Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > General Business Discussions

General Business Discussions A place to talk about general business discussions.

Price Charge Survey


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #11  
Old 01-16-2009, 09:59 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,185
Rep Power: 10
Steve has disabled reputation
Default

Quote:
I don't think this is too good of an idea. I mean my numbers are my numbers because of how i run my company I may charge $115 and hour per crew because they have uniforms, we know my numbers, we pay taxes, we are making an employee hand book, we pay ins., we pay to be in the BBB, we are licensed, We have nice/professional equipment and vehicles. . .the next guy does it for beer money so all he needs is gas money and some extra left over to spend at the bar . . . There are just too many variables
That is very true, but if you take your figures and you then average them with a guy doing it for beer money, then it gives the new startup a figure to consider. Otherwise they will most likely just shoot for the absolute lowest price they can come up with.

Why not offer them a higher price to shoot for? Then you don't have to worry about them coming in so low they just kill the industry pricing?

If they see they can make more money. They will charge more money and ultimately everyone will enjoy a benefit from a reduced pool of new businesses who lowball.

What do you think of that?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #12  
Old 01-16-2009, 10:09 PM
EasyPro's Avatar
EasyPro EasyPro is offline
Senior Member
 
Join Date: Oct 2008
Posts: 167
Rep Power: 6
EasyPro is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
Quote:
Originally Posted by Steve View Post
That is very true, but if you take your figures and you then average them with a guy doing it for beer money, then it gives the new startup a figure to consider. Otherwise they will most likely just shoot for the absolute lowest price they can come up with.

Why not offer them a higher price to shoot for? Then you don't have to worry about them coming in so low they just kill the industry pricing?

If they see they can make more money. They will charge more money and ultimately everyone will enjoy a benefit from a reduced pool of new businesses who lowball.

What do you think of that?
Thats worse than a low baller . . .Steve i truely believe that you are like me and hate low ballers . . .

that being said a low baller is easily seen from a customers stand point because they offer the absolute insane low price . . .

now then, why would i want to give them something that is going to make them competitive when in the end they are still low ballers?

Low ballers don't mean just low prices - it means un insured, un licensed, un PROFESSIONAL !!!!
__________________
DJ Carroll
EasyPro Property Services
502-525-3279
Reply With Quote
  #13  
Old 01-16-2009, 10:23 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,185
Rep Power: 10
Steve has disabled reputation
Default

Quote:
now then, why would i want to give them something that is going to make them competitive when in the end they are still low ballers?

Low ballers don't mean just low prices - it means un insured, un licensed, un PROFESSIONAL !!!!
Well here is my view on this. When anyone starts out with anything, they have no idea what they are doing.

As we see on the forum, we have many many new business owners trying to figure out what is the going rate for certain basic services they want to offer.

When no one tells them or they can't find it, they tend to bid very low. Because they bid low, they can't afford to buy insurance. They probably aren't paying taxes on the money they make. Ultimately there is this class of small business owners who if they just had a little knowledge, would have an ah-ha moment and say OH I need to be charging around $X per hour in order to do this properly.

Now when other lawn care business owners are out giving bids, ideally they are no longer competing on price but instead on who seems to please the customer the most, provide the best service etc.

If we don't educate ourselves and others, there is no growth.

What's your view?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
Reply With Quote
  #14  
Old 01-16-2009, 11:19 PM
musician/lawnman's Avatar
musician/lawnman musician/lawnman is offline
Chuck
 
Join Date: Feb 2008
Location: South West Florida
Posts: 919
Rep Power: 7
musician/lawnman is on a distinguished road
Default

Wow, Tuff crowd in here!
Ok, well I see both sides of this argument I suppose.

On one hand we have the lowballers, who yes if they are intelligent will reach out to learn & better themselves & eventually become a legitimate business. I have always helped & advised anyone who asked me for help & wanted to do the right thing as some others both in my area & on this forum did for me back when I really needed the guidance. though at the same time most half-assed low ballers don't stay in business long enough to make much a dent in my marketshare as far as I can tell (I could be wrong but business is good so I don' worry about it all that much) There are a good portion of the alchoholic lawn mowing crew sect that would only take such information (as stated above) & use it to charge more, while still not doing anything the right way. So I am not a fan of the idea of just posting my numbers for the world to see & for "Joe's drunken lawn service" to use against me.

