Starting a Landscaping Business: Price Setting

Landscaping Business Advice > Creating a Pricing System

Starting a Landscaping Business: Price SettingIn a creative field, it can be difficult to create a pricing strategy and stick to it. With so many different factors that affect price, it’s no wonder you might feel overwhelmed. However, your pricing strategy can be consistent and fair with these simple factors in mind. In this article, we’ll explore how you can devise and implement a fair pricing strategy, which goes hand in hand with our previous articles on starting a landscaping business and planning for long-term success. Before reading on, be sure to protect your new business with a comprehensive Dayville Landscaping Insurance policy.

Pricing to enter the market.

According to The Garden Continuum, this model calls for setting your prices lower than your competitors to lure clients away from them and dominate the market. Because the main reason for adopting this pricing policy is to boost market share over profits, there is little or no margin in it. It’s typically used early in the life cycle of a product, service, or company to get established.

Economy price scale.

This requires that you essentially get the job done and move on as quickly as possible. These profit margins are only lucrative when a lot of jobs are completed each day. The downside to this model is that it doesn’t focus on customer service or adding personal touches that new business owners need to cultivate.

Premium pricing.

The other option you have to create pricing scales is to focus on premium quality and personalization. Pricing is set at a higher level than your competitors, but there is a buyer’s perception of high value (they’re going to get a bigger bang for the buck), resulting from brand recognition (you’ve invested in marketing and outreach in various forms so your visibility in the market is relatively high) and there is a sense of status connected with your service. In turn, it requires you to provide a very high level of client care and interest in the overall buyer experience.

Once you’ve established your brand and have a series of happy customers (hopefully ones that share their positive experiences online for others to view), you can start using your competitive edge to ace out competitors and charge more for your services.

About Byrnes Agency

At Byrnes Agency, we provide insurance solutions for businesses throughout Connecticut. Our insurance plans cover everything from employee protection to workers compensation insurance. If you’re starting your own business, contact our experts today to make sure you’ve got the right insurance to allow you to thrive. For more information, contact us today at one of our two locations.

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