Hit 50 repeat customers in 90 days, that's when I knew my pricing was wrong

I run a small landscaping business in Phoenix. For the first two years I kept my rates under $50 per visit because I was scared of losing jobs. At 50 repeat customers I did the math and realized I was losing $15 per visit after gas and equipment wear. I raised my rates to $65 and only lost 3 people. Has anyone else had a similar wake up call about underpricing?

3 comments

3 Comments

the_elizabeth1d ago

Phoenix is brutal on equipment too, I feel you. I had a similar moment with my pressure washing side gig when I hit 40 regulars and realized my $75 per driveway was barely covering the chemical costs for the summer heat. At $95, I lost two people and actually had breathing room to replace my wand when it blew a seal. Your $15 loss per visit is the killer, it sneaks up on you because the cash comes in regular but the bank account never grows. Watch your truck maintenance too, Phoenix dust and gravel tear up brakes faster than you'd think.

dianaanderson1d agoMost Upvoted

Girl YES the bank account not moving thing is so real. I was doing mobile detailing and took me six months to realize I was losing money on every single interior shampoo because I was buying those expensive enzyme cleaners and not charging enough for the extra time. Upped my price by $20 and lost one client who complained but now I actually have a cushion. One thing that sneaks up on you too is the little stuff like microfiber towels. You think oh its just a few bucks but when you go through 10 a week because you refuse to reuse a dirty one on a customers car it adds up fast.

young.nora1d ago

Hold on, @dianaanderson, are we really calling microfiber towels a business killer? Like yeah they cost money but I bet you're still making a profit even with them. I feel like people get obsessed with tracking every little thing and then drive themselves crazy. Your $20 price bump worked, so clearly your pricing was just off, not that the towels were the problem. I'm just saying sometimes we overthink this stuff and give ourselves a headache for no reason.

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