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Should I re-evaluate my prices?

9K views 48 replies 22 participants last post by  Eric E 
#1 Ā·
I found this on a customers lawn this morning while cleaning up and i'm thinking that I cant come near these prices.

Times are tuff but damn $15.00 per cut on a monthly or $21.25 per cut for full service.

The cheapest property i do is open lot @ $35 and it takes me 20min to do and its family:confused:

I gues if you have 100 accounts like these you might be ok, the only good thing i see is that it gets your foot in the door for other landscape renovations with those customers.

Has anyone else had to drop there prices down this low because of others?

Oh and thanks I'm new here and I luve this site an overwhelming amount of info on this site.

 
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#2 Ā·
I never worry about what others charge. If people want to work for that, that's their problem. The only 2 accounts that I have under $100/mo. Are 2 backyards with 250-500 sq ft of turf and a little bit of ornamentals. They take about 15 min each including spraying for weeds and light trimming. Other than that, everything is way above $100/mo.
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#5 Ā·
Not sure if it's $15/cut. The ad says $60/month, but that could be visits every other week for $30/cut...For clients looking for cheap, cheap, cheap, you really think they care if the lawn gets cut every week? Nope - just often enough to keep the city from issuing a citation for an unkept yard...
 
#6 Ā· (Edited)
Around here its even worse than that. New guy in my community paper. The "Lawn Hero". Claims to be a CPO and is advertising full pest service. No license number on his ad or his cheesy magnetic door sign on his Durango. Offering 200.00 off sod installs that he will warranty for life if you use his spray service. 45.00 WEEKLY lawn service. This clown is out of business already and doesn't even know it. :usflag:

And no, volume is not the solution for these prices. You just tear up man, machine and contribute the overall decline of industry standards.
 
#7 Ā·
I don't have a issue with that add, it is a good add, I suggest all of you RE-read it again, carefully, 60 a month is the starting lowest.

The only issue i have is.... the stupid dude littered their lawn with a advertisement, If it was my house I would have called them at the number on the flyer and told them to send someone over to immediately pick up your litter that was intentionally thrown on my property. I understand the need to advertise but your not going to gain the business of caring for my property if you start off with littering it. At minimum show some respect for my property and your company by calling me on the phone, knock on my door or even better mail me that flyer. Just don't be a slease and drive by tossing this crap onto my property
 
#8 Ā·
I never worry about what others charge. If people want to work for that, that's their problem. The only 2 accounts that I have under $100/mo. Are 2 backyards with 250-500 sq ft of turf and a little bit of ornamentals. They take about 15 min each including spraying for weeds and light trimming. Other than that, everything is way above $100/mo.
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Right there!
 
#9 Ā·
..

Guys

Mowing prices are about the same now as they were 30 years ago. IMHO Two factors have caused this. One is the Down economy that has every unemployed fool cutting grass. second is the advancement in commercial mowers to very fast Z turns and power hand tools like weed eaters. Yes I am old enough to remember hand shears.

If you look in the archives there is a reoccurring theme posted here on Lawnsite. That mowing is the LOST LEADER FOR UPSELLS. Back when I had the Full Service Big Show (not really that big) Mowing was a break even situation. It did pay a big proportion of the Over Head but not all of it. But it was the reoccurring Fert & Squirt and Shrub Trimming that put food on the table. Irrigation repairs and landscape installs paid for the Kids college and cars.



..
 
#10 Ā·
Ric hit the nail on the head: Mowing hardly ever brings in a profit. It's weed control, fert, landscaping, and irrigation that pays well. If your worried about all these hacks just mowing, then your wasting your time. If they are not offering anything but basic maintenance, they are a minimal threat and will be broke/out of buisness before you know it. With every unemployed person in the country trying to mow grass, the "low baller" will always be a factor.
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#11 Ā·
..

