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Thread: Minimum Price

  1. #16
    Senior Member happymowin's Avatar
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    Default Re: Minimum Price

    Quote Originally Posted by fairdinkum View Post
    Hmm I typed my response then realised this is in the public forum. Lets just say that (for once) I mostly agree with mr happy on this with slight variations.

    cool, FD.

    i know theres a few around who think im right on the button with a lot of things, but they dont wish to get involved, or get in trouble for their opinions either, lol.




    "If I did not have an ego I would not be here tonight
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    If you did not have an ego you might not care the way you dressed
    If you did not have an ego you'd just be like the rest

    Ego is not a dirty word
    Ego is not a dirty word
    Ego is not a dirty word
    Don't you believe what you've seen or heard



  2. #17
    Senior Member AJD Mowing's Avatar
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    Default Re: Minimum Price

    This is a good one for you to sing

    AJD Mowing Giving Back Your Life

    http://www.ajdmowing.com.au/

  3. #18
    Senior Member Lawn Mowing Professionals's Avatar
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    Default Re: Minimum Price

    Your minimum charge should be what you are happy and confident to charge. It should never be based on your competitors!

    I Focus on a marketing strategy over price and guess what... i'm not a commodity to my "target market"... If I get a customer who shops purely on price, there not a client I want and therefore not part of my target market.

    I find this topic interesting...

    Someone charges $10 minimum, $35 minimum, or $45 minimum... it's all for the "similar" type of work and time. What makes the difference? just one thing... the business owner. Do you think there is someone in our industry with a $100 minimum? I can almost guarantee there is somewhere!

    As most know, i target a very small radius of 2 very close suburbs... lately, i've been targeting "other" suburbs that are around 5K's away... I have the attitude that i don't need the work and as i have to travel I will charge "X" amount more for the inconvienience. Well, my findings are I am still converting the same amount as if i was doing a compariable size block in my target area (but charge more).

    I will use the car market example ... There is a market for Hyundai, BMW and Ferrari - There is a reason why a hyundai is $20,000, BMW $80,000 and Ferrari $500,000

    Although hyundai is "most likely" selling the most cars... Is this a good position in the marketplace? More cars to produce for less profit....

    You might even ask... how does BMW sell so many cars at 4 x the cost? Well, I can inform you it isn't based on PRICE... do some market research, identify niche markets, work out how they attract buyers to pay a premium and not be a commodity and apply it to your business.

    Why is it risky being Hyundai? because they are based on price and the "majority" are competing in this marketplace... guess what, there is Chery that now produce a $10K car... now that's low balling

    On a side note - Holden reported today that they are reporting a loss of $153 million...

    Another example is Franklins, Aldi, Coles and Woolworths... all provide food but all priced differently! Woolworths is the most expensive but have the largest market share... that must be luck! lol

    Position your business and focus solely on your business model... Do this and the economy, your prices, your competition will become irrelevant.

    You want another example... why can Coca Cola charge almost double the price over Pepsi and Coke still sells more cola!

    If you want more examples let me know!!! but it willl be a long report!

    Price is irrelevant to a smart business model that focuses on marketing!

    I am lucky that I came to the realisation at an early age and I fully embrace and understand the princible... "there is no money in what you do, all the money is in the marketing"

    Come on.... shoot me down

    Simmo.

  4. #19
    Member GQdude's Avatar
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    Default Re: Minimum Price

    My minimum is $30.

  5. #20
    Senior Member happymowin's Avatar
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    Default Re: Minimum Price

    lol, i agree wholeheartedly with simmo, although he uses more words.

    good examples simmo, im sure theres people who shop at aldi that wont or cant afford to go to woolies, then theres those who couldnt be bothered dealing with aldi and just shop at woolies cos they cant be bothered, and want a reputable supplier.

    also like your car analogy, i want to be the ferrari of the mowing world, not the cherry (maybe we call beer money bobs "cherry bobs" from now on?)


    but hey, you ARE a figment of my imagination, so there ya go, lol


  6. #21
    Senior Member happymowin's Avatar
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    Default Re: Minimum Price

    Quote Originally Posted by djkgrounds View Post
    I agree and disagree with that, regardless of how little or how much someone charges, its not good to bad mouth other businesses to clients regardless of the work they do. Word of mouth gets around quick, best to leave the bad mouthing to the clients themselves.

    I believe I dont charge that much compared to some other businesses as I am just starting out with not top of the range equipment but cheap equipment that does the job. But I also believe I do a good job in the end. When the money starts flowing I will start to purchase better equipment.

    djk, i reckopn you should charge now how you intend to finish

    why i say that, is how will you explain to customers after you buy "proper equipment" that youre gonna stick the price up $10-$20 ?

    your price should reflect what the job looks like WHEN YOU FINISH - if it takes you a little longer cos youre new or havent got the latest equipment, well, thats on you, but you should charge the right price from the start.

    from my experience, people ARE willing to pay top dollar for reliable service and a good job.

    charge more mate, you wont regret it later !!!


