Pricing a lawn care job correctly is so important as if you price too high you risk losing a customer and if you price too low you are leaving money on the table. Here are some ideas on how to price a lawn mowing job.
Start by walking around the property to get a clear impression of its size. Take note of the distance between the customer's lawns and where you will park your truck. Also look at the lawn's shape and note any obstacles that will be difficult to get around.
Now try to estimate the total time in minutes that it would take one worker to complete the lawn.
The next step is to multiply the number of minutes that you have calculated by one dollar. This rate is seen by lawn care businesses in the US as leading to a healthy hourly rate of $60, however you will need to adjust this rate to suit the market in your area. You should also have a minimum price for lawns that will take less than 20 minutes to allow for driving and loading time.
Don't let your clients know that you are pricing their lawn by the hour. If you say it will take an hour and they catch you leaving after only 40 minutes then it gives them a good case to complain about your service and price.
You should also not make the mistake of pricing too low to compete. Low pricing at rates that are barely profitable is bad for the industry overall. If you start pricing low it will be hard to raise prices in the future and when you do raise prices you would not like it if some newcomer to the industry undercuts you. Competing on quality service instead of price is the best approach.
Also bear in mind that the kind of customers who are attracted to the lowest price offer are often the worst kind. They won't appreciate the other positive aspects of your service and they won't hesitate to move on to the next low priced lawn care operator that comes along.
Being able to call a price that is higher than the market rate takes experience and confidence. If you have a strong brand and you can demonstrate your knowledge of lawn care to them then by all means go ahead and try.
Pricing a lawn job correctly and profitably requires skill and technique and the ability to set a price, and close the deal at that price can set an exceptional lawn care professional apart from the rest.
Tuesday, March 17, 2009
Wednesday, March 11, 2009
Advertising a Lawn Care Business
Advertising is a big way of promoting your lawn care business. Apart from good customer service which results in positive word of mouth and referrals, one needs to look at other avenues of advertising their lawn mowing business. With some methods being free and others being costly, you will need to decide on a budget and know what amount you are prepared to spend on advertising your new lawn maintenance business.
Here are some advertising avenues to consider:
The Web
Having a company website does not only give a professional outlook to your existing customers but also offers a means of advertising your service to thousands of people browsing the web. There are many sites to post classified advertising such as Craigslist and relevant local directories where you can list your service free or for a small charge. You can also exchange links with other websites of similar interest i.e. home services or cleaning companies who target businesses and residential houses.
Newspapers and magazines
It is definitely worth advertising in your local newspaper. This will reach readers in your local area, bringing in new business and enhancing your profile among your existing customers. Magazines although costly, can also be a good advertising option in the sense that one can choose a trade magazine to advertise in to reach their target market (a local gardening magazine for example).
Flyer's and Pamphlets
Another good marketing approach would be to print some professional designed flyer's or pamphlets and stick them under car window screens outside hardware shops and plant nurseries or your local grocery store. Giving them directly to customers is the best way if possible as it gives you a chance to chat to them and try to form a relationship.
Branding and Labeling
Be seen when you are out and about on your daily business. Get personalized magnets designed with your company logo and contact number for your vehicles. Ensure that your machinery and uniforms are labeled with your company branding.
The Media
Radio and television advertising can be very costly but could be worth every penny spent. Hundreds of people will hear your advertisement and associate you with your trade. Try and participate in radio talk shows that concern your business type and use competitions and specials to encourage people to contact you.
Competitions and Specials
Why not hold a competition for every person who signs a new contract. Prizes can include free services or other gifts. Competition stands can be put up at your local grocery store or garage.
Cold Calling
Another way to make a good impression is to call on houses or businesses in your area. Try and make an appointment to introduce yourself but if that is not possible, ensure that you are well presented and explain that you would like to leave your business card with them should they require your lawn mowing services in the future. Do not come across as being pushy or unprofessional.
Referral Rewards
Offer your existing clients a reward for every new customer that signs up as a result of their recommendation and referral. It could be cash or a discount on their service or whatever you feel would encourage your client to make the effort.
Fellow Business Contacts
Attempt to establish good relationship with other service businesses in your area such as pool maintenance business, pest removers, house cleaning services and window cleaners. Discuss a referral system with them whereby each of you can pass on the other’s business card to their existing clients.