Guys

Mowing prices are about the same now as they were 30 years ago. IMHO Two factors have caused this. One is the Down economy that has every unemployed fool cutting grass. second is the advancement in commercial mowers to very fast Z turns and power hand tools like weed eaters. Yes I am old enough to remember hand shears.

If you look in the archives there is a reoccurring theme posted here on Lawnsite. That mowing is the LOST LEADER FOR UPSELLS. Back when I had the Full Service Big Show (not really that big) Mowing was a break even situation. It did pay a big proportion of the Over Head but not all of it. But it was the reoccurring Fert & Squirt and Shrub Trimming that put food on the table. Irrigation repairs and landscape installs paid for the Kids college and cars.

..
This is why I want to stay small and do say 15-20 estates with 2 helpers max. My ultimate goal is to get an estate management gig where I work at someone's estate 3-5 days/week and get paid a yearly salary. Where they pay for all equipment, materials, etc. And in addition have a couple guys run my 15-20 estates.
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#12 Ā·
This is why I want to stay small and do say 15-20 estates with 2 helpers max. My ultimate goal is to get an estate management gig where I work at someone's estate 3-5 days/week and get paid a yearly salary. Where they pay for all equipment, materials, etc. And in addition have a couple guys run my 15-20 estates.
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Diamond

The Original Poster ask if he should re evaluate his prices. I think it is more like re evaluate his Business plan. In your case you are looking for the security of a Real Job working for the Man and also running a business on the side. Firemen are famous for that.

I see nothing wrong with the $ 15 by the cut business IF YOU HAVE YOUR DUCKS IN A ROW. A guy in my town only does $ 15.00 By the Cut and has for well over 20 years. But he single handed does 30 everyday day before noon. His business name is TLC and it doesn't stand for Tender Loving Care. It is Terry's Lawn Care and Terry doesn't take any care in cutting any thing. He just laughs all the way to the bank. At one time I turned my nose up at Terry's Business style. But the greenest thing in the green industry is the Green back dollar. Terry has found his green and who am I to knock it. Speaking of lowball operation Check Out JUSTMOWING.COM. I will admit his price have greatly increase from a few years ago when he posted on Lawnsite. But he build a customer base on lowball pricing then raised his prices to what the Market will bare. Of course he is in one to largest Markets with a very high disposable income.

If you are going to run lowball operation the trick is not say it is a fine quality service. Admit you you are a Blow & Go and laugh all the way to the bank.
 
#13 Ā·
I do just a few more than that, but I won't call them estates. I'm not going to take on more just to add volume.

What Ric said is shockingly accurate for many areas. I run across people mowing every day that cut for the same sized lawns for the same monthly price I got in 1987. And the late 1990's price scale seems to be the "premium" price. Bottom line, the people just have to be satisfied with your work, and actually like you in order to get a premium over that.
 
#14 Ā·
..

If you look in the archives there is a reoccurring theme posted here on Lawnsite. That mowing is the LOST LEADER FOR UPSELLS. Back when I had the Full Service Big Show (not really that big) Mowing was a break even situation. It did pay a big proportion of the Over Head but not all of it. But it was the reoccurring Fert & Squirt and Shrub Trimming that put food on the table. Irrigation repairs and landscape installs paid for the Kids college and cars.

..
Bingo! Cutting grass pays the bills, add on services are the meat & gravy! All of the things Ric mentioned and why not pressure cleaning, rust removal, installing and maintaining rust injection systems, etc. The work & the money is out there, be creative and ask for it.

As an aside, advertising media has not brought a big enough return for me to warrant the expense. I get more calls off of my truck & trailer signs than I ever did advertising. Do a great job and customers will refer friends and neighbors, do a great job and they will call you. It's an easy entry business and every gypsie anywhere in the country, who has failed at everything else throws a mower on the back of his truck, moves to Florida and cuts grass. Set yourself apart as a professional!
 
#15 Ā·
Diamond

The Original Poster ask if he should re evaluate his prices. I think it is more like re evaluate his Business plan. In your case you are looking for the security of a Real Job working for the Man and also running a business on the side. Firemen are famous for that.

