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 > Trials & Tribulations - The drama of running a business and of life.

Trials & Tribulations - The drama of running a business and of life. It's not as easy as it looks. Running a business is full of drama. Customers, employees, money, family, time. You name it, it's a problem. Share with us your drama and how you handled it.

Lowering prices. Bah!


Trials & Tribulations - The drama of running a business and of life.

It's not as easy as it looks. Running a business is full of drama. Customers, employees, money, family, time. You name it, it's a problem. Share with us your drama and how you handled it.
Reply
 
Thread Tools Search this Thread
  #1  
Old 07-03-2009, 04:44 AM
mark123's Avatar
mark123 mark123 is offline
Senior Member
 
Join Date: Apr 2009
Location: Pennsyltucky
Posts: 1,402
Rep Power: 8
mark123 is on a distinguished road
Default Lowering prices. Bah!

I got a call from a referral yesterday so I went to measure the lawn. The lady isn't happy with her current service and I cut her neighbor's lawn who is happy with me.

My price came to $31 + tax. She seemed a bit startled so I asked what she's paying now. $25 even. So, I lowered the price to $27. I didn't think of it at the time but since the guy isn't charging tax then he probably isn't insured either which is a good selling point. Plus I obviously do a better job that the lawnhack.

I'm a legitimate business, registered federally and locally, certified and insured. I've got to stop lowballing myself. I didn't really mind lowering this price as I don't have to drive to the job, I'm already there doing the neighbor's lawn and I'm surely not going to complain about new work.
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


  #2  
Old 07-03-2009, 09:10 AM
turfmaster's Avatar
turfmaster turfmaster is offline
Senior Member
 
Join Date: Apr 2009
Location: Midwest
Posts: 366
Rep Power: 7
turfmaster is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
Quote:
Originally Posted by mark123 View Post
I got a call from a referral yesterday so I went to measure the lawn. The lady isn't happy with her current service and I cut her neighbor's lawn who is happy with me.

My price came to $31 + tax. She seemed a bit startled so I asked what she's paying now. $25 even. So, I lowered the price to $27. I didn't think of it at the time but since the guy isn't charging tax then he probably isn't insured either which is a good selling point. Plus I obviously do a better job that the lawnhack.

I'm a legitimate business, registered federally and locally, certified and insured. I've got to stop lowballing myself. I didn't really mind lowering this price as I don't have to drive to the job, I'm already there doing the neighbor's lawn and I'm surely not going to complain about new work.
I did several bids this spring on $40.00 lawns that people wanted to pay only $25.00.
Most of those people said they were getting estimates for $25.00 $30.00 for these 1/2 acre lawns.
I was getting $30.00 for lawns in that subdivision 15 years ago.
Sometimes you gotta stick to your guns. Hopefully when the economy turns
around these lowballers will be gone.
Reply With Quote
  #3  
Old 07-03-2009, 10:13 AM
swstout's Avatar
swstout swstout is offline
Steve
 
Join Date: Jan 2009
Location: Canastota, NY
Age: 66
Posts: 1,082
Rep Power: 8
swstout is on a distinguished road
Default I know what you mean!

Quote:
Originally Posted by mark123 View Post
I got a call from a referral yesterday so I went to measure the lawn. The lady isn't happy with her current service and I cut her neighbor's lawn who is happy with me.

My price came to $31 + tax. She seemed a bit startled so I asked what she's paying now. $25 even. So, I lowered the price to $27. I didn't think of it at the time but since the guy isn't charging tax then he probably isn't insured either which is a good selling point. Plus I obviously do a better job that the lawnhack.

I'm a legitimate business, registered federally and locally, certified and insured. I've got to stop lowballing myself. I didn't really mind lowering this price as I don't have to drive to the job, I'm already there doing the neighbor's lawn and I'm surely not going to complain about new work.
I just got back from an estimate on a 39,000 sq ft lawn to a senior citizen. He wanted weekly mowing. A lot of trim and edging involved. I quoted him $190.00 ($200.00 minus 5% senior discount). He told me I was crazy. The last quote he got was $90.00.

I told him that was only $22.50 a week. That would just barely cover my gas to and from the job and for the mower. I asked if the quote was from someone licensed and insured? He didn't know.

The job would be 32 miles round trip. That is 2 gallons of gas or about $6.00. Another $3.00 for gas for the mower. Leaving $13.50 for the mowing.

As I was leaving he said, "How about $125.00 a month?" I said, $190.00, thanked him for the opportunity to bid and left.