There are many ways to advertise a lawn care business and you won't have the budget to try every method right from the start. Start off by looking at what your competitors are doing as they have probably tested all the options over their years in business. Copy their methods but don't copy the style of their campaigns so you stand the best chance of standing out in the marketplace.
If you try all of the various advertising methods for your lawn care business and test them to see which methods work well, then you will be well on the way to providing your company with a steady stream of enquiries that can allow your business to grow.
Here are some advertising avenues to consider:
The Web
Having a company website does not only give a professional outlook to your existing customers but also offers a means of advertising your service to thousands of people browsing the web. There are many sites to post classified advertising such as Craigslist and relevant local directories where you can list your service free or for a small charge. You can also exchange links with other websites of similar interest i.e. home services or cleaning companies who target businesses and residential houses.
Newspapers and magazines
It is definitely worth advertising in your local newspaper. This will reach readers in your local area, bringing in new business and enhancing your profile among your existing customers. Magazines although costly, can also be a good advertising option in the sense that one can choose a trade magazine to advertise in to reach their target market (a local gardening magazine for example).
Business Directories
Business directories such as the Yellow Pages are often the first place that people look when searching for a local service provider. These customers are ready to buy and they typically only call between one and three businesses before making a decision on which ones they want to meet with for further discussion. It is essential that you do everything to make your advertisement stand out from the others so that you get the calls.Flyer's and Pamphlets
Another good marketing approach would be to print some professional designed flyer's or pamphlets and stick them under car window screens outside hardware shops and plant nurseries or your local grocery store. Giving them directly to customers is the best way if possible as it gives you a chance to chat to them and try to form a relationship.
Branding and Labeling
Be seen when you are out and about on your daily business. Get personalized magnets designed with your company logo and contact number for your vehicles. Ensure that your machinery and uniforms are labeled with your company branding.
The Media
Radio and television advertising can be very costly but could be worth every penny spent. Hundreds of people will hear your advertisement and associate you with your trade. Try and participate in radio talk shows that concern your business type and use competitions and specials to encourage people to contact you.
Competitions and Specials
Why not hold a competition for every person who signs a new contract. Prizes can include free services or other gifts. Competition stands can be put up at your local grocery store or garage.
Cold Calling
Another way to make a good impression is to call on houses or businesses in your area. Try and make an appointment to introduce yourself but if that is not possible, ensure that you are well presented and explain that you would like to leave your business card with them should they require your lawn mowing services in the future. Do not come across as being pushy or unprofessional.
Referral Rewards
Offer your existing clients a reward for every new customer that signs up as a result of their recommendation and referral. It could be cash or a discount on their service or whatever you feel would encourage your client to make the effort.
Fellow Business Contacts
Attempt to establish good relationship with other service businesses in your area such as pool maintenance business, pest removers, house cleaning services and window cleaners. Discuss a referral system with them whereby each of you can pass on the other’s business card to their existing clients.
There are many ways to advertise a lawn care business and you won't have the budget to try every method right from the start. Start off by looking at what your competitors are doing as they have probably tested all the options over their years in business. Copy their methods but don't copy the style of their campaigns so you stand the best chance of standing out in the marketplace.
If you try all of the various advertising methods for your lawn care business and test them to see which methods work well, then you will be well on the way to providing your company with a steady stream of enquiries that can allow your business to grow.
Monday, March 9, 2009
Independant Lawn Care Start-Up VS Buying an Existing Business
When entrepreneurs first decide to enter the lawn care business one of the first decisions that they have to make is whether to buy an existing business or go with their own independent start-up right from scratch. There are advantages and disadvantages to buying an existing lawn care business as opposed to starting your own. One needs to consider the following pros and cons:
Advantages of Buying an Existing Lawn Business:
1) There is naturally a lower risk in buying an existing successful business than starting a business of your own which has no reputation.
2) With an existing business the staff usually stays with the company and therefore you would not need to do any employment selection and training. This offers peace of mind in that the employees know their responsibilities and the day to day running of the business and the new owner can slowly fit in with the way that things are done and decide if changes need to be made.
3) The suppliers of the business are also in usually in place and therefore one does not need to be too concerned at the start about who would be the best companies to contact when it comes to buying lawn maintenance equipment.
