Whether you're a new owner of a lawn care business plan or a constantly smaller owner, you're probably worried about how you set the prices for your services.
You want to know what your price is high enough to make money but low enough to be competitive in your market. This is like a walk on a knife-edge: too much and you pay off, too little and there is no profit.
Go to the river. If everyone bills you for about $ 50 (check the websites, door signs, etc.), there's money in them. Go with the middle to the upper end of the spectrum that you see. If it is not remotely comparable (for example zero-turn mowers), you probably need to base your prices on companies that work closer to your job.
If you are new to our software, use the Notes app on your phone. Just follow them somewhere. The most important figures in your company are the amount you receive per hour of work sold.
You may find that many trees take longer, or that Mr. Jones keeps his back door locked and you have to wait for him to open it and put his dogs away. That way, you can set a reasonable price if you renew the services with it next year. You will also know this when you rate new customers, so you can specify a higher price to deal with the problems, or to find that they cause more problems than they are worth.
These are the basics
Time tracking is a fundamental building block for intelligent pricing decisions. Guts and instincts are great, but they do not replace sound decisions made from good data. Track your time so you know that you have set the appropriate prices for your services. Traced time means more money in your pocket.
You want to know what your price is high enough to make money but low enough to be competitive in your market. This is like a walk on a knife-edge: too much and you pay off, too little and there is no profit.
Copy all others
You do not usually hear this on our blog. Usually, we tell you to walk, talk, think, and completely different from your competitors. Prices, especially if you enter a market, are largely determined by the fees of everyone else.Go to the river. If everyone bills you for about $ 50 (check the websites, door signs, etc.), there's money in them. Go with the middle to the upper end of the spectrum that you see. If it is not remotely comparable (for example zero-turn mowers), you probably need to base your prices on companies that work closer to your job.
Right from the first day (or today!)
Once you have sold some lawns, you want to make sure that you actually make money from the price structure your market uses. Set yourself up for success and outperform the competition: track your time.If you are new to our software, use the Notes app on your phone. Just follow them somewhere. The most important figures in your company are the amount you receive per hour of work sold.
Verdicts
If you know how long your jobs last and how much you earn per hour, you can check how similar your "problem characteristics" are.You may find that many trees take longer, or that Mr. Jones keeps his back door locked and you have to wait for him to open it and put his dogs away. That way, you can set a reasonable price if you renew the services with it next year. You will also know this when you rate new customers, so you can specify a higher price to deal with the problems, or to find that they cause more problems than they are worth.
These are the basics
- Track your time from the first day.
- Convert this time data into earnings per hour worked.
- Use this data to determine properties that will not yield you more than $ 40 per hour worked. Find out what's the same with these features and update prices accordingly.
Time tracking is a fundamental building block for intelligent pricing decisions. Guts and instincts are great, but they do not replace sound decisions made from good data. Track your time so you know that you have set the appropriate prices for your services. Traced time means more money in your pocket.
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