Lawn Care Pricing Strategy is based on structure and customers
Choosing a pricing model for a new (or even existing) lawncare company can seem super intimidating. Believe me, I've had multiple clients ask the same types of questions:
"Should I charge hourly?"
"Do I charge differently for different types of lawns?"
"What is a fair price to charge for lawn mowing?"
Let's walk though the most common pricing methods for small to medium size lawncare companies, and then I'll give your company some pointers on how to grow your company!
Hourly Rate for Individual Operators
For the solo lawn care professional or even employer with a few employees, the hourly rate model offers a blend of simplicity and control.
This approach requires you as a business owner to have a clear understanding of how long jobs will take. There are two potential pitfalls with this method:
- Customers can feel "ripped off" when they see how many billable hours can go into a job
- Unexpected issues (aren't all issues unexpected?) can cause the final bill to skyrocket
These issues can generally be avoided by just setting proper expectations and helping the customer understand the value you're providing.
Some pluses being that it's straightforward for customers to understand and for you to provide estimates with.
Charging for Output, Not Hours
On the flip side of hourly billing, is pricing based on you or your team's output.
This billing method is simply exemplified: the customer wants their lawn mowed and edges trimmed — here is their invoice (regardless of how long it takes and how experienced the employee is):
- Lawnmowing: $50
- Edging: $25
Just as the method is simple, as are the positives and negatives — the customer is always billed the same amount, and the customer is always billed the same amount
The reason this prcing model is a double entendre (sorry, I've always wanted to use that in a sentence) is because the customer will never be surpised when they see their bill, but you have the potential to lose money if you take longer than expected — even if it's not your fault.
Property Grading for Diverse Lawns
This is basically a version of the previous method of pricing, just with wiggle room for larger or more difficult yards.
This method allows you to set rates based on the size and complexity of the property, ensuring fairness to your working time whilst still allowing for transparency in your pricing.
An example would be setting a a price of $45 for a basic mowing, but only for properties under an acre and with no gates.
The negatives of this method are the same as the previous method, but with the added possiblity of needing to explain to a client why you're charging them more than someone else
Having a difficult time getting new customers for your lawncare company?
Your pricing model is fair, your work is excellent, and your current customers are happy... so why aren't you getting more customers?
Check out this article on how to do online marketing for a lawn care business
Also, I specialize in web development, marketing, and consulting for lawncare companies specifically. Wanna learn more? Click here!