On the other hand If somebody is seeking help, you should help them. For me I want to know WHO knows my numbers. I am in Florida, my figures will be useless to anyone outside of my area as we are in different markets so they don't need em'. Anyone in my region can reach out for help. If I feel after a short conversation that they are genuine in their desire to run their business properly or get off on the right foot, I offer them all the information & advise I can. From pricing, to policies & precedures, & from where to buy liability insurance to the best friggen trimmer line for the buck.
I have recieved help from tons of guys (Jamie-all aspects, Tim-real huntin', ritchiem, Steve, & on & on....) I have also helped a ton of guys out (Little's, Phil, Justin, Barry etc....)
But Steve, I am not filling out a "I charge $___x____ for mowing ____sq ft__
& $___Y___ for trimming ______ tree" chart man. Sorry bud , I'm not with ya on this one. Somethings with great intentions can be business suicide.
__________________
AAA QUALITY CLEAN CUT, LLC.
LAWN CARE & LANDSCAPING
Visit us here:

  #15  
Old 01-16-2009, 11:21 PM
EasyPro's Avatar
EasyPro EasyPro is offline
Senior Member
 
Join Date: Oct 2008
Posts: 167
Rep Power: 6
EasyPro is on a distinguished road
Default

Quote:
Originally Posted by Steve View Post
Well here is my view on this. When anyone starts out with anything, they have no idea what they are doing.

As we see on the forum, we have many many new business owners trying to figure out what is the going rate for certain basic services they want to offer.

When no one tells them or they can't find it, they tend to bid very low. Because they bid low, they can't afford to buy insurance. They probably aren't paying taxes on the money they make. Ultimately there is this class of small business owners who if they just had a little knowledge, would have an ah-ha moment and say OH I need to be charging around $X per hour in order to do this properly.

Now when other lawn care business owners are out giving bids, ideally they are no longer competing on price but instead on who seems to please the customer the most, provide the best service etc.

If we don't educate ourselves and others, there is no growth.

What's your view?
I say don't give a man a fish so he can eat, give him a fishing pole so he can feed himself . .. Does that make sense?

When some one ask me how much to charge i tell them as much as they can get!

then I ask them what thier cost are . . . don't tell a low baller what price to charge tell him how to figure it out

In school they didn't teach us that two plus two was 4 they taught us that you take a number plus a number and it equals the sum of the numbers.

Teach them how to price not just tell them what is the "going rate"
the "going rate" is the going out of business rate
__________________
DJ Carroll
EasyPro Property Services
502-525-3279
Reply With Quote
  #16  
Old 01-17-2009, 12:21 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,185
Rep Power: 10
Steve has disabled reputation
Default

Hi Chuck,

Quote:
I have always helped & advised anyone who asked me for help & wanted to do the right thing as some others both in my area & on this forum did for me back when I really needed the guidance. though at the same time most half-assed low ballers don't stay in business long enough to make much a dent in my marketshare as far as I can tell (I could be wrong but business is good so I don' worry about it all that much)
Yes new lawn care business owners will come and go because they under price however there is always going to be a steady stream of them and one that fails is replaced by 2 or 3 or 4 or ...... others.

I would say think of this as a virtual union concept. The union comes up with a price and the factory pays it. The union protects it's employees with a collective awareness of bigger pictures that the individual is unaware of.

If your state shoots for an average of $35 per lawn and you know this, you would shoot for it too.

When everyone shoots for a collective price per service, ultimately you help take price competition off the table and you focus on other issues to sell a service. Like how is the service regardless of the price.

In the big picture you benefit from this.

That's my view at least. This is all a big experiment and we will see how it goes, but wouldn't you like to know how your prices compare with others? Wouldn't you feel pretty good if you knew you were above the normal prices and you could get that because of your service? Or what if you found you were below the average, wouldn't you like to increase your prices? Wouldn't anybody?

