Establishing a Minimum Price in the Lawn and Landscape Industry

As the old saying goes “time is money”, therefore being more efficient with your time means having more of it to make more money.

Importance of Establishing a Minimum Price

Time Efficiency and Profitability

There are simple ways to become more efficient with your time and today I want to discuss one of the easiest ways you can save hours and hours within your lawn and landscape business. As you may have guessed, establishing a minimum is the time saver we will be discussing today. There are so many benefits of establishing a minimum, but the main purpose is that it will keep you from running around all day wasting time on people who are unwilling to pay your price. 

Avoiding Unprofitable Leads

As great as this tactic is, establishing a minimum isn’t just setting a random price, it is about knowing your true breakeven cost and setting it based on that number. You can find that information in another post strictly about finding your cost. Avoiding unprofitable leads can be accomplished when you first know what a PROFITABLE lead is! When you do figure that out, you can establish your minimum and then confidently tell a lead what that price is and if they don’t want to pay it, you move on and waste no more time. 

Calculating Your Break even Point

Understanding Your Costs

If you just set a random number as your minimum price without knowing your cost, you may actually be too low and still be losing money or too high and turning down work for the wrong reason. Therefore, before you establish your minimum, find your breakeven point.

Setting a Minimum Based on Your Breakeven Point

If you are like most people, running leads all day that turn out to be a waste of time is one of the most frustrating things you do. That’s one huge reason why setting that minimum price for mowing or fertilization and weed control or any other service can help you distinguish a good lead from a time wasting lead. 

Dealing with Leads and Setting Expectations

Communicating Your Minimum Price

To help cut down on running on every lead, set your minimum and tell it to everyone that calls in. Another option could be posting your minimums on your website. This may also have the opposite effect and drive away leads before you have the chance to sell them, but if you can create value online, it may not end up driving away those leads who you could possibly sell over the phone. Telling potential customers on the phone what your minimum is will be a quick way and easy way to weed out (pun intended) who’s willing to pay your price and who isn’t. Those who are looking for a price point below your minimum can move on and find someone cheaper and you can move on to a lead that will more likely become a customer..

Handling Small Yard Misconceptions

Something to keep in mind with giving your minimum is to remind the caller that this may not be their cost just because they believe they have a “small yard.” We hear “small yard” about 150 times a day and sometimes we like to jokingly respond “if you were selling your home would you advertise it as a small yard?” and this typically leads to a laugh. It’s also important to remember that a very challenging small yard may not be at your minimum because of the level of difficulty of mowing. Remember, time is the thing to keep in mind, not necessarily just square footage.

Misconceptions about Minimum Pricing

Minimum Pricing is Not a Sales Pitch

Another factor to remember about minimums is that you are not pricing the job over the phone. The misconception that a minimum is any kind of sales pitch or final answer to a lead’s price is one that must be overcome. When selling, you have to remember, do you want to sell with the price or the value? You should offer value to your customers if you want them to be loyal. NOBODY is loyal because of a cheap price. If that is all they care about, they will replace you when someone cheaper comes along. So, your minimum price is a jumping off point to qualify the lead, not to sell it.

Sticking to Your Minimum Price

The truth is, the minimum you give someone means that you are not willing to work for any less than that number, because anything less and you are no longer making the margin you set. Once you set your minimum, stick to it. If you tell yourself or someone else you won’t accept less than a certain price then give in, what you are really saying is that you were lying to them and that is not how professionals work. This means you don’t make exceptions for ANY REASON such as minimum discounts for neighbors! Absolutely NEVER come off your minimum.


The Importance of Establishing Your Minimum ASAP

ESTABLISH YOUR MINIMUM ASAP. It will without a doubt save you from running around on leads who aren’t willing to pay your prices. Remember though, your minimum needs to be based on YOUR breakeven point, not a random number you pull out of the sky or based on your competitor. And, once you establish a minimum, that’s your minimum, you don’t go a dollar under or 6 dollars under to get work. For more information on establishing a minimum, check out the full video.

Frequently Asked Questions

What is the importance of establishing a minimum price in the lawn and landscape industry?

Establishing a minimum price is crucial as it helps save time and increases profitability. It prevents you from wasting time on leads who are unwilling to pay your price, thus enhancing your time efficiency. Set a minimum and stick to it regardless of the situation.

How can I avoid unprofitable leads in my lawn and landscape business?

To avoid unprofitable leads, you need to understand your true breakeven cost and set your minimum price based on that. This will help you identify profitable leads and confidently communicate your price to potential clients. Never come off of your minimum, otherwise it’s not truly your minimum. 

How do I calculate my breakeven point for my lawn and landscape business?

Answer: To calculate your breakeven point, you need to understand your costs thoroughly. Once you know your costs, you can set a minimum price based on your breakeven point, helping you distinguish profitable leads from time-wasting ones.

How should I communicate my minimum price to potential clients?

You can communicate your minimum price to potential clients over the phone or by posting it on your website. This helps to quickly identify leads who are willing to pay your price and weed out those who aren’t. Make sure you are clear that just because you tell them your minimum, that doesn’t mean that is there price.

Why is it important to establish my minimum price as soon as possible?

Answer:Establishing your minimum price as soon as possible saves you from wasting time on leads who aren’t willing to pay your prices. It should be based on your breakeven point and once set, you should not go under it for any reason.