RAISING LAWN PRICES IN 2024? BETTER WATCH THIS FIRST...
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- Опубликовано: 16 дек 2023
- ARE YOU RAISING YOUR LAWN CARE BUSINESS PRICES IN 2024? IT MAY BE A GOOD IDEA FOR YOU, BUT I WOULD ENCOURAGE YOU TO THINK THROUGH WHAT'S BETTER FOR YOU... BLANKET PRICE INCREASES OR INDIVIDUAL RATE ADJUSTMENTS. YOU RISK LOSING GOOD YARDS AND GOOD CUSTOMERS THAT ARE ALREADY PAYING THE TOP END OF WHAT YOUR MARKET WILL ALLOW IF YOU MAKE THE WRONG DECISION. THERE IS A MORE STRATEGIC APPROACH TO RAISING YOUR LAWN CARE BUSINESS PRICES IN 2024. PUT IN THE WORK THAT NO ONE ELSE WILL.
www.turfprosacademy.com is a mirror image of the business model Jonathan used to build Florida Turf Pros. If you're looking to start your own lawn care business, or if you feel like your lawn care business should be more profitable than what it is, this is the course for you.
My 3 Favorite Lawn Care Tools:
For Pruning: Dewalt Hand Saw amzn.to/3hCWYPJ
Best Multi Tool: Leatherman Skeletool amzn.to/34n8YlV
Best Boots: Merrell Foresbtound amzn.to/3sXaCoo
My Story:
In 2016 I had been in law enforcement for almost 7 years.
I was not in control of my schedule, I was hardly making any money, and I was away from my family working nights and holidays. I was capable of more,, and I was silently suffering. I knew I was selling myself and my family short.
I started Florida Turf Pros as a side hustle in 2016 before going full time in 2017.
My lawn business changed my life. I control my own schedule, my own income, and I am proud of what I have built.
On this channel you will learn the steps I have taken (and am still taking) to have a lawn care business that serves ME and my family’s needs.
We are a small owner operated company (2 full time mowing trucks/crews, and now a sod installation division).
If you are interested in starting a lawn care business this channel will provide the direction.
This really is a great industry to be in…
And I hope that by documenting my journey it will help you too.
I've received many messages from lawn business owners saying they actually NEED a blanket price increase this year because their margins are so low across the board. I understand, and in those situations it makes sense. This is the letter I have used in the past to send out BOTH bulk rate increases AND individual increases to our clients. RESOURCE: www.turfprosacademy.com/rate-increase-letter
We do have to replace very expensive equipment from time to time. It isn't free!
Best lawn channel around, always look forward to your videos. Thanks for the no nonsense content.
Wow, thank you!
U r the best johnathon!!!been doing this for 39 yrs
Yeah I have never done an across the board price increases. I only raise the ones I feel need to be raised. I look at it every year.
Why? Just why? I worked solo this season (only 9 months full time, 1 month semi full time, and 2 months @ 10-15 hours a week) And made almost 130K! (before taxes) Why would i increase prices? Do you realize how blessed i am? Thats what wrong with people. Greed. If you got a good thing going, dont take advantage of it.
Gross numbers aren’t telling of anything. Profit is what we’re after with raising prices.
If your service has provided value above the cost of service, you’ll have no problem raising prices even in a tough economy.
130K was your gross, not your net after taxed and expenses.
My minimum is now $50 a cut and weekly service ONLY for ALL new clients. I no longer offer 2 week service to new clients and raised my price on ALL existing 2 week clients or offered them a discount to go weekly, but not below my $50 minimum.
Not sure if I’m understanding your comment fully. The overall gross amount you are saying you have made in a year has nothing to do with increasing prices. It Has to do with how profitable each service visit is and if it is hitting your per man hour rate. So yes why increase a price on a lawn if you are making $100+ per hour if your rate is $90? As an example…That is greedy. But just because your annual revenue is x doesn’t mean you’re wrong to increase.
Great points! If you really want to get nerdy with it find out your route efficiently % and find out what your actual revenue per hour is and then you will find out your profit per hour.
My most profitable yards are actually my $40 yards. And when people say hoas aren’t profitable they are so wrong. Your route efficiency is so much higher when you are on site all day.
I have a couple high profit lawns that take 10-15 mins to get to. 10 mins to the next. That's 20-25 mins extra each cut, to me at least -$30. Had for a few years with no neighbors picked up and really don't want the neighbors... so those will be cut. My money is made when close by, especially having neighbors.
Good idea 😃☝️ I was thinking of implementing a 2% increase every year starting 2024 to all of our new clients and or clients who have already been with us but is underperforming with profit 🤷 I agree that going up on profitable yards would be a mistake😉👍
Agreed!
I’m adding 2 truck in 2024. I’ll be lowering my price to increase new clients.
Smart idea. Good luck to you! We're focusing on profit and client retention for 2024!