I doubt he found someone for $90.00 per month and the job is too big for him to do (he is in his late 80's early 90's). The house is probably in the $250,000 range and he had a Escalade and a Lincoln Town Car in his 3 car garage. I spent over an hour walking the land, figuring the estimate and $6.00 in gas. I need work, but I am not going to do it to break even!

Steve
__________________


Reply With Quote
  #4  
Old 07-04-2009, 05:19 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,460
Rep Power: 10
Steve has disabled reputation
Default

This does get you thinking. If you can get a lawn nearby to a current customer, how much extra wiggle room does it give you on the price if the customer is looking for a lower price?
__________________
- 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
  #5  
Old 07-04-2009, 07:10 AM
mark123's Avatar
mark123 mark123 is offline
Senior Member
 
Join Date: Apr 2009
Location: Pennsyltucky
Posts: 1,402
Rep Power: 8
mark123 is on a distinguished road
Default

Quote:
Originally Posted by Steve View Post
This does get you thinking. If you can get a lawn nearby to a current customer, how much extra wiggle room does it give you on the price if the customer is looking for a lower price?
I find that having more than one lawn at the same stop is the key to making money. It adds to your efficiency.

I charge a $13 stop charge for each property. Basically, when I give an estimate I measure the property, multiply the size of the lawn by what I want per square foot and add the stop charge. (edit to add) I also add for extra long driveways that need string trimmed or ditches that I can't put a mower in or if they have 300 trees that need trimmed around.

The stop charge is basically what I want to get me there and unload/load my equipment so if I only have to drive to one place and unload/load once to do two or three lawns then I can play with the 13 bucks. I've never had to go more than -$4 though and so far I'm at 100% on selling at an estimate.

Last edited by mark123; 07-04-2009 at 07:21 AM.
Reply With Quote
  #6  
Old 07-04-2009, 07:13 AM
musician/lawnman musician/lawnman is offline
Chuck
 
Join Date: Feb 2008
Location: South West Florida
Posts: 919
Rep Power: 0
musician/lawnman is on a distinguished road
Default

Quote:
Originally Posted by Steve View Post
This does get you thinking. If you can get a lawn nearby to a current customer, how much extra wiggle room does it give you on the price if the customer is looking for a lower price?
Not much Steve, when you start out you are not making much, as business grows & the routes tighten, you finally become more profitable. If there is a discount to be given, you should be giving it to your existing customer who reffered the neighbor. If you "give" the service away because your already on the block then how are you ever going to start making any money to speak of? I don't recommend discounting new customers especially if it means they get a lower price than the established client you already have.
What happens when they talk & the client you've had for years realizes you gave the new person a better price than they have been paying all this time?
Reply With Quote
  #7  
Old 07-04-2009, 07:19 AM
mark123's Avatar
mark123 mark123 is offline
Senior Member
 
Join Date: Apr 2009
Location: Pennsyltucky
Posts: 1,402
Rep Power: 8
mark123 is on a distinguished road
Default

Quote:
Originally Posted by musician/lawnman View Post
... What happens when they talk & the client you've had for years realizes you gave the new person a better price than they have been paying all this time?
The clients really don't know my formula and unless they go and measure the lawn they won't know the difference in size. I'd just tell them there are many factors to determining the price of a lawn.

"Sure their lawn is bigger but there is no weed-whacking and their driveway is short so that it only takes 30 seconds to blow clean." There are just too many variables to get into.
Reply With Quote
  #8  
Old 07-05-2009, 11:37 AM
jds2381's Avatar
jds2381 jds2381 is offline
Member
 
Join Date: May 2009
Posts: 50
Rep Power: 7
jds2381 is on a distinguished road
Default

I would have stuck to my guns on the price sir. After all the $25 service they were receiving wasn't making them happy.
__________________
www.pleasehelpmylawn.com
Reply With Quote
  #9  
Old 07-05-2009, 01:24 PM
mark123's Avatar
mark123 mark123 is offline
Senior Member
 
Join Date: Apr 2009
Location: Pennsyltucky
Posts: 1,402
Rep Power: 8
mark123 is on a distinguished road
Default

Quote:
Originally Posted by jds2381 View Post
I would have stuck to my guns on the price sir. After all the $25 service they were receiving wasn't making them happy.
Yes, of course. You are correct. However, I'm not going to turn down extra work right now. I have 2.5 empty days per week and I'm going to fill them before turning away customers.
Reply With Quote
  #10  
Old 07-16-2009, 10:52 PM
QCLAWN's Avatar
QCLAWN QCLAWN is offline
Junior Member
 
Join Date: Feb 2009
Posts: 9
Rep Power: 7
QCLAWN is on a distinguished road
Default

I just started my business tis year and have many estimates. One man was unhappy with last years lawn guy and he paid 50.00 per mow. He has 3/4 acre and I told him 70. He thought about it and signed the contract. He has been very happy with our work and does not complain at all.

