Pricing lawn care services – The Importance of Getting It Right
I always feel that the pricing of lawn care services is a little like the card game Blackjack. You want to go as high as you can without going bust and losing the customer altogether.
What is the best price for your services? I would say that it is the maximum price that a customer is willing to pay for your services without having them decide that it is too expensive. Makes sense right? The only problem is that it is difficult to identify that magic price level, and the magic price level will be different for every prospect.
It can take time to find the ideal pricing level for the lawn service that you are providing. But it is important that you do keep working on fine tuning your prices so that you can be hitting the ‘sweet spot’ as often as possible. Let’s look at the dangers of pricing at a level that is too high or too low and why it is so important that you aim to get it right.
Pricing Too Low is Dangerous
If you set your lawn mowing prices too low then you are really missing out. You are leaving money on the table and settling for less than you are worth.
Many entrepreneurs enter the lawn care industry and feel that they have to compete on price to establish their business. They forget that price is only one of many factors that consumers take into account before making a buying decision. It is better to try and differentiate your business in other ways.
The consequences of doing work for minimal pricing are not good. For one thing, you will be doing damage to the industry in your local area and your competitors will resent you. In the lawn care industry those that price their services at ridiculously low levels are called ‘Lowballers’ and it is seen as the mark of a real amateur.
Remember that you are going into business to make money. If your prices are so low that there is barely any profit in it for you then you may as well stick with your day job. Don’t think that you will be able to make it up later and raise your prices either. If you try this your customers are likely to dump you and move onto another low priced service. In my opinion, customers that seek out low priced services are often the worst kind of customers to have.
Maybe you will still struggle to get customers. Many people associate low prices with poor quality and may be suspicious of what you are offering. I have heard people admit that when they are looking for a service provider they will generally call three or four in ‘The Yellow Pages’ and go with one that they feel is in the middle of the range of prices available.