I see nothing wrong with the $ 15 by the cut business IF YOU HAVE YOUR DUCKS IN A ROW. A guy in my town only does $ 15.00 By the Cut and has for well over 20 years. But he single handed does 30 everyday day before noon. His business name is TLC and it doesn't stand for Tender Loving Care. It is Terry's Lawn Care and Terry doesn't take any care in cutting any thing. He just laughs all the way to the bank. At one time I turned my nose up at Terry's Business style. But the greenest thing in the green industry is the Green back dollar. Terry has found his green and who am I to knock it. Speaking of lowball operation Check Out JUSTMOWING.COM. I will admit his price have greatly increase from a few years ago when he posted on Lawnsite. But he build a customer base on lowball pricing then raised his prices to what the Market will bare. Of course he is in one to largest Markets with a very high disposable income.

If you are going to run lowball operation the trick is not say it is a fine quality service. Admit you you are a Blow & Go and laugh all the way to the bank.
Ric

Nothing wrong with mow and go, just not my cup of tea. I didn't get a Hort degree and continue to take seminars to mow and go.

Yup, that is my goal. I overall want to stay small. IMO, I think guys try and take everything bc they get greedy. I don't want a boatload of employees or a boatload of customers. 15-20 accounts priced at 1-K+/mo. is just enough especially when you throw in extras. This guy Terry is smart in the sense that he chose one path and kept on it. I think when you mix the mow and go with the full maintenance, that's when problems arise. Maybe not, but it seems that one or the other is the way to go.
 
#16 Ā·
We are going to advertise a SSTARTING AT $29.99 month across our state come spring and we are looking at great predictions. I see nothing wrong with $30 a cut.
There is more money in high production mowing then one may think you just can not mix high end and low quality. but miss jones is 80 she dont care if the edge gets long over the month
 
#18 Ā·
Ric

Nothing wrong with mow and go, just not my cup of tea. I didn't get a Hort degree and continue to take seminars to mow and go.

Yup, that is my goal. I overall want to stay small. IMO, I think guys try and take everything bc they get greedy. I don't want a boatload of employees or a boatload of customers. 15-20 accounts priced at 1-K+/mo. is just enough especially when you throw in extras. This guy Terry is smart in the sense that he chose one path and kept on it. I think when you mix the mow and go with the full maintenance, that's when problems arise. Maybe not, but it seems that one or the other is the way to go.
Chris

Not my cup of tea either but I threw it out there as food for thought. I feel low volume high quality at a Reasonable price builds Customer Loyalty.

Talking with a CPO friend just today about Business plans I explained I can not afford to advertise like the Big Box Stores. So my advertising expense percent is put back into better Fertilizer that show a stronger response. Now my work is my advertisement and I get better word of mouth because of it.

Now the whole point of Both this and my Low Ball post is to get people thinking about their Business PLAN. I capitalized PLAN because with out a Plan or direction you are only spinning your wheels.

..
 
#19 Ā·
Chris

Not my cup of tea either but I threw it out there as food for thought. I feel low volume high quality at a Reasonable price builds Customer Loyalty.

Talking with a CPO friend just today about Business plans I explained I can not afford to advertise like the Big Box Stores. So my advertising expense percent is put back into better Fertilizer that show a stronger response. Now my work is my advertisement and I get better word of mouth because of it.

Now the whole point of Both this and my Low Ball post is to get people thinking about their Business PLAN. I capitalized PLAN because with out a Plan or direction you are only spinning your wheels.

..
Ric I tried advertising too and in my experience it attracts cheapos and wackos. Word of mouth has been best for me. I like the low volume idea bc you have less headaches. High volume is for the lowballers.
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#20 Ā·
Low prices attract penny pinchers. They are not the clients I want. Most low ballers aren't insured or licensed. When they burn their clients, by screwing up, that low price will be a warning sign for those clients in the future. How many times have you heard " They just stopped showing up." They will fade. They are always present but can't compete when your company does the little things while your lawns look perfect. If something goes wrong with their health, their done!
 