You have it nailed down. This year you blended both your suggestions. We do annual agreements but we have in there it could increase up to 5% year to year. And current clients this year we assessed them individually based on profitability & those below the mark we increased their rate.
Also, it's a great idea to add into T&C the blurp you suggested
Once again, good stuff!!!!!!!!!!!
I like that disclaimer note. Raising prices is always nerve racking. And depending on the area for some people getting more from clients can be harder. expecially if there on fixed incomes.
Thanks for the great idea for adding the price increase to the estimate. 🙌🏼
You're welcome. I think it will help us for sure.
Another great video, Jonathan!
I just started making RUclips videos! You said to do it, I think, a couple of years ago. I just referenced you at least twice in my last video (about "How I Got "FORCED" into Snowplowing" Lol). I've got a lot to learn, but I'm determined to succeed! - just like we both have been doing with our lawn businesses (that we both started about the same time). I'm not exactly what I'm doing with RUclips, but I'm diving in and learning as I go. I'm not sure if I'll have 2 channels that will overlap or what. I've got my personal Matt Pahuta channel and my Pahuta Lawn Care channel that I've been putting about the same content on both for now. God bless you! You've definitely been a great blessing to me! Keep up the good work! Thank you!
Good stuff makes sense.
If you raise too much there comes a time when you will lose the job. People are beginning to lower prices. Today Price is more important to customers than quality. A veterinary clinic I visit raised their prices again. They lost half their customers. It's always a gamble.
A customer who is price driven will ALWAYS run the show....The tail will wag the dog. I have found that price customers are NEVER satisfied and will find ways of adding extra work like shrubs etc. for free or little to no cost.
Price customers will NEVER refer you to anyone else and will drop you for Low Ball Larry who will mow for $5--$10 cheaper.
I get rid of customers like that or never take them on to begin with.
Thank you, such good information I’m going to add this it my estimates
Wonderful!
Good info.
So, we have a subscription package for our accounts that they sign up for. Blanket works for these because it's for the overall monthly invoice. These are a set price and based on which services they want i.e. basic package is MOW blow and go and leaf clean up /winter service. Standard includes all plus basic fert. Premium is all of the above with 1 annual shrub trim and either a spring or fall aeration and overseed if requested based on turf type. We don't really offer per cut, but we can this is where individual increases would work best. Now, with the subscriptions, the blanket still affects each account for each service package. I.e. this year, for example, could have been 200 a month per month, a blanket increase really affects the new accounts more than all but also the existing. I.e. 200 is going to be now 215 per month, so it's kind of affecting these folks as well as giving the higher for all new accounts. Now, most existing most likely won't see an. Increase and if so it would be minimal vs. per cut new accounts i.e. maybe existing might go from 200 to 205, but the new accounts would be the 215.
Before raising prices, ask, "Can I change the frequency of services?" For example, if you do biweekly, make all your yards weekly. If you work 10 months out of the year, make it where you come year around. Add services and add more value. I have better luck with customers when I first do these things.
Key is to track your numbers... How long is this job actually taking your crew to do? Are you hitting your target profit margins required? Is the profit margin in line with your annual business budget? If not, raise your prices... otherwise... leave as is... We implemented LMN a couple years ago. Gamechanger for our business...
I like to raise prices on the new clients, I have some of my current customers raise there own price, which is nice.
Very nice!
@@FloridaTurfPros Right now I have 20 to 25 I am in central Alabama
@@charlesjacksoniii8787good job sir!
not currently in the industry but if I'm nailing my metrics on that postage stamp yard, and it fits with my route density, I'm not raising them... until inflation actually touches my metrics on that yard.
We did a yard in an hour employee at say 17 an hour we got so efficient that now we do it 40 minutes when do your 2 employees get a raise believe me we cut 6 hours off the work surely the owner making money now ! Remember we're hourly!
My lawn guy has done my yard for the same price over the last three years.
House is on a 1/4 acre lot, $30 a cut, 2 guys, 20 minutes from drive up to drive off, they come weekly.
Sometimes it is three guys and they take 15 minutes.
They use small stand ups that fit through the side gate.
Each year I anticipate a price increase and it hasn’t happened yet.
We will see what happens next spring.
I wonder if a plumber charged $30 for a 30 min fix how would he make a living ?
@@dg5476 it’s why I am not in the lawn business. Service plumbers here charge $400/hr.
@@AJourneyOfYourSoul charging for time is a failing formula.
@@dg5476 He isn't charging by the hour, he charges by the job. He is figuring out how much he makes per job per hour, so he has an efficiency factor so he knows which jobs are the better paying job. I don't think you understand what he is doing. He is not charging by the hour.
Those plumbers don't charge by the hour either, that is just what it comes out to on average when you look at what they charge vs time spent on the job.
