I have a customer of mine that I have been mowing for 4 yrs. This year I decided to raise the price. I kindly went over to his house and told him that I raised the price from $20 to $30. I also told him that gas prices were going up and I recently bought a new ztr and some more commercial equipment, I also told him that you have also 2 acres. I battled him for at least 20 minutes. Finally I was fed up with him and just told him $20. What should I do? Should I drop him in hopes of picking up more yards or just tell him straight up this is the price and that is it?
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uncooperative customer
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If he won this one he will win the next.Tell him take the price (that is very competitive)or take a hike.You will find more work.
Man at $10 an acre you would put me flat out of buisness.god thats cheap.Thats my $.02 any way.Nothing is ever perfect,you just run out of time.
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$10 an acre? move to Ohio I'll give you all the work you can do in a week. min. $40 an acre and thats only if its over 5 acres under 5 acres its $50. You gotta get your prices up. I would go back and tell the guy the cost will be $50 an acre but since you have been doing it for $20 that you will ONLY raise it to $30 for 1 yr only. Also don't explain to your customers that you bought new equipment and your ins went up etc. They don't care and its none of there business. When they buy a gallon of milk the clerk does'nt explain why it cost more it just does, its call cost of living and it 's went up every yr. since 1931
Mac
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What kind of service are you supplying for $20 an acre, this is no where near enough money. How do plan on making ANY profit after travel time, equipment and vehicle expenses, insurance, fuel, etc.
Unless you're doing volume acreage biz, you're nuts to be doing it for this price.
If you've read many of the posts concerning pricing acreage, the average is around $60.Rustic Goat
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I have one of these. She's 80 something and a real tight ass. This past summer I started droping hints that I would be raising my rate for her next year and each time she would start crying like a little school girl. So near the end of the season I told her that I have accounts her size @ $65. While she cryed I noticed she was peaking around her tissue to see my reactions. I told her to start checking the adds for someone else for next year. I know it's not a money thing to her, it's just her trying to get by with not paying more. I don't like to tell a customer to kiss off so I always try to leave them and myself a way out, kind of like leaving the door open. This is not something that happens much so when I must confront someone I try to get past the shock and do what's right. I also have 2 other little old ladies in their 80's that I cut for Half Price. Not because I have to, but because I want to. We must be true to ourselves. No one on this forum can tell you to drop a customer or charge higher prices. Only you know what's right for you. However I must say, that the reason I'm in this business is to avoid being told how much money I can make in my life.
Bill Work hard and make it look easy
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This may be a bit harsh, but...
You may want to consider an hourly job (Home Depot?) so you can have some spending money, because you may not be cut out for running a business - unless you particularly enjoy the taste of Alpo.
You can barely cover your operating costs at that lowly rate, let alone make a profit. That yard should be absolutely no less than $50, and could be even higher.
Let this thread be your wake-up call. Decide whether you have what it takes to make money in your own business (dealing with customers, knowing your costs so you can make sound business decisions, and standing up for yourself). There are alternatives...
We're here to help, whichever way you decide.
Mort
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Mort is right. YOu are losing money before you even show up to do the job.
You need to calculate your costs and re-evaluate ALL your prices if they are priced comparable to this one.
Also, NEVER tell a client why your price is going up, only that it is. Take it or leave it.
This guy is hosing you and he knows it.
Good Luck!Jeeps are like women.....much more fun with their TOPS OFF!
A society that rewards based on need creates needy citizens. A society that rewards based on ability creates able ones.
Do you guys think Obama is going to kiss us after he is done with us or is he going to put on his belt and head out the door?
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This guy is taking advantage of you and he knows it. Hes probally laughing at you behind your back. Hes taken advantage of your lack of Knowledge and your experience in the industry. Hes taking food off your table and shoes off your kids feet. Id write up an estimate for $105.00 and ask him to sign it if he wishes your services any further. These parts 2 acres goes for about $150.00 0r about $65 per. I can get $100 an acre in some cases. A bid of 105 would be almost impossible for me to beat or would it for any other legitimate competition in your area. If he signs it great ,if not dont sweat it. Either way,DONT shake his hand because i assure you hes no friend of yours.
mikeSENIOR MODERATOR LSF COMMUNITY CONTROL CORDINATOR
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I'll have to agree with what Mike said. Granted I am still learning but one things for sure that amount of land for that money. No way!! Had another LCO ask me in Septmeber to give him a price for a 3 acre track. Road out there look at it drove the drive way going to the house and all that jazz. Well ended up tell this cat that for him i would do it for $180. Now if the homeowner asked me it would have been $230 easy. It would have taken me just over 2hrs to do. Damn right its going to cost you for me to do anyones property. Insurance and fuel alone is bad enough.
Chris
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Re: uncooperative customer
Originally posted by DixieChopper_boy
I have a customer of mine that I have been mowing for 4 yrs. This year I decided to raise the price. I kindly went over to his house and told him that I raised the price from $20 to $30. I also told him that gas prices were going up and I recently bought a new ztr and some more commercial equipment, I also told him that you have also 2 acres. I battled him for at least 20 minutes. Finally I was fed up with him and just told him $20. What should I do? Should I drop him in hopes of picking up more yards or just tell him straight up this is the price and that is it?
This is a perfect example of why some people should not be in this business. $10 an acre is more like a hobby than a business.
My advise is tell your customer that you are going to charge him $60 an acre. Don't ever back down from a customer or let them tell you how to run your business. Pick up your balls and tell him the way it is going to be.“veni, vidi, vici.â€
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Well, I've noticed there's been no other posting from Dixiechop_boy since the original. Did we scare him off, or does he have that much work to do at $20/acre he doesn't have time.
It's nice if folks starting these threads to respond, there've been numerous questions generated and no answers yet.Rustic Goat
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