I have three and a half days off and trying to fill the spots. I won't lower my price just to have work. I want to be paid for the quality of work done and doing it correct. This is my opinion, Good luck on your choice.
Reply With Quote
Reply

Bookmarks

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
Raising Prices??? lawnsalonforyou Starting a lawn care business. 6 04-23-2009 07:06 PM
Hourly Prices? and Acre Prices? Paradise Lawn and Pool General Business Discussions 0 03-10-2008 09:02 AM
Home prices? Steve General Talk 0 01-19-2008 08:47 PM
winter prices FourSeasons General Talk 10 01-03-2008 05:23 PM
What are the gas prices in your area? Steve General Talk 4 07-24-2007 07:06 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Is it too late to do...
markty
06-16-2015 05:28 PM
Yesterday 07:34 PM
by wolfpacker53
5 1,971
I dont know what to do...
Bradcook21
06-21-2015 08:49 AM
Yesterday 07:33 PM
by stallman419
12 2,140
Should I buy this Exmark...
googus
Yesterday 09:22 AM
Yesterday 03:29 PM
by googus
3 63
Just about mid year, how...
GreenWorx
06-24-2015 07:05 PM
Yesterday 02:53 PM
by American L&T
6 1,906
another newish job for me
holymoly
06-07-2015 08:34 AM
Yesterday 02:06 PM
by American L&T
9 2,107
Unemployment rates drop,...
Steve
07-02-2015 12:40 PM
Yesterday 09:42 AM
by Steve
2 67
Before & After tree...
COREtreeservice
07-01-2015 09:20 PM
07-01-2015 09:20 PM
by COREtreeservice
0 71
Dogs
Mr. Mow
06-29-2015 02:37 PM
07-01-2015 11:28 AM
by Steve
6 1,875
Ready to learn and get...
Koley Lawn & Landscape
06-28-2015 05:16 AM
07-01-2015 11:26 AM
by Steve
8 1,855
Three Stripe Land Care...
hammr04
06-30-2015 07:19 PM
07-01-2015 11:24 AM
by Steve
1 70
Country Life Lawn Care
darleneh
06-29-2015 11:24 AM
06-30-2015 01:25 PM
by Steve
3 1,730
Rubber mulch...
avetslawncare
06-24-2015 09:28 PM
06-29-2015 09:23 PM
by Chilehead
6 1,865
Marketing ideas
xandrew245x
04-29-2014 06:35 AM
06-25-2015 07:11 PM
by GreenWorx
34 5,722
Never ending sod jobs
avetslawncare
06-05-2015 09:46 PM
06-25-2015 11:42 AM
by Steve
11 2,343
Weed and Feed Service...
mike94740
06-23-2015 05:50 PM
06-24-2015 09:56 PM
by avetslawncare
2 1,786
Trimming hedges / trees,...
Hard-Body lawn & garden
06-23-2015 07:08 PM
06-24-2015 09:59 AM
by Steve
1 1,789
Hi Everyone from Arkansas
KellyMarie
06-04-2015 04:16 PM
06-23-2015 01:34 PM
by KellyMarie
4 2,054
how to make customers...
Bradcook21
05-27-2015 05:04 PM
06-23-2015 06:36 AM
by GreenWorx
7 2,289
problems with a customer...
LawnCareMan280
06-16-2015 10:26 PM
06-22-2015 11:11 AM
by Steve
6 2,085
Please review this FREE...
markty
06-21-2015 07:42 AM
06-22-2015 11:00 AM
by Steve
1 1,811
A good commercial bid...
burtle
06-20-2015 09:09 PM
06-22-2015 10:56 AM
by Steve
1 1,870
What would you do with...
holymoly
06-20-2015 06:48 PM
06-22-2015 10:48 AM
by Steve
1 1,834
New Member just joined...
vgoleco@hotmail.com
06-19-2015 03:49 PM
06-22-2015 10:42 AM
by Steve
2 1,838
Credit Cards - What's in...
Shark1611
06-16-2015 03:04 PM
06-21-2015 07:24 PM
by Chilehead
4 1,936
Blade usage
Wolf4dk
06-16-2015 12:18 AM
06-21-2015 05:35 PM
by kslawn
4 1,941
Hello, I am new to the...
adamslawnservices
06-17-2015 08:06 PM
06-19-2015 10:28 AM
by Steve
3 1,866
First commercial bid
SGL1
06-12-2015 08:57 PM
06-18-2015 05:04 PM
