business. If you are new to the
research before you
you provide. Here are 4 things that you should keep in mind when establishing
the pri
1. Know how much to charge s
re foot
This is the basic factor in your prng model that determines whet
your
business w be profitable in the long run.
Here is a quick way to generate some idea on how much to charge. Measure your
n size and then call up a few reputable
n care companies and ask for their
quotans. Taking this a step furt
, you
ask a few of your friends to
do the same and then get the feedback from them. You w
e a good idea on
the various prng for different
n size and help you determine the acceptable
price range for your es.
Once you e an idea on how much to charge, set up a pr
ng schedule based
on the type of e
formed
s
re foot. For example, you may charge
$3 s
re foot for mowing and $1.50
s
re foot for fertilizing. Most
ns various from a few hundred s
re feet to a few thousand s
re feet.
Thus it is more convenient to set your price in terms of hundred s
re
feet or thousand s
re feet.
Bring this prng schedule
h you whenever you meet up
h your clients.
It w make you look more professional and increase your credibility.
2. Do not quote or bid blindly
When your customers call you up to get a quotan, remember to ask for the
dimension of their ns. Do not quote off the bat blindly. Give them an initial
estimate of the cost and tell them that the final prng
only be determined
after you e surveyed the site.
Try to meet up h your client and survey the actual site toget
. You w
e a better picture on how much to quote and provide your client
h a more
accurate prng. The ot
advantage is that you
pitch addi
nal
e
at the same time. Try to pitch in a few ot
es like aera
n, fertilizing
and ot add-ons but do it
h a soft approach.
3. Cheapest isn't always the best
As a new business owner, it is unwise to set a high price for your n care
es. However, it is e
lly unwise to be the cheapest in the industry.
Being too cheap raise doubt about your
sonal and business credibility.
Prng your
es somew
e in the middle or a notch above the
rage is
a good starting point. Once you e proved that you are really professional
and able to consistently provide a high lity of
e, you
justify
charging a hig price.
Do not attempt to undercut your competin
h low pri
. Entering a price
war hurt your business profitability and you w
e a hard time staying
afloat h a low profit margin. Instead, try to add value to your
es
hout any price reduc
n. For example, you
provide a free soil analysis
as part of your standard n care package.
4. Know your business costs
As a business owner, you need to be fully aware of all the costs involved in
running your business. Your cost of doing business w depend on your business
size and the type of es provided. The basic costs w
include mower acquisi
n
and maintenance, fertilizer spreader, measuring wheel and ot tools required
for your business.
You should also factor in the time you used for running the business. This
means your sonal labor cost. Unless you
e an assistant, you w
e
to do the administrative tasks yourself. These administrative tasks include
scheduling jobs, handling customer queries and complaints, preparing invoi
and mailing them out and many ots. The more time you spend on these administrative
tasks, the less time you e to
e your clients.
To grow your business, you probably e to advertise and this
constitute
a signifit por
n of your business cost. You w
e to spend time crafting
up a sales message and researching good advertising sour. Put in some form
of tracking mechanism so that you know which advertising sour are giving
you a good return in investment and eliminate those that are not effective.
With these four tips, you should be able to come up h a good pr
ng model
that w allow you to stay profitable and compete fairly
h ot
n care
companies. By consistently adding value to the es you provided, you w
be able to build a large loyal customer base that w keep you in business
for years to come.
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