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Neighborhood group pricing???

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  • Neighborhood group pricing???

    I started my lawn care business in the middle of last season and managed to pick up 11 accounts. I am strating to get things rolling for this season. I have already picked up a couple of new accounts and one HOA doing common areas.

    I recieved a call from one of the board members of the HOA today, and she told me another lawn care company had contacted her about offering a group rate for homeowners in the neighborhood. It would be one rate for 3 or more, reduced rate for 6 or more, and reduced more for 12 plus. She wanted to give me the same chance to offer the reduced group rate when see presents it at there next meeting, since I already have the contract with the HOA. The yards in the neighborhood are for the most part very similar. Most would be my minimum of $35 on their own, under normal circumstanses, but some would be $40 possibly $45. There are a total of 38 yards in the neighborhood and while there are a lot of older retired folks who probably would be happy to pay someone to do their lawn care, there is still several that will do their own yards. I have know idea what the ones using lawn care contractors may be paying now, or what this other guy has to offer.

    Has anybody tried anything like this? Do you think this could possibly work or would I just get hosed by the slightly larger yards? I don't want to miss a good opportunity, but I am not sure this is a good opportuniy.

    Any advise would be greatly apperciated.

    Matt
    Coastline Lawn Care

  • #2
    I would take it you may get hosed on slightly larger yards but at the same time you will make more on the much smaller lawns. What I would do is group the amount of time it takes to mow all lawns and do an average for money made per hour basically I would group them as one bill or one large account

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    • #3
      I started my lawn care business in the middle of last season and managed to pick up 11 accounts. I am strating to get things rolling for this season. I have already picked up a couple of new accounts and one HOA doing common areas.

      I recieved a call from one of the board members of the HOA today, and she told me another lawn care company had contacted her about offering a group rate for homeowners in the neighborhood. It would be one rate for 3 or more, reduced rate for 6 or more, and reduced more for 12 plus. She wanted to give me the same chance to offer the reduced group rate when see presents it at there next meeting, since I already have the contract with the HOA. The yards in the neighborhood are for the most part very similar. Most would be my minimum of $35 on their own, under normal circumstanses, but some would be $40 possibly $45. There are a total of 38 yards in the neighborhood and while there are a lot of older retired folks who probably would be happy to pay someone to do their lawn care, there is still several that will do their own yards. I have know idea what the ones using lawn care contractors may be paying now, or what this other guy has to offer.

      Has anybody tried anything like this? Do you think this could possibly work or would I just get hosed by the slightly larger yards? I don't want to miss a good opportunity, but I am not sure this is a good opportuniy.

      Any advise would be greatly apperciated.

      Matt
      Coastline Lawn Care
      First off, I like your business name.

      38 yards in that neighborhood? That is some dough right there. I would offer them a similair deal. Their all grouped together so no issue on getting from point A to point B. Your making money by not traveling a lot.

      This is great news for you as well since its only your second year. Thats awesome.

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      • #4
        Let me make sure I am being clear about this. I am not garunteed 38 yards. The offer will be presented to the homeowners for them to accept on a per home/yard basis. I would be charging the homeowner not the HOA. Still may be a good opportunity, just a little scared/concerned. At the same time if nothing else its a learning experience.

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        • #5
          Whether its 5, 10 or more yards. Go for it. It's a great deal since their in one central location. Go just below your rate depending on how many want to sign up under you.

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          • #6
            It would be one rate for 3 or more, reduced rate for 6 or more, and reduced more for 12 plus. She wanted to give me the same chance to offer the reduced group rate when see presents it at there next meeting
            What kind of reduced rates are they looking for, for the 3 or 6 or 12 plus? And how will they help you line those customers up for those reduced rates?

            Furthermore, how much do you feel it would save you if you had these lawns closer together like this, per lawn?
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