by SGL1
9 2,315
Needing a website built
burtle
06-17-2015 09:02 AM
06-18-2015 11:02 AM
by Steve
7 2,016
I have been rude and...
biglee
06-15-2015 10:11 PM
06-18-2015 10:46 AM
by Steve
10 2,103
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 12:06 AM
06-17-2015 08:38 AM
by burtle
9 3,189
Customer keeps adding...
Mr. Mow
06-13-2015 06:22 AM
06-16-2015 10:23 AM
by Steve
11 2,314
Pass discounts onto...
burnell76
06-03-2015 06:33 PM
06-16-2015 10:02 AM
by burnell76
3 2,038
burned grass only where...
nhauto
06-15-2015 05:28 PM
06-16-2015 09:45 AM
by Steve
2 1,906
Half year mark review.
Steve
06-02-2015 11:24 AM
06-15-2015 01:04 PM
by Steve
18 2,632
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
06-15-2015 01:01 PM
by Steve
86 9,690
New Member
Bruce Fehr
06-05-2015 07:13 PM
06-15-2015 12:53 PM
by Steve
6 2,040
New to the business,...
CarefreeMowing
06-12-2015 02:36 PM
06-15-2015 12:50 PM
by Steve
1 1,926
Beginner Mistakes:...
Steve
01-31-2007 11:45 AM
06-13-2015 08:48 AM
by holymoly
45 12,017
New to the forum, new to...
CarefreeMowing
06-11-2015 12:35 PM
06-12-2015 10:44 AM
by Steve
2 1,841
problems with a customer
LawnCareMan280
05-19-2015 06:28 PM
06-11-2015 10:50 PM
by stallman419
8 2,390
Website Review
Outdoordesignsknox
06-08-2015 08:44 PM
06-11-2015 09:48 PM
by Just for Cuts
13 2,284
Anyone need help? I have...
biglee
05-06-2015 12:22 PM
06-10-2015 01:45 PM
by holymoly
15 2,981
Hello from the GREAT...
gbfarmsllc
06-09-2015 11:10 AM
06-10-2015 01:29 PM
by Sprinkler Buddy
2 1,906
Hey guys and gals, I'm...
Joeyhall
06-03-2015 03:54 PM
06-08-2015 02:15 PM
by chris2500hd
8 2,155
Mowing Bermuda...
Mr. Mow
06-02-2015 12:45 PM
06-08-2015 12:45 PM
by Steve
12 2,313
Hey Guys
PrattLandscaping
06-07-2015 06:37 PM
06-08-2015 12:23 PM
by Steve
2 1,923
Share your stolen...
SGL1
05-27-2015 09:05 PM
06-08-2015 11:54 AM
by Steve
25 2,870
Hello there My name is...
zwalk1839
06-04-2015 11:10 PM
06-08-2015 11:52 AM
by Steve
4 2,035
Laid off oil field...
Mr. Mow
05-30-2015 09:03 AM
06-08-2015 06:20 AM
by Mr. Mow
4 2,151
How do you find one time...
Greg'slawnandlandscape
06-02-2015 09:57 PM
06-05-2015 09:49 PM
by avetslawncare
4 2,068
» Popular Tags
ad landscaping advertising aerocore apartment bid apartment lawn care estimate applying billy goat brushcutter blowout bob villa bush commercial contract help deliquentaccounts demonstration design ditches equipment dealer equipment rental facebook flyers foreman free lawn care hardscapes hiring how to husqvarna increase customers landscape landscape services landscaping landscaping training lawn aeration lawn care lawn care busines plan lawn mowing marketing marketing secrets more customers business mulch new business ordinance patio install per hour charge per hour service plowing pricing profit on employee scag scripts secrets to landscaping sell the vision seo shell shreaded small engine repair snow plowing sq ft square foot steep lawns swzt trailer trailer mate pro tree trimmer rack up sell employee web design website website design winterization wood
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 02:50 AM.


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

All times are GMT -5. The time now is 02:50 AM.

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