  7. #22
    Senior Member Lawn Mowing Professionals's Avatar
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    Default Re: Minimum Price

    Always start with the end in mind! I couldn't have said it better myself happy.

    This is why a business plan is vital to the clarity of the business owner and ultimately, the overall success. Once you start with the end in mind and reverse engineer the path "road map" you understand what you need to do and the path you need to take... the process is quite simple, there might even be 50 different paths that you can take to get to the goal/destination.

    mowing is a simple business...

    And if you start with the end in mind, you will quickly realise the best sale will be located there at the end... and that is the best sale of all... selling the business for profit

    I forgot most lawnies do this for lifestyle and self employed as a "job"

    I wonder how many have planned the sale of their asset before they started out?

    Ok, Ok... back to my corner with all this logic and common sense.... It doesn't seem like common sense is all that common after all lol

    Simmo.

  8. #23
    Senior Member djkgrounds's Avatar
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    Default Re: Minimum Price

    What I disagree and agree with what happymowin said was that he states, "theres cheaper guys around, but i hear they're not so reliable, some do a cr@p job, and some wont be here in 6 months to keep servicing your job".

    I think I unintentionally quote a lower rate through lack of experience, more so on larger jobs with more detail required (pruning, hedging etc. but still do a professional job. I take a lot of pride in my work even though I think I could have done a better job with better machinery, the clients are extremely happy with the work I produce.

    But also agree that some operators are really dodgy as well, which gives the good guys a bad image through their lack of professionalism. It takes a lot of time to rebuild trust with someone who has been stung before.

    My base charges are $35 (small), $45 (average), $55 (large) and it goes up from there. Price also goes up if the grass is higher than my boots. all including edging. And I usually mulch as well. 15% more to catch. Extra for any other work required.
    DJK Grounds & Gardens
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  9. #24
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    Default Re: Minimum Price

    Quote Originally Posted by Lawn Mowing Professionals View Post
    Your minimum charge should be what you are happy and confident to charge. It should never be based on your competitors!
    Simmo.
    Surprise i will disagree
    i agree that "Your minimum charge should be what you are happy and confident to charge" but unless you are in it for the life style then i have to disagree with "It should never be based on your competitors"
    you maybe happy and confident to charge $10 but if your competitors are charging $50 then unless you are doing it for a 'lifestyle' and not as a business then i think your nuts

    i can say without doubt that woolworths constantly monitor the pricing of coles and there other competitors
    Anything Ian says may or may not be garbage, it may also be his own opinion or it may not be his opinion at all, it may just be something he felt like stating anyone following his advice does so at their own risk and may be doing something Ian would actually advise against.
    And if you don't like what Ian has to say use the ignore function if you don't know how ask i will gladly tell you

  10. #25
    Senior Member Lawn Mowing Professionals's Avatar
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    Default Re: Minimum Price

    Quote Originally Posted by happymowin View Post
    cool, FD.

    i know theres a few around who think im right on the button with a lot of things, but they dont wish to get involved, or get in trouble for their opinions either, lol.




    "If I did not have an ego I would not be here tonight
    If I did not have an ego I might not think that I was right
    If you did not have an ego you might not care the way you dressed
    If you did not have an ego you'd just be like the rest

    Ego is not a dirty word
    Ego is not a dirty word
    Ego is not a dirty word
    Don't you believe what you've seen or heard


    Definition of Ego...

    1. A person's sense of self-esteem or self-importance

    2. The part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity


    I'll have what he is having!

    Simmo.

  11. #26
    Senior Member happymowin's Avatar
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    Default Re: Minimum Price



    oi, back in your box, simmo, lolol

  12. #27
    Member Redeye's Avatar
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    Default Re: Minimum Price

    Quote Originally Posted by djkgrounds View Post
    I agree and disagree with that, regardless of how little or how much someone charges, its not good to bad mouth other businesses to clients regardless of the work they do. Word of mouth gets around quick, best to leave the bad mouthing to the clients themselves.
    agree with this

    charge whatever you're comfortable with- lots of hard advice here with a "but" attached




    http://curraronggardening.com/

    "All sin is washed away in the Holy goodness of Beer"
    Book of Redeye, Psalm 69

  13. #28
    Dedicated Member Cranbourne Lawnmowing's Avatar
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    Default Re: Minimum Price

    I have a minimum of $30 but in my area most places are so small that a front yard can be done in less than 15 mins as a premium quality job. I agree with Happy aswell, some situations are different but no point wasting your time on jobs too small. I did that when I started out, spend 15 min driving to a job for 20 bucks aint worth it.

