How to Set Your Fee for Lawn Service
Entrepreneurs who like working outdoors can start a lawn service. The services they provide typically include cutting grass, edging, picking up leaves, pulling weeds and comprehensive lawn maintenance. As in any business, the service professional must set a fee for the service. The fee depends on several factors, and the new provider also needs to understand the expenses involved in providing lawn care. Knowing these factors allows the new service provider to compete in the market and set realistic fees that leave enough to turn a profit.
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Instructions
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Make a menu of services to provide to customers. The fee for each service can be different. For example, cutting grass has its own fee, but picking up leaves may have a different fee. The nature of the landscape can also affect lawn-care prices. Service providers may also combine different tasks into one overall service fee. Run a search for a service professional to gather ideas for additional lawn-care services.
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Determine the minimum price to break even for each service. For example, if the actual cost of cutting one acre of flat grass is $10, then set a fee above that amount to ensure a profit. Make this calculation for each new customer before giving a final quote. For example, the cost of gas for driving to a remote house can increase the expense of providing services.
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Ask existing providers for a quote. Use an online quote service. Run several searches and ask for individual services each time to obtain fees for each service. Give detailed information to get an accurate quote. Get a separate quote for combined services to see what kind of discount professionals usually offer for a combined service. Tabulate an average among all providers to get a typical fee for each service.
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Survey customers in the local area. Physically following a company providing lawn services throughout the work day is the one sure way to find existing customers. Quotes from a professional may be higher than the actual fee that customers pay. Average the results from the survey and compare them to quotes to get an idea of what local residents are actually paying for lawn service.
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Make a list of standard fees based on all the information about prevailing fees in the local area. Modify the fees based on each customer's particular needs. A customer may want to haggle over prices, but consider the minimum fees necessary to turn a profit when negotiating a deal.
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Tips & Warnings
Consider offering a one-time free service to break into the market. This business has competition just like any other, so getting customers is key to survival.
Do not overestimate fees in the local area by comparing to a different, more expensive area. The fees for lawn service differ from place to place. Similarly, underestimating the fee can reduce profits.