#21 Ā·
Ric I tried advertising too and in my experience it attracts cheapos and wackos. Word of mouth has been best for me. I like the low volume idea bc you have less headaches. High volume is for the lowballers.
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I refuse to advertise. Even then, there are a significant number of calls I get that go no further than my initial meeting. I tell the prospective client that what I do is not for them.
 
#22 Ā·
This is why I want to stay small and do say 15-20 estates with 2 helpers max. My ultimate goal is to get an estate management gig where I work at someone's estate 3-5 days/week and get paid a yearly salary. Where they pay for all equipment, materials, etc. And in addition have a couple guys run my 15-20 estates.
Posted via Mobile Device
Diamond,
Most estate management jobs work 6-7 days a week in season, and will wear you down to the bone. 5 days in the summer, but will still take years off your life with the sun and heat. You wont have anything left in the tank to run your other crew.
 
#23 Ā·
Diamond,
Most estate management jobs work 6-7 days a week in season, and will wear you down to the bone. 5 days in the summer, but will still take years off your life with the sun and heat. You wont have anything left in the tank to run your other crew.
Hmmm, good points. Is that for just landscape or running everything at the property?
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#24 Ā·
I refuse to advertise. Even then, there are a significant number of calls I get that go no further than my initial meeting. I tell the prospective client that what I do is not for them.
Green

The short story is I turned down one A hole who went straight to the Country Club b1tching about me. Everyone Knew him and it was the most prductive advertisement I ever had. I am told it became the Joke of the Club.

..
 
#25 Ā·
Diamond,
Most estate management jobs work 6-7 days a week in season, and will wear you down to the bone. 5 days in the summer, but will still take years off your life with the sun and heat. You wont have anything left in the tank to run your other crew.
Yep Hope they don't have a greenhouse and expect fresh flowers in every room. When Dealing with people who have that much money, they can have some weird Ideas. You would actually be a Bragging Right or show piece as their personal horticulturist. Having lived and worked in Boca Grande, I can tell the Rich & Famous are a very snobbish group. They also lack the Every day common sense. They will beat up on the Pool boy for $ 5.00 a month and go to the club and celebrate with $ 200 bottle of vine. There seems to be a real big thing about Being the Jones and having people keep up to them.
 
#26 Ā·
I've determined that there is no perfect business model for me.

When I started out, like everyone else in the 80's, I was doing by-the-cuts. $12, $15, $20 each. Then they showed you the door in October and you didn't hear back until March. I decided there had to be a better way.

Then the smaller and medium year-rounds came. Way better way to do it. My goal was to have 100 of these with one helper. Then I decided, "hey, commercial is where it's at."

I never loaded up more than 30% on commercial, but after a few years I got tired of it. For the most part, if I was doing the work it meant I had been pretty close to the lowest price they got. That's a crappy feeling. I got tired of not being able to show off the work. I wanted nicer places with lots of detail work. Those jobs you could pull up and park the truck and not move it again for three hours.

They are nice. You can show off your work for sure. And you always get comments on how nice they look. That puts you under a lot of pressure not to let up. But like Ric said, the rich can be quirky. And I've had more well off people try to cheat me than your average folk. As the years rolled by I decided that making nice place look great was fun, but maintaining it for years was not. I would sit there trimming hedges doing the numbers in my head. Yeah, it was a big check, but it was probably paying less than the six small to medium residentials that I could have done in the same length of time. I realized how much I like those $100-150 monthly jobs.

Nowhere near the hedge and bed maintenance, but you need more of them to eat. You can't show off like you do on the big estates. But they don't come with the demands either. You have to move the truck and trailer around more, but they are closer together than the large places. And on a bad day, if you lose one or two, it's not like losing a big one.

So that's where I am now. Solidly in middle class subdivisions. No commercials, and only a few larger residentials. At least until I change my mind again.
 
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