Revised biz strategy

[Dmk]

I am thinking of trying to downsize the goals for my business, although I am not sure. For mowing and leaf cleanups I generate about $50 per man hour, other labor goes out at $40 per man hour. I am thinking of upping all prices to $50 per man hour, getting rid of some of the lower paying and picky clients, along with the 11 dollar an hour knuckleheads you need to service some of these accounts during peak times. By dealing with a smaller number of clients in a small geographic area, travel time and headaches are lessened. Keeping the highly payed and easy to deal with workers leaves even fewer headaches. My new motto may be small and extremely profitable. By raising prices, I will lose some clients, but thats fine, as that is the goal. I am thinking of more free time, less b.s. and easy living, with a good salary, rather than constant reinvestment of earnings and potential for a big payoff, why not get a bigger payoff daily? Any thoughts?

[Scaper-S2k]

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That's the way to do it!!

I will also add one thing for you to consider. Yes, take the high paying jobs, drop the rest. But don't limit your area too small. Doing so can cause problems. If someone local comes in and does good work for $40 a man hour, you have problems. No reason not to drive a bit if you keep a bunch of high paying accounts at that farther destination clumped together.

[Dmk]

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Part of my increased prices will not be reflected because I will be able to buy better tools...my mowing crew will go from a 52stander and 48wb....to a 52stander and 60lazer....that will bring profits up big time. With better people, my machines won't get beat as bad...maybe a brown bed edger also. Is $50 too high for general labor though?

[Scaper-S2k]

reply

Depends on your clients. For many residentials, $50 per man hour is pushing if for general labor.