DJ,

Quote:
When some one ask me how much to charge i tell them as much as they can get!
I agree, and then I would ask, how much can I get? What is the average in my area? I would like to know.

Regardless of my costs, I want to know how much I can get.

Knowing your costs helps you know if you are going to make a profit or take a loss but knowing your costs does not let you pick a price to charge in a vacuum without regard of competitors. You really need to know a range to shoot for.

If my costs are $100 per man hour and I decide I need to charge $120 per man hour to perform lawn care and the average in my area is $50 per man hour, I better have some super duper amazing service to justify. But customers are not going to care what my costs are when I charge them. Customers are going to see what the going rate is and then factor, how much they prefer me over others. How much better a job I do than others. etc etc

What do you all think of this?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #17  
Old 01-17-2009, 12:25 AM
justin_time justin_time is offline
Justin
 
Join Date: Apr 2006
Location: French River, ON, Canada
Age: 28
Posts: 1,801
Rep Power: 0
justin_time is on a distinguished road
Default

Quote:
Originally Posted by musician/lawnman View Post
I have also helped a ton of guys out (Little's, Phil, Justin, Barry etc....)
Thanks Chuck

Btw, I assume your a busy guy, you don't get the chance to chat to me anymore brother, what's up
Reply With Quote
  #18  
Old 01-17-2009, 12:36 AM
EasyPro's Avatar
EasyPro EasyPro is offline
Senior Member
 
Join Date: Oct 2008
Posts: 167
Rep Power: 6
EasyPro is on a distinguished road
Default

Quote:
Originally Posted by steve View Post
Dj,



I Agree, And Then I Would Ask, How Much Can I Get? What Is The Average In My Area? I Would Like To Know.the Average Doesn't Matter. Figure Out Your Cost Throw In Your 30% Owner Draw And 10 To 15 Percent For The Company Retained Earnings And That Is What You Have To Charge!!!!

Regardless Of My Costs, I Want To Know How Much I Can Get. it Doesn't Matter!!!! Your Numbers Tell You What You Better Get!!!!

Knowing Your Costs Helps You Know If You Are Going To Make A Profit Or Take A Loss But Knowing Your Costs Does Not Let You pick A Price To Charge In A Vacuum Without Regard Of Competitors. You Really Need To Know A Range To Shoot For.a Price Should Be A Strategically Figured Number.

If My Costs Are $100 Per Man Hour And I Decide I Need To Charge $120 Per Man Hour To Perform Lawn Care And The Average In My Area Is $50 Per Man Hour,then You Need To Stop Right There And Find Something Else To Do Or Decide If You Wanna Cut Corners Like Every One Else I Better Have Some Super Duper Amazing Service To Justify. But Customers Are Not Going To Care What My Costs Are When I Charge Them. Customers Are Going To See What The Going Rate Is And Then Factor, How Much They Prefer Me Over Others. How Much Better A Job I Do Than Others. Etc Etc

What Do You All Think Of This?
Great Thread Guys!!!!!!!!!!!!!!
__________________
DJ Carroll
EasyPro Property Services
502-525-3279
Reply With Quote
  #19  
Old 01-17-2009, 01:57 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,185
Rep Power: 10
Steve has disabled reputation
Default

Quote:
the Average Doesn't Matter. Figure Out Your Cost Throw In Your 30% Owner Draw And 10 To 15 Percent For The Company Retained Earnings And That Is What You Have To Charge!!!!
Is this a standard view and if so, why is this a standard view? Do you feel most lawn care businesses follow this concept?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
Reply With Quote
  #20  
Old 01-17-2009, 08:39 AM
musician/lawnman's Avatar
musician/lawnman musician/lawnman is offline
Chuck
 
Join Date: Feb 2008
Location: South West Florida
Posts: 919
Rep Power: 7
musician/lawnman is on a distinguished road
Default

I agree with Dj in that " don't tell a low baller what price to charge tell him how to figure it out "

You have a great cost estimator on here now. Keep teaching them to use it or something similar.


