What to do when you underbid

[srlawnservice]

This probably isn't a big deal but sq ft pricing kind of got me on my most recent property.

I got a referral about a month ago on a 1/2 acre prop, my largest yet. My sq ft pricing method came to around 43 dollars per cut but there's plentiful edging and this one isn't flat. It is however, in the same neighborhood we target. I also screwed up and gave them a 45 dollar/cut on a bi-weekly basis because even in this neighborhood I figure there has to be a max. It is taking us 50 minutes to do this lawn on average (3 times) and we try to get bare bones minimum dollar/minute.

With only 4 or 5 cuts left in the season I'm going to finish out the commitment but how do I handle it next season?

1. Drop to weekly and go with 40/cut? roughly 140/month
2. Keep with bi-weekly and raise to 50/cut? roughly 100/month
3. Also thinking of going with a 40 full service bi-weekly and 30 bi-weekly front lawn only. Probably saves 20 minutes total over 4 cuts and gets my average back closer to dollar/min.
4. Since I swear by formulas do I just suck it up? Plus I'm only a few cents per minute under but the property is a PITA.

I'm leaning toward #3. I appreciate any help on getting around an underbid.

Tks...RL

[Scaper-S2k]

reply

It's nice to hear you are sticking with your commitment, that's good.

#3 sounds like some over lapping may go on if you ever have heavy growth, and cause problems. And it is only saving them a small amount anyway.

Not sure about your area, but if the bi-weekly cuts work out just fine, then just raise it to $50 next year and you will have it just like you want it. The other ways cause you to come back to the proper 2 more times per month. So you show up twice as much, but only for $30-$40 more per month......plus that figure you want still isn't ever reached with those methods. Know what I mean? Your are chasing the buck, but still making less than you wanted per hour.

If you like the bi-weekly, and you can do it in your area, I would raise the rate next year and explain your reasoning and tell them you won't raise their rates for 'x' number of years.



It looks as if you are shooting for one dollar a minute while on the site? So using your pricing method it should take 43 minutes and be $43. But becuase it takes 50 minutes, you want to charge $50? That's good, but give it a few more cuts and see if you shave off more time. Ya know, your formula may be right, but you haven't yet 'mastered' this lawn!

Do you lose any time by doing it bi-weekly? If so, how much? That would really have to be looked at to make a good decision.

Good Luck.





<<Don't Fear the Green!>>

[gmcarn]

reply

There are a few accounts I can think of, that I thought,after the first cut, that may be I under priced, but after about three cuts, the money was right on. The timing gets better each time I cut the account.<img src=icon_smile.gif border=0 align=middle>

[srlawnservice]

reply

Scaper: Good comments again...Tks.

Odin: You're exactly right about getting quicker as you do it more. I haven't exactly figured that one out yet. We have had lawns that took 28-32 minutes the first time and we are now down to 22 minutes....how does that happen?!?!

My decision thus far is to finish the year and try to raise the price slightly (3-4 dollars) next year. I've already gotten business from next door neighbor for next year so that would save on "mobilization fee"...

tks again,
RL

[George Deason]

reply

Formulas are for scrubs!
Gouge them on the easy cuts. Pad the bill. Be inventive man!

[srlawnservice]

reply

Wow, great post George, how informative.

GM, Strike one?

[Maddog]

reply

I also shoot for a dollar a minute. Most I can do this on some I can not. I donn't use the formula method that much but have gone back an checked some of my lawns using the formula. I have found that I may be pricing some on the low end. Example: I have one that I charge $35 for. When I measured and used a formula by square footage and degree of difficulty it comes out to $45. It usually only takes me 30 to 45 minutes to complete the lawn so $35 will work. Plus I realy do not think this area will take the $45.

By the way since I picked up this lawn the middle to the end of last year (first in this subdivision) I now have 7 lawns within a two block radius also the entrance. Just picked up another this week. Most of these people have mowers (riders) sitting at their homes. I didn't do any special advertising just the signs on my truck and doing the best job I can.

I may have got off the subject but what I am trying to say is you may have to price for your area and what you are capable of doing. Plus the potential may be there in the area for more work.

Like you and several other have said. You will usally get quicker as time goes on. This is because you know what works better on that lawn and get the feel of the lawn.



Wayne