4) If the existing business is well known and established, it can usually continue to generate a profit fairly soon after the take over of ownership without any hindrances or set backs usually experienced by new businesses that are less established.
5) The equipment is in place and apart from a few services or upgrades, business can continue without much delay from the hand over.
6) Contracts and paperwork are usually in place and apart from a few changes you would not need to have this documentation drawn up from scratch.
7) The business’s tax paperwork and documentation should be registered and up to date.
8) Lastly, and perhaps most importantly, with an existing lawn mowing business you will usually inherit a solid base of customers who should stick with you if you make sure that you continue to service them at the same level or improve on the previous owners service level.
Disadvantages of Buying an Existing Lawn Business:
1) If the existing business has not got a very good reputation or the owner did not have a professional mannerism, it could make the marketing and advertising of the new ownership difficult to breakthrough the mindsets of the customers.
2) The current employees may have bad habits and not work well as a team which you would only realize in time after the take over has been completed. This would mean implementing new procedures or replacing some staff members, which could be a lengthy and costly exercise for the business.
3) Old equipment could be a strain on the business cash flow. Repairs and replacement of equipment could hinder work performance and turn around time.
4) If the buyer does not have experience in this industry, he could pay too much for the business which would result in lower profit and higher expenses than expected. It is important to acquire a new lawn care business for the right price, otherwise you may as well use the money that you have to invest in your own independent business.
5) Should you wish to change the company logo or slogan it could be a very costly affair as new documentation would need to be printed, business cards, equipment branding and labeling etc.
6) There may be outstanding debt or tax due from the business that you were not aware of at time of hand over. Make sure that the seller is being transparent on all aspects of the business and that you are fully informed of what you are getting into.
As discussed above there are advantages and disadvantages to everything. It is very important to ensure you have done your research and know what risks are involved either in starting up your own lawn mowing business or purchasing an existing one. Professional advice and solid independent research is always highly recommended either way.
Advantages of Buying an Existing Lawn Business:
1) There is naturally a lower risk in buying an existing successful business than starting a business of your own which has no reputation.
2) With an existing business the staff usually stays with the company and therefore you would not need to do any employment selection and training. This offers peace of mind in that the employees know their responsibilities and the day to day running of the business and the new owner can slowly fit in with the way that things are done and decide if changes need to be made.
3) The suppliers of the business are also in usually in place and therefore one does not need to be too concerned at the start about who would be the best companies to contact when it comes to buying lawn maintenance equipment.
4) If the existing business is well known and established, it can usually continue to generate a profit fairly soon after the take over of ownership without any hindrances or set backs usually experienced by new businesses that are less established.
5) The equipment is in place and apart from a few services or upgrades, business can continue without much delay from the hand over.
6) Contracts and paperwork are usually in place and apart from a few changes you would not need to have this documentation drawn up from scratch.
7) The business’s tax paperwork and documentation should be registered and up to date.
8) Lastly, and perhaps most importantly, with an existing lawn mowing business you will usually inherit a solid base of customers who should stick with you if you make sure that you continue to service them at the same level or improve on the previous owners service level.
Disadvantages of Buying an Existing Lawn Business:
1) If the existing business has not got a very good reputation or the owner did not have a professional mannerism, it could make the marketing and advertising of the new ownership difficult to breakthrough the mindsets of the customers.
2) The current employees may have bad habits and not work well as a team which you would only realize in time after the take over has been completed. This would mean implementing new procedures or replacing some staff members, which could be a lengthy and costly exercise for the business.
3) Old equipment could be a strain on the business cash flow. Repairs and replacement of equipment could hinder work performance and turn around time.
4) If the buyer does not have experience in this industry, he could pay too much for the business which would result in lower profit and higher expenses than expected. It is important to acquire a new lawn care business for the right price, otherwise you may as well use the money that you have to invest in your own independent business.
5) Should you wish to change the company logo or slogan it could be a very costly affair as new documentation would need to be printed, business cards, equipment branding and labeling etc.
6) There may be outstanding debt or tax due from the business that you were not aware of at time of hand over. Make sure that the seller is being transparent on all aspects of the business and that you are fully informed of what you are getting into.
As discussed above there are advantages and disadvantages to everything. It is very important to ensure you have done your research and know what risks are involved either in starting up your own lawn mowing business or purchasing an existing one. Professional advice and solid independent research is always highly recommended either way.
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