How Much to Charge for Lawn Mowing: Pricing Tips for Lawn Care Pros
Lawn mowing is a great way to make money in America. However, determining the appropriate price for lawn mowing can be a challenging task. While on the face of it, you feel like all you need is a mower to get the job done, things can begin to spiral out of control after the early success.
Once you start becoming successful as a lawn care operator, you have to start hiring people - first the crews, then the sales guys, then Account Managers and so on.
As more and more people keep joining your organization, pricing lawn mowing jobs starts becoming a bigger and bigger problem. If you want guaranteed profits on the jobs your do, you need a consistent and reliable pricing system. You cannot rely on gut feeling and guesstimates anymore.
Today, we will talk about a few such strategies that you can use to arrive at the correct price - every time.
Understanding the Basics of Lawn Mowing Pricing
When it comes to pricing lawn mowing services, several factors come into play.
These factors can include:
- Size of the lawn
- Complexity of the terrain
- Frequency of the mowing service; and
- Local market rates
It is important to consider these factors to accurately price your services.
Expanding on the complexity of the terrain, it's crucial to note that certain obstacles like rocks, tree roots, or flower beds can significantly impact the time and effort required to mow a lawn.
Navigating around these obstacles with precision and care not only takes more time but also demands a higher level of expertise from the lawn care provider, which can influence pricing.
That is why you need to price your jobs on detailed maps using production rates.
Don’t have production rates? Download the industry standard production rates: CLICK HERE
Now, what do we mean when we say pricing lawn mowing jobs on the map.
This exactly:
SiteRecon’s Estimating tool breaks down the total turf to be mowed on the property into different polygons - based on the type of mower (e.g. 52” mower for larger polygons and 21” mower for smaller ones). Then it assigns a difficulty level to the polygon as well based on slopes, obstacles, etc.
Then the SiteRecon Estimator calculates the price of the job for you by using the gross margins and labor rates you entered into the system earlier.
Essentially, all you have to do is enter the property address, select the services you’re providing and the estimate is generated for you - on-demand. It’s like ordering a pizza and it is done at a fraction of the cost of hiring an estimator.
Watch this estimating masterclass with pricing specialist Fred Haskett, Principal Partner, TrueWinds Consulting.
Factors Influencing Lawn Mowing Rates
Size of the lawn: The size of the lawn is one of the primary factors that affect the pricing. Larger lawns typically require more time and effort to mow, resulting in higher rates.
Complexity of Terrain: The complexity of the terrain, such as inclines, uneven surfaces, or obstacles, can impact the pricing. More complex terrains may require specialized equipment or extra caution, which can increase the overall cost.
Type of grass: The type of grass in the lawn can also play a role in determining the pricing. Some grass species may grow faster and thicker, requiring more frequent mowing or specialized equipment for a clean cut. Understanding the specific grass types and their maintenance needs is essential for providing accurate pricing to clients.
Frequency: Another crucial factor to consider is the frequency of the mowing service. Lawns that require more frequent mowing, such as weekly or biweekly, may be priced differently than those that are mowed less frequently.
Note that SiteRecon Estimator takes all of these factors into account while generating the lawn mowing pricing.
Importance of Pricing Correctly
Pricing your lawn mowing services correctly is essential for several reasons. Firstly, accurate pricing ensures that you are adequately compensated for your time, labor, and expenses. Secondly, it helps you remain competitive in the market by offering reasonable rates. Lastly, proper pricing allows you to maintain profitability and sustain your business in the long run.
Breaking Down the Lawn Mowing Pricing Formula
To determine the appropriate price for lawn mowing services, it is helpful to break down the pricing into its various components. This allows you to consider the time and labor involved, equipment and maintenance costs, as well as overhead expenses.
Understanding the intricacies of each component will not only help you set competitive prices but also ensure that your business remains profitable in the long run.
Time and Labor Considerations
The time and labor required to mow a lawn play a significant role in pricing. Assessing the average time it takes to mow a lawn of a certain size and factoring in your desired hourly wage will help you determine the labor component of the pricing formula.
Moreover, taking into account the skill level required for certain types of lawns, such as ones with slopes or obstacles, can also impact the pricing structure. Customers with more complex lawns may be willing to pay a premium for your expertise and attention to detail.
Additionally, consider any additional tasks associated with lawn mowing, such as edging, trimming, or clean-up. These tasks should be accounted for in your pricing formula to ensure that all aspects of the job are adequately compensated.
Equipment and Maintenance Costs
Your equipment and its maintenance costs contribute to the overall pricing. Account for the depreciation of your mowing equipment, fuel costs, blade sharpening, and other maintenance expenses. It is important to recoup these costs through your pricing to ensure a sustainable business.
Investing in high-quality equipment can not only improve efficiency but also reflect positively on your brand image. Customers are often willing to pay more for a service that is carried out with professional-grade tools, as it signifies a commitment to quality and reliability.
Overhead Expenses
Overhead expenses are the indirect costs of running a lawn mowing business, such as insurance, marketing, office expenses, and vehicle maintenance. By including a portion of these expenses in your pricing formula, you can cover these costs and maintain profitability.
Furthermore, implementing cost-saving measures, such as route optimization to reduce fuel expenses or digital marketing strategies to reach a wider audience, can help offset some of these overhead costs and improve your bottom line.
Tips for Setting Competitive Lawn Mowing Prices
Setting competitive prices for your lawn mowing services involves careful consideration of various factors. By following these tips, you can ensure that your prices are both attractive to customers and sustainable for your business.
When it comes to pricing your lawn mowing services, it's crucial to understand the intricacies of your local market. Factors such as the average income of residents in your area, the size of properties, and the level of competition can all influence the rates you can charge. Conducting thorough research and staying informed about market trends will give you a competitive edge.
READ MORE: How to Market Your Landscape Business
Researching Local Market Rates
Researching the rates charged by other lawn mowing businesses in your area can provide valuable insights into the local market. Aim to offer prices that are competitive but ensure they appropriately cover your costs and allow for profitability.
Furthermore, consider the unique selling points of your lawn mowing services when setting prices. Whether you offer eco-friendly practices, exceptional customer service, or specialized techniques, highlighting these aspects can justify premium pricing and set you apart from competitors.
Balancing Profitability and Competitiveness
While it is essential to remain competitive, it is equally important to maintain profitability. Consider factors such as your overhead expenses, time required, and the quality of your services when determining your prices. Striking a balance between these factors will help you achieve sustainable growth.
Remember that pricing is not a one-size-fits-all approach. Tailoring your rates to reflect the value you provide, while also considering the financial viability of your business, will position you for long-term success in the lawn mowing industry.
Common Mistakes in Lawn Mowing Pricing
Correctly pricing your lawn mowing services is crucial. However, there are common mistakes that many service providers make, which can have negative consequences for their business.
Underpricing Your Services
Underpricing your services might seem like a way to attract customers, but it can actually harm your business in the long run. Failing to cover your costs and generate a reasonable profit margin can lead to financial strain and ultimately, the demise of your business.
Ignoring Seasonal Variations in Pricing
Seasonal variations can impact the effort required and the demand for lawn mowing services. Failing to adjust your prices based on seasonal factors such as increased demand during the spring and summer months can result in missed opportunities for profitability.
By understanding the basics of lawn mowing pricing, breaking down the pricing formula, and avoiding common pricing mistakes, you can confidently set competitive prices for your lawn mowing services. Remember to consider the unique factors of your business and local market to ensure a sustainable and successful venture.