Optimizing your pricing - part 2

Besides pricing, route density is also one of the most important factors impacting profits for service companies. Would you rather have 1,000 customers spread out in a large geographic area — or 500 customers in one neighborhood? Profits will favor the later.

Dense routes = huge profits. 💰

Too much focus is on expansion to new markets and expanding service areas — not enough on growing density on a neighborhood/zip code level.

Your focus should be on maximizing density and minimizing drive time.

Windshield time is the silent killer of profits for lawn care and pest control companies. If your team is spending time driving — they are not producing revenue.

While it’s inevitable that time will be spent driving — it is your imperative to minimize windshield time.

When pricing — it is important to factor in drive time and also the density of customers that you have near that potential customer.

Customers that are near other customers can be priced less than customers further away.

Utilizing location-based discounts to build a density of customers in a neighborhood or city is also a great strategy.

Think of it as a mathematical optimization problem. Your goal is to have time spent behind the windshield be as low as possible for your team.