  14. #29
    Dedicated Member Cranbourne Lawnmowing's Avatar
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    Default Re: Minimum Price

    Quote Originally Posted by Lawn Mowing Professionals View Post
    Your minimum charge should be what you are happy and confident to charge. It should never be based on your competitors!

    I Focus on a marketing strategy over price and guess what... i'm not a commodity to my "target market"... If I get a customer who shops purely on price, there not a client I want and therefore not part of my target market.

    I find this topic interesting...

    Someone charges $10 minimum, $35 minimum, or $45 minimum... it's all for the "similar" type of work and time. What makes the difference? just one thing... the business owner. Do you think there is someone in our industry with a $100 minimum? I can almost guarantee there is somewhere!

    As most know, i target a very small radius of 2 very close suburbs... lately, i've been targeting "other" suburbs that are around 5K's away... I have the attitude that i don't need the work and as i have to travel I will charge "X" amount more for the inconvienience. Well, my findings are I am still converting the same amount as if i was doing a compariable size block in my target area (but charge more).

    I will use the car market example ... There is a market for Hyundai, BMW and Ferrari - There is a reason why a hyundai is $20,000, BMW $80,000 and Ferrari $500,000

    Although hyundai is "most likely" selling the most cars... Is this a good position in the marketplace? More cars to produce for less profit....

    You might even ask... how does BMW sell so many cars at 4 x the cost? Well, I can inform you it isn't based on PRICE... do some market research, identify niche markets, work out how they attract buyers to pay a premium and not be a commodity and apply it to your business.

    Why is it risky being Hyundai? because they are based on price and the "majority" are competing in this marketplace... guess what, there is Chery that now produce a $10K car... now that's low balling

    On a side note - Holden reported today that they are reporting a loss of $153 million...

    Another example is Franklins, Aldi, Coles and Woolworths... all provide food but all priced differently! Woolworths is the most expensive but have the largest market share... that must be luck! lol

    Position your business and focus solely on your business model... Do this and the economy, your prices, your competition will become irrelevant.

    You want another example... why can Coca Cola charge almost double the price over Pepsi and Coke still sells more cola!

    If you want more examples let me know!!! but it willl be a long report!

    Price is irrelevant to a smart business model that focuses on marketing!

    I am lucky that I came to the realisation at an early age and I fully embrace and understand the princible... "there is no money in what you do, all the money is in the marketing"

    Come on.... shoot me down

    Simmo.
    Ok......you either type really fast or you have way to much time on your hands.

  15. #30
    Senior Member Lawn Mowing Professionals's Avatar
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    Default Re: Minimum Price

    Quote Originally Posted by ian View Post
    Surprise i will disagree
    i agree that "Your minimum charge should be what you are happy and confident to charge" but unless you are in it for the life style then i have to disagree with "It should never be based on your competitors"
    you maybe happy and confident to charge $10 but if your competitors are charging $50 then unless you are doing it for a 'lifestyle' and not as a business then i think your nuts

    i can say without doubt that woolworths constantly monitor the pricing of coles and there other competitors
    Ian, look up marketing and you will see that market research is a major part of it.

    Ian, I love how you always "assume" the total opposite of my thinking...

    If my local competition charges $20, $35 or $50... why would i charge $10 when I value my time and i know how to market my business to "differentuate" myself to charge what i like and i know my break even points and what profits I want to target? I was implying, to charge more than the "artifical going rate" and charge what I am happy and confident to charge.

    And Yes, woolworths would always check the competition prices... to make sure they are charging more! It's a no brainer to me (and yes, i study this stuff), If they have identical prices and offer identical service, both will fail on a price war! Coles are dropping there "down down campaign" prices to compete with Aldi... Woolworths has lost marketshare but profits are strong! they are riding the wave before coles sells up in the coming months! (watch this space).

    My point is... if you do what everyone else is doing, your part of the majority. The majority of business owners fail! Why do they fail??? It's simple they are running there business to market conditions and being manipulated (refer to holden's 153 m loss example!!!) Stick to your business plan and goals... If the business model doesn't work, or there is no demand for your niche market... you shouldn't be doing business or you need to evolve.

    I will give an example... Sydney ferries was a large network until sydney harbour bridge opened (and many went bankrupt) the rail network was large for freight until trucks and planes become available.... the train network thought they were in the business of RAIL... if only they realised they were in the transportation industry, they would have invested into trucks and planes etc instead of going broke!

    This industry has alot of potential... the growth will be massive. Let's hope that acoles and woolworths doesn;t start up and dominate the industry! As long as there are people in all area's (lowballers, mid range and top end) we should be safe

    Since Happy wants to be the Ferrari of the mowing world... Does that mean i should now be focusing on selling Chery's? lol

    Ian, at least we can agree to disagree

    Simmo.

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