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How Landscapers Can Increase Their Rates To Generate Profits

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When it comes to product prices and service rates, all businesses are different, even if you are in the same industry. Every company sets their own rates and each one differs; but it will always be about profit margin versus quality of work.

Businesses will always compete against each other and the landscaping industry is no different. It is a common complaint that labor wages within the industry are too low, and that owners are trying to underprice work in exchange for a greater market share. Regardless of whether your business is a small side job or an established landscape company, it’s hard to increase your rates when others are offering similar services at half the price.

Is it possible to offer great service while increasing your profit? How can you price landscaping services without losing clients? Check out these tips on how landscapers can easily and effectively increase their rates.

Offer customers more value rather than more services

Marketing is the life and blood of every business, including landscape professionals. In order to increase rates without negatively affecting your business, learn the secrets of selling to customers. Some could argue that a business owner sells to customers each and every time they meet potential clients. Though, there’s more to selling aside from introducing your products and services.

Are you selling real value or you are just giving them the price? Telling them what you can do and directly quoting rates doesn’t give much of a value to the client. Here’s what you can do to add more value to your sales pitch:

  • Assess your sales process and offer customers a significant value.
  • Build trust and don’t sound too robotic or impersonal.
  • Lay down the options and explain each one thoroughly.

Make it clear what your company offers

How many times have you told customers your products, services, rates, and then been left waiting for their response to finalize the project? Sound familiar? Most landscape businesses usually find themselves in a scenario like this. Instead, try highlighting what makes your company unique. For example, you might be using new, high-tech equipment, but unless your advertising this how will your potential clients know?

  • Expand on your plan of action, including landscaping issues and how you can provide the solutions.
  • Always explain your services before giving customers a quote.
  • Augment the interest of customers before marketing your services.

Build followers by giving them a glimpse of your landscape services

Figuring out how to price landscaping services isn’t easy since pricing your services too high may lead to a decrease in landscaping projects. To increase prices without losing clients, you need to have a good number of loyal followers. How can you do it? Give them a glimpse of your landscaping services.

When taken care of properly, one client may lead to long-term projects. Referrals and word of mouth could make or break your business.

Explain to your clients the nature of your services to help build trust and establish loyalty. Try offering a free demo or trial of your services Through social media or a blog offer helpful lawn care and landscaping maintenance tips to establish your business as an authority in the industry.

Create a value proposition for your customers

There are tons of companies out there offering the same services as you. So how would you differentiate your company from the rest? What would be your competitive advantage over the others? Why should people buy from you instead from competitors? The answer, give your customers not just services but a unique value proposition.

Having an outstanding value proposition could mean the difference between losing a project and closing a sale. Here are some tips when making a value proposition to your customers:

  • Connect with the market and resonate with your clients.
  • Study your products as well as services and discover your strengths.
  • Give them clear, concise, and actual benefits that will help solve problems.

Don’t just send estimates but inform your clients

The last tip on how to price landscaping services is all about customer information. If you wish to increase prices, you also need to increase the perceived value of your services. As a business owner, you understand and feel the need of price hike but customers wouldn’t comprehend this unless they were informed.

Remember that the key to a successful price hike is a well-informed client. To efficiently manage pricing strategy, you must practice the following principles:

  • Let clients decide based on quality of work offered, but not on price.
  • Allow them to make an informed decision based on facts, figures, and outcomes.
  • Explain everything from what materials cost to hourly rates and other technical input.

Don't forget to get covered with Landscaping Services insurance and protect your business!