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How to Set the Right Prices for Lawn Care Services

setting the right prices for lawn care

Pricing is a challenge for any business, but new green industry business owners are especially aware of this struggle because of the seasonal nature of the work. On the one hand, you need to set prices that allow you to have an income during the down months, but on the other hand, you don’t want to overcharge and send customers to your competitors. How can you find that sweet spot in terms of what to charge for lawn care services?

How to establish prices

When it comes to what your local community is willing to pay for lawn care services, you will probably find the range is already established to a certain degree. Deviate too far above the established rates for your area and customers will balk. You should still take a moment, however, to determine exactly what your rates should be to cover your costs and needs. To do this, first ask what are your business’ overall expenses, from insurance to employee labor costs to equipment. Now break that figure down into an hourly rate that you need to charge to meet those expenses.

If the hourly rate you come up with to cover your green industry business expenses is too high, then you need to re-evaluate those overall expenses to see if there is a way to cut costs.

How to cut business expenses

There is no way to get around business expenses. Whether it is upgrading equipment as it wears out or paying employees as your business grows, you won’t be able to pocket all of the income your business brings in. But you can make smart decisions to keep your overhead lower. For instance, equipment is a vital part of a lawn care business. You need the right tools for the job, but that doesn’t mean you have to have the latest or greatest. Don’t overspend on the newest gadget, just make sure that you have what you need to do a quality job.

Next, be sure you are working smart. You may think when you are small and just starting out that doing all the work yourself is the best cost-saving method. And it can be with some planning. For instance, if you don’t route your work schedule properly to save fuel, you are wasting potential income. Planning your day to work in an efficient manner is the smart way to work and boost your revenue.

Not certain how to best compete price-wise with your competitors? Spring-Green has 40 years of experience that can help guide you in terms of setting the right prices for lawn care services and so much more. Learn more about how Spring-Green can guide you and your business towards achieving a stable and sustainable income. Call 1-800-777-8608 or visit us at www.growmygreenindustrybusiness.com.