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Pricing a Landscaping Business

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This essay describes the possible factors to consider in deciding the prices in a landscaping business. My landscaping business will primarily provide lawn-mowing services. I intend to move from ranch to ranch mowing people’s lawns. Currently, I am starting on a low note, using a simple hand-held mower but I am considering on shifting to a large scale mowing of ranches using highly mechanized machinery.

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The first factor to consider is that of costs. It is necessary to look at the cost of providing this service right from procuring the mower, powering and regular upkeep and maintenance costs. It would be senseless, therefore, to price my service in such a way that the total costs are above what I earn from the business, neither should they match, as I need to operate at some profit. Secondly, it is necessary to consider the level of competition. In looking at this factor, I would try to find out how my potential competitors price their services. It would be absurd to set price levels that are way out of range from those of my competitors. For instance, if a competitor charges 100 US$, I can decide to charge above this or below depending on how I intend to differentiate my services from theirs.

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Thirdly, market demand is a key determinant factor in setting up the most reasonable price for my services. Working on the law of demand and supply, I would price my services to fit the existing level of demand. For instance, if there are few competitors offering the same services it means that demand is high thus I would project higher prices. Fourthly, it is essential to consider the existing industry standards. If the market is made up of highly competent service providers, it is likely that every other potential client would demand the best services for the prices charged. Therefore, basing on my level of competence, I would be able to set the best price.

In conclusion, in determining the best pricing levels, it is vital tom consider both the client’s interests as well as the business’ interests. A balance, therefore, should be attained on both dimensions.

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