Tuesday, March 17, 2009

How to Price a Lawn

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.