Justin,

Sorry man, It's not that I've been avoiding ya by anymeans, it's just that skype seems to pops up with messages and spam & bimbetts named "candy" or "bubbles" who just wanna "chat" (get you to check out their **** site)about 400 times for every one time somebody I know contacts me on it. So I have it set as "Away". Things drives me crazy.
__________________
AAA QUALITY CLEAN CUT, LLC.
LAWN CARE & LANDSCAPING
Visit us here:

Reply

Bookmarks

Tags
how much to charge, lawn price, per hour, price, snow plow, snow plow quote, snow plowing, survey

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Lawn Care Customer Survey Document Steve Free Lawn Care Business Forms & Templates 1 05-04-2009 05:50 AM
Questions to ask in a customer survey Steve General Business Discussions 0 11-07-2008 09:32 AM
Customer Survey Document Steve General Business Discussions 0 12-06-2006 03:50 PM
Survey Shows Entrepreneurial Aspirations Steve General Business Discussions 6 04-24-2006 09:30 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Got my first lawn job...
SGL1
06-11-2014 09:19 PM
Today 12:23 PM
by Steve
28 1,128
Customer letters
kslawn
Yesterday 06:17 AM
Today 12:19 PM
by Steve
3 74
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Today 12:14 PM
by Steve
76 4,294
Should I ?
googus
07-22-2014 04:06 PM
Today 12:10 PM
by Steve
4 119
Left handed edging with...
SGL1
Yesterday 08:59 PM
Today 08:20 AM
by SGL1
2 53
Need help determining...
Jbss861
07-20-2014 02:33 PM
Today 06:54 AM
by kslawn
12 264
My First Apartment...
SSLCtn
05-26-2014 10:17 PM
Today 06:46 AM
by kslawn
15 837
Crop Rotation Techniques...
eastsidelandcare
07-17-2014 03:47 PM
Today 06:38 AM
by kslawn
3 147
Selling lawns like...
eastsidelandcare
07-17-2014 03:51 PM
Today 06:28 AM
by kslawn
3 186
Scag new "Eliminator"......
ExtremeLawncareServices
07-20-2014 10:45 AM
Yesterday 05:37 PM
by Just for Cuts
9 221
need professional advice...
Fiddlers_green
07-20-2014 07:21 PM
Yesterday 12:42 PM
by Steve
3 148
new to me box truck
jrayb39667
03-06-2014 10:20 PM
Yesterday 12:40 PM
by Steve
15 1,324
Lawn Service back in...
LawnCareMan280
07-18-2014 09:00 PM
Yesterday 11:48 AM
by Steve
4 182
Overspray?
stevef1201
07-21-2014 04:20 PM
Yesterday 11:39 AM
by Steve
3 91
Hello Everyone! Newbie...
SLKlawn
07-17-2014 06:22 PM
07-22-2014 01:53 PM
by Steve
6 217
Proper height for lawn
rob lederhilger
05-26-2014 08:01 AM
07-21-2014 02:53 PM
by LawnDoctor
9 614
Blade sharpener
Just for Cuts
07-04-2014 12:31 PM
07-21-2014 01:48 PM
by Steve
9 454
What's my business worth?
Chaz
07-16-2014 01:35 PM
07-21-2014 01:45 PM
by Steve
4 231
Single tree, mow customer
WesleySnips
06-27-2014 10:12 AM
07-21-2014 01:04 PM
by Steve
12 505
1.5 Acre Jungle
WesleySnips
07-15-2014 05:57 PM
07-20-2014 11:31 AM
by ExtremeLawncareServices
21 531
Gopher schedule software
Ray
07-18-2014 04:13 PM
07-18-2014 04:13 PM
by Ray
0 120
2006 Chevy fuel pump...
KevinsLawns
07-17-2014 08:39 PM
07-18-2014 11:51 AM
by Steve
1 121
Halfway point of year!
Steve
07-01-2014 12:08 PM
07-18-2014 11:38 AM
by Steve
14 665
I got told to leave and...
gwilson98
06-16-2014 02:07 PM
07-17-2014 11:43 AM
by Steve
16 983
Hey guys this is the...
prmenter@gmail.com
07-07-2014 08:23 PM
07-16-2014 08:10 PM
