STP: Simple Transparent Pricing

 

Over the years we have been asked to quote on many one-off jobs and full year maintenance contracts. In the situations where the client decided to go with our proposal, we have had the opportunity to occasionally see what other companies were charging. Wow. Sometimes the price difference made us question our own pricing models. The problem was there did not seem to be any logic behind there numbers. It seems at the time of this writing there are two pricing camps, one camp has what we will call the Low-ball Business Model and they quote on any business they can get and charge just enough to pay for the days work. Taxes? WorkSafe? Long-term business operation? The other camp is what we will call the Superiority Hi-Ball Business Model. Greed and excess seem to run ramped. Do everything to justify why a simple three-hour job is priced at $600.00

Bottom line is everyone can quote what they want. The difference is Landscapia will deliver your quote with the details and the data used to build your quote.

“In God we trust; all others bring data.”

― W. Edwards Deming

 

An Example of STP:

Jane Smith an operations manager wants their small commercial landscape taken care of weekly. She wants only basic landscape services and all other services will be reviewed and approved on an “as needed bases”.

  1. Debris Pick Up
  2. Trim Line
  3. Turf Cut
  4. Hard Surfaces Blowing

We charge out each item accordingly to the square meter or linear meter that we need to service. We then add this total to our base service call charge. That is it. For the service items, it would not matter if you lived in a mansion in West Vancouver or operated a commercial site in Surrey, the price we charge is the same. We will use some math to calculate the service call charge. The service call charge uses our own algorithm.

STP: our way of demystifying service pricing.