Omg I'm 170 hr with 2 people
Good video
Sell time blocks to include travel
Hey brother, you had provided a pricing cheat sheet with 3 different tiers about 4 years ago in one of your videos. It was super helpful to get me started with estimating clients for someone just starting out. Can you provide any insight into your new prices, relevant to your 3 tier system? Just got my first two clients for the new year and I'm curious to see where your at with the new inflated economy. Things were much different 4 years ago..
We're about 20% above those numbers.
@@FloridaTurfPros Thanks John. Good luck with 2024! Keep the content coming. Every video is always informative.
What type of shirt/ uniform do you use? I am needing quality long sleeves like the one you wore in this video...
The brand is called sport tek. It's a pretty common brand for uniform suppliers.
Do you do yearly contracts that they sign? or is it month to month?
I use a month to month model for residential. Contracts/service agreements for HOA's and commercial
I'm getting it but I don't do anything house under 120 but with trimming I'm still to low
You're too low @ 120/man hr?
Do you clock your time on each lawn you cut?
Not every time, but we will check times at different points in the season.
Just a quick question if you have time. I follow your channel and enjoy it. I am in middle Tennessee and am looking to purchase a flatbed lawn truck. I have been searching for used dealers withing 6 hours from my location but have not found anything yet. Do you know of any used dealers that you trust in your area? I have found some in Louisiana but that is a little far from me. Thanks, and keep up the channel.
there's a company around here called GulfCoastTruck. they occasionally have some used flatbeds in stock, so keep an eye on their website.
Thank you for this information. This is definitely in my range to travel, and I will keep their website on the radar.@@FloridaTurfPros
My small lawns 20 mins all done $10
You need to raise prices drastically.
@@FloridaTurfPros lost some already because of raising prices
$10?.........nope
Im running my business at 50% profit margin for lawn mowing, fertilizer, & mulching. What do you recommend?
That seems exceptionally high. Assuming you are deducting your own salary/compensation before calculating your company profit margin 30% is absolutely crushing it for small owner operators. For example, you'll have total sales at the top, then you need to subtract your cost of goods sold to get your gross profit... then after taking away labor costs, debt service, fuel costs, utility/overhead, taxes, and most importantly your salary/compensation that will give you your net income. Net income gets divided by gross profit to check your companies profit margin. Many times lawn care companies don't deduct a fair market salary for the owner operator and it skews the actual company profit.
So im doing all that you mentioned except for taking a salary for myself. 50% profit is what is left. Im a school teacher so i have a regular income/salary. I reinvest back into the company and pay myself with whatever is left.
@@theehgroup7006are you a landscaper or a school teacher? Maybe stay in your own lane either way?
@@andylaws7229why? Im both. Im also also a husband and father. Or should i only be one? Ive been teaching for 20 years and landscaping for about the same. Im doing great at both!! There is a whole community of us landscapers that have multiple streams of income…cops, firefighters youtube, book writers, rental’s etc
The problem in Florida is that you guys are cutting lawns for $25 weekly cuts . Some people pay $80 in Florida per month. To get the grass cut. And HOA wants you to do their homes for $20 for home. People don't like to pay much money in Florida they don't make a lot of money.
Haha, i don't know how anyone can stay in business with $25 cuts
$25? 😂 I was getting that in 7th grade
My friend is on the HOA board in his neighborhood in Green Cove Springs FL and get this......a husband and wife team forced the $22/cut guy out and they cut yards in there for $16/cut!!!! I do not know how they stay in business.🤪
I don't get the idea of if your at capacity, just go up on everybody across the board in the hope some people cancel. Could damage your reputation for your business and who knows maybe one day you might need that customer back. Wouldn't you be better off just dropping the least profitable customers in a polite way and being honest with them. (eg I'm only a solo operator and I'm over full capacity. Thanks for being my customer but I won't be able to service your lawn after the next mow. I highly recommend .....) That way you keep your profitable customers and end on good terms with the least profitable ones
@@bradpatti99995% chance that customer would not be serviced ever again.
Why charge per hour opposed to per service?
He charges per service, but figures the per hour rate so he can compare each customer. Now he knows which customers are the most profitable.
@@AJourneyOfYourSoul I feel that’s a failing formula and landscapers need to quit charging for time….
keep increasing prices and people will buy their own mower and do it themselves. It’s not rocket science.
I raised my $75 every 2 week lawns to $100 a cut. No one said a word. Most people don't wanna mow their lawn bruh.
@@bobafettfan32 Damn for $400 a month just for a quarter of an acre or less!! I can buy a used lawn mower every cut for that much money!
@@bobafettfan32 What a massive rip off!!
Every 2 weeks is $200/$300 a month. I don't care what you think.
I do this as my job. Want your lawns mowed for cheap? Do IT YOURSELF!!
And $100 is for an acre. So STFU.
Guys please stop mowing properties for $30 you are destroying the local market. Customers expect professional service at Cracker Jack box prices.