guys for all the replies... topsites and whoopass thanks for the incite on things along with all the others on this thread... ya i believe I may keep my proline... it's a good looking, good cutting, great runnin mower. Thanks guys for all the responses. Any others feel free to comment. I have been starting to "professionalize" my business as i call it in order to move into the high price neighborhoods. I do not look unprofessional but I bought t-shirts for remainder of this year and for next... something about working in good looking jeans, boots and a matching t-shirt for your company makes it look better in my eyes and I realized people perceive me different. When I showed up in my jeans boots and just a t it was like I was just that one guy with a mower that was a dime a dozen. Looking more professional makes you stand out a little more even though we all know the cut throat world of lawn care. Professional looking or not... still cut throat.

    Thanks guys,
  9. E.L.Co

    E.L.Co LawnSite Member
    from Texas
    Messages: 186

    i had the same dilemma when i was younger, but even then my 25 dollar lawns took me 30 minutes lol some people dont want quality they just want it lower than before you came. So anyways i fired quite a few accounts last year and told them i could no longer turn a profit at the current price and that i love working for them but i cant work for free i hope you understand. Some will call jonny down the street or pedro froms craigslist but you no longer have an un profitable burden so who cares. i had my first commercial install and they were paying me 1125 a month and i got3400 i think but running the numbers i had spent 2700 to do it!!!! so to hell with crap customers because one quality one will make you more money [profit] than 10 stingy assholes. make since? you could gain 10 customers at your current rates but when you go out of business because you dont even have enough cash to pay taxes youll thank me. charge what YOU HAVE TO to make a profit and screw the rest, you cant work for free. and also i will add that when i go bid and i say 35 and they say how bout 30 ill tell them mam/sir the price is 35 because thats what i can turn a profit from...present a quality service and a price, you will get the ole "thats to much we will call jonny" lol but still smile let them keep the bid and say thank you for considering and chances are they will call you back. people will screw you only as much as you will bend over its human nature! dont bend over and you will find that they didnt give a crap about 5 bucks they just wanted to see if you could bend over for them! did this rant/speech help????
  10. Lazer Cut

    Lazer Cut LawnSite Senior Member
    Messages: 906

    haha yes it actually did... one of my customers is a Realtor... he was buying a house and she was his realtor. He told me that she was talking about her lawn care guy cause he does it also and that she felt as though i should be getting at least $30 or even $35!! She's one of my $25 customers... so either next year they pay the $35 that the property warrants or I am done with that one.

    Thanks guys for all the advice... I am currently trying to pick up customers of higher pay. So far I have had 9 people at 30-60! I cant wait to get more... I hope these day care centers sign with me... I have two of them and they pay $50 a cut and they do not take long at all... If this other day care signs with me it'll be total of 7 commercial properties paying me so much more than the 10 $25 yards.

    Thanks for the advice guys. Any others can comment as well. You guys are helping me out a whole lot!!

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