by ExtremeLawncareServices
28 717
Mowing the hills
prmenter@gmail.com
07-08-2014 12:22 PM
07-16-2014 05:00 PM
by Just for Cuts
18 652
Say Hello !!!
Steve
03-19-2007 11:18 AM
07-15-2014 05:38 PM
by icon2000
1,184 318,660
need some help geting...
dalvan0
07-13-2014 09:28 PM
07-15-2014 11:56 AM
by Steve
5 224
new trailer help
mattthelawnguy
07-11-2014 08:21 PM
07-15-2014 11:42 AM
by Steve
9 327
Classified Ad Template...
bcfb
06-05-2013 02:40 AM
07-15-2014 11:16 AM
by Steve
15 3,663
Husqvarna pz 60
CDLAWNCARE
07-06-2014 06:50 PM
07-15-2014 08:53 AM
by kslawn
10 402
Lowballers
Chaz
07-11-2014 03:55 PM
07-14-2014 12:27 PM
by Steve
5 331
My new side job
Sprinkler Buddy
05-10-2014 05:23 AM
07-14-2014 12:15 PM
by Steve
10 792
Illegal spraying
GoGreenerKS
07-04-2014 09:11 AM
07-13-2014 10:36 PM
by GoGreenerKS
10 514
New Mower and Trailer
Chaz
06-25-2014 12:04 PM
07-13-2014 06:25 PM
by SGL1
7 524
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
07-12-2014 07:36 PM
by SGL1
21 1,839
Fuel and fuel additives
SGL1
07-06-2014 10:23 AM
07-11-2014 07:53 PM
by SGL1
15 513
Questions for a patchy...
jumcgee
07-09-2014 08:42 AM
07-11-2014 12:34 PM
by Steve
1 183
toro proline blades wont...
boog
06-25-2014 06:26 PM
07-11-2014 05:28 AM
by kslawn
18 614
Contents of Marketing to...
prmenter@gmail.com
07-09-2014 05:25 PM
07-10-2014 03:23 PM
by Steve
3 272
Shindaiwa
CLB454
05-13-2014 09:04 PM
07-10-2014 03:04 PM
by Steve
14 749
Starting New in FL
mmcuttrim
08-06-2010 09:22 AM
07-10-2014 02:44 PM
by Steve
48 11,213
Bid help 45 on acre...
Priggan
06-26-2014 12:56 PM
07-09-2014 08:38 AM
by kslawn
7 495
need help bidding fence...
veteranslawncaresystems
07-03-2014 10:33 AM
07-08-2014 12:00 PM
by Steve
5 354
Trimmer or Knife?
gwilson98
07-04-2014 09:56 PM
07-07-2014 02:41 PM
by Steve
6 318
Started a New Solar Lawn...
Solar Lawn Care
06-08-2013 01:40 AM
07-07-2014 01:55 PM
by Steve
37 7,387
New Canadian Member
coppervalley
07-04-2014 02:15 PM
07-07-2014 01:12 PM
by Steve
1 220
Happy Independance...
stevef1201
07-04-2014 07:05 AM
07-07-2014 01:01 PM
by Steve
2 219
Echo PE 266 edger
stevef1201
07-01-2014 01:28 PM
07-07-2014 12:47 PM
by Steve
4 298
30 Inch Push Mowers Pros...
Billy Goat
06-27-2013 08:07 PM
07-06-2014 01:50 PM
by SGL1
21 5,206
» Popular Tags
4wd advertisement article marketing auger bid butterfly gardens charge christmas lighting christmas light service courtesy call customers decorating estimate exmark ferris first truck fundraiser gopherhaul grass gravely hills holiday holiday decorating holiday lighting how much to charge introduction john deere quik trac lawn lawn care lawn care business book lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website leaf lighting marketing monthly mow mulch mulch price new buisness new mower organize outdoor environments payment podcast property management company pto reo scag schedule scripts seo snow starting a business starting a lawn care business start up lawn care business steve stihl theft toro toro grand stand trailer trimmer rack walker winter winter services zero turn
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 12:32 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 12:32 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy