Mike Andes breaks down how to double a landscaping business from $1M to $2M: raise prices 20%, expect to lose about 5% of customers, and reinvest the extra cash into equipment like trucks. The math works because higher margins let you replace lost customers while growing capacity.
20%.
He expects less than 10% loss; estimates around 5% or less but plans for 10% in calculations.
$100,000 in the bank.
That's how you go from a million to 2 million. Right now I think you need to raise 20%. I think you'll lose less than 10% of your customers. And you've already stated to me that you are kind of maxed out in that area anyways. So losing 10% of your customers would be a good thing because we would guess what, we have to go get more debt. And that's ultimately when you raise prices, when you hit capacity. And that's what I want to see. Right. Right now we're hitting capacity of residential mowing. So what we're going to do, we're going to raise all our mowing customers, because hopefully, which this might not happen, is you lose customers. I actually believe you're gonna lose like 5% or less of your customers, but let's just say 10%. Cause that's what we need. We need to lose 10%. Well, guess what? Now you're focused on sales and you're gonna go sell more jobs and you're gonna fill that 10% immediately. Guess what you do then. You either grow or you raise prices. It's very, very simple. You hit capacity, you raise prices. You hit capacity. You raise prices or you hit capacity. Like, man, I got $100,000 in the bank now. Let's go get a couple more trucks. Boom. And you grow.
