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Thread: $ 15 a yard
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Old 03-05-2012, 12:51 PM
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Quote:
Originally Posted by Leon View Post
WOW I don't know what to think because as some of you on here know I do charge $15 for lawn service. I Have about 60 home I cut for $15per week, however if you don't want weekly service the I charge $20-$25. Now these prices are only for townhomes and the yard are small takes about 15-20 mins. Does that make me a lowballer? I like these kinds of homes because they are small I can do about 4-5 per hour and not move my truck. I do a great job these clients refer me to everyone moms,co-workers, friends, etc and they sometimes have nice high$$ homes, I don't charge the referd client $15-$20. The smaller homes will buy add-ons before the larger homes
Based on the situation you describe, your pricing system seems to make sense. However, the potential issue I see is that you are depending on having multiple clients in close proximity in order to maintain that low price. The only question is if you lose, say, half of those clients for some reason, does the $15/lawn earn you any profit? Assuming it doesn't, and you now have to decide to raise the price in order to retain the remaining clients at a profit, would they go along with the raise in price?

It begs the wider question, which is: Should the price offered to a client reflect your expectation that other clients are in close proximity, therefore allowing you to charge less and still draw profit? Or should each price offered to each client be considered as an individual profit stream, independent of the existence of other clients for the price to remain profitable?
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