Setting Your Prices – Lawn Care Business Blog Basics
Pricing is very important in any business today because it’s one of the biggest factors determining if you turn a profit or not. Many times lawn care business owners make the mistake of under-pricing their work. Especially early in the life of a new lawn care business, the owner feels a pressure to pick up as many new accounts as possible. And rightfully so, you have expenses and overhead looming above you. This pressure can cause you to drive your prices very low, sometimes even too low to turn a profit. In fact, we are all humans and due to the fact that we feel “something is better than nothing”, we fall Into the temptation of under-pricing.
Many people who start a lawn care business make a mistake of going into it without a proper knowledge of what is involved and what it actually costs. It is important to note that when starting a business, you need to actually sit back and calculate how much you need to charge so as to make a profit. A reality check comes most times at the end of the year when you compile together your income tax and you realize how little cash you have leftover. This dilemma is just one of the challenges that we confront here on my lawn care business blog, lawntrepreneur.com.
Still another problem you could start to face is that your reputation for cheap work will spread. Only undesirable clients could start to patronize your work. Clients that just want their work done sporadically or have outrageous expecatations. Trust me, there are plenty of people out there who expect the most work at the cheapest prices. That may a great deal for them, but this is exhausting for a lawn care business owner.
So instead of taking the route of under-pricing so as to get customers for your Lawn care business, it is important you work hard to strengthen your brand and have a good reputation of always delivering. Building a brand includes presenting yourself and your company in a professional light. All throughout my lawn care business blog i preach the importance of branding in all it’s forms. Send a message that you are an industry leading expert in Lawn care. High-quality customers are known for generally hiring people who are experts and are professional especially to their eyes. They are willing to pay more for this expertise and professional appeal.
When I first started out I was shocked at how customers were willing to pay more to my competitors, seemingly only because they had fancier trucks and uniforms. What I was missing was that the customers were buying into their branding. A professional brand will not provide the cheapest price. Of course getting to this level is easier said than done because in the beginning you must take whatever work you can find. However, as you increase business make it a habit of regularly weeding through your customer base to replace the yards that don’t pay enough or take up too much of your valuable time. To learn specifics of price setting and many other aspects of starting a lawn care business, i highly recommend you get the definitive guide on lawn care business “How I Bootstrapped a Six Figure Lawn Care Company”.