This is an ugly dang subject for me to even get into, especially since I have been 'stirred up' lately. I'm not so sure I should put my 2 cents in at all. But then again, if I don't, who will? And then I carry as much of the blame for not speaking out as the rest.
I've been at the job of running a business that provides quailty finished work and I've been at it a lot longer than you. I also see what goes on around me very clearly. So I can put up a whole big long list of reasons NOT to do this.
The best place I can think of to start from is to go off what Mac said and say, you are the one who is the b*tch every time in this sort of arrangement.... good place to build from... First of all, if you are submissive to their prices, who's the b*tch? You are from the get go.
Then you proceed to try and cut corners to make ends meet on the job. I see this everywhere I look all season. No big deal right? You are coming out somewhat on the job, feeling you are giving them what they are paing for right?
Well that may be the truth. But you are still the submissive one, bowing to their prices, and sacrificing your quality of work in order to meet that price without going in the hole. It's true you may retain many of them, simply because they do not care how it looks, so long as it's not a jungle, and even if it looks really shotty, they still might remain loyal and keep you slaving for them. Why? Because they are not so sure how hard it will be to find another dummy that is willing to deal with them an do their lawn for them for so little.
Meanwhile, have you ever stopped for a second to think about what this is doing to your business reputation to be associated with this type of work? No good customer willing to pay you for a quality job is going to seek you out if they associate you with that type of work. None of the neighboring accounts are going to want you either, unless at some point there has been a neighborly discussion where they laughed their azzes off about what a sucker you are... and these neighbors are coming to you seeking the same cheap labor and shotty work.
Not the kind of stuff you need your business associated with.... but you can sure get covered to your eyebrows in more crap jobs than any man can do.
The next thing is, you would not believe how neighbors hunt for things to gossip about, things about their neighbors they can complain about and so forth. Bad news travels fast. You just would not believe how often my customers and their neighbors approach me to make a small talk conversation about the neighbor with the trashy lawn, landscape, and/or service provider... and how they wish I could do it so they would quit bringing down the neighborhood. Believe me, if they discuss this with me, they discuss it with everyone they know and everyone like them. Nobody they know, do business with, work with or are related to will ever seek you.
In addition to this, there will be many of those penny pinchers who are picky control freaks, always complaining about something, always wanting something for nothing, and always trying to squeeze you for everything you're worth to be sure they feel they get more than their monies worth every week. Some of them you will be able to satisfy with your tactics, at a loss to you... and many you will not. Many will expect it to be flawless for $20.... and if it's not, you are history, and they are badmouthing you every chance they get, just because it is their nature.... an of course they will never bring up what they were paying you.
This sort of stuff will run you in the ground in the long run, because not only do you become a magnet for this type of customer, but one day you wake up in a nightmare, because this is the only class of client you can get.... not to mention the PITA factor involved in dealing with them week to week.
You post here like you have re-invented the wheel.... but this is nothing new. Actually it's common-place.... And some have learned to even take it a few steps further than you. Many on the local yocals come along behind me and do this very thing.... They lowball me to get the work, knowing full well they are going to milk it and cut every corner they can in order to come out....
Sometimes the customer learns they get what they pay for, and end up calling me back. Other times, the account is ruined for good, and they expect that pricing from now on. So they either live with the service for the price, or continously go through LCO's in the same price range on a regular basis.... and actually wonder why they can't find anyone who does an acceptable job.
Still yet, some others will do the mowing for whatever, even if it means a loss, so they have their foot in the door.... and then they RAPE them on billing for the extra services. People eventually get wise to this though. So they hire a guy to mow... who often comes in real low for reasons above.... and then one day he shows for a cut and finds the extras already performed.... and very likely they have turned the tables on both parties, playing them against each other, and playing them for fools. This has gotten bad enough that I have ran into several good accounts in the past few years and they have a strict policy that they do not use the same contractor for more than one task... and often the policy is to not tell you that up front... and other times it's the opposite to help insure they are weeding out the corner cutters.
Another variable of this is what happened to an account I serviced last year. Lowballer came in low on the whole contract, lawn, landscape, the works... blew me out of the water. So far this year, they have averaged 2 cuts, one whacking, and zero edgings per month.... and absolutely zero other services. The beds have stuff blown all in them and infestation grown up knee high because they haven't touched it....
Basically, it's all been done...
And most of it is a detriment to the industry...
It's no wonder my disclosure of my minimum fees end most of my estimate calls on the spot.
People expect cheap because this sort of crap out of control.
Seems the majority here think $35 is the high end maximum to pay for mowing...
Regardless of the size of the lawn... unless it's several acres.
And mulch, $50 for a massive load deliverd and installed.