price

[bobbylawn]

I was asked by one of my residential customers ,if I would charge less money for the same quality service that I offer. It turns out? someone gave them a offer that was $60 less than I charge on a monthy basis. I can't se how anyone can do it that cheap and still make money.This is my 2nd year in the business, and I will not offer a service & not be compensated accordingly to the prices that I have set for myself, that it competitive with the market that i'm in. Can I expect this sort of thing to happin ? On a regular basis, are is this a one time thing. Has anyone of you guys or gals experience a simular situations, if so what did you do.

[lawrence stone]

What kind of mowers do you use?<p>Do you have a pesticide license?<p>If you have can perform all the needed<br>lawncare and landscape maint. services<br>needed for a homesite you have much greater<br>value to your customer and can negotiate<br>from a position of power.

[Lazer]

It's a competitive business.<p>It's not rocket science caring for lawns. Pesticide applications &quot;weed out&quot; some of the competition, (like the pun?) but there's still plenty of competition in most makets.<p>Always seek for ways to be competitive, but never comprimise your price. In our area about 20% of the contractors are in their first year or last year of business. Some of them, because of low prices, are in their first AND last year.<p>Price will come up every now and again, but stick to your guns.<br>

[bobbylawn]

I have a 52in lazer & 36in dixon wb. And i offer a full service lawncare service. The things I can't perform I have someone with the lincense to do the jobs.

[bobbylawn]

Hey! Lazer by your name I know what mower your using,good choice I love mine. But how long have you been in the biz? and how would you handle this.

[Retro67]

I agree, with residential, my price is my price. I might slightly adjust a large accounts price or bid, but there are too many homeowners to work for less than you deserve. I generally gross a dollar a minute on residential, but it all depends on how productive you are. <p>I'd graciously decline to reduce the price and explain that the quality of care you provide costs you and your competition both the same to perform. Explain to them that Company B may not be around to give them the quality of service you provide after they go out of business due to low profit margin. <p>Hope this helps, and that you can salvage the account without compromising your bottom line. Otherwise, you may have to figure out how to do it faster, so you still make the same amount hourly.<p>John

[bobbylawn]

Before I got my lazer z it was taking me about an hour & a half with my 36in dixon. Now my lazer only takes me about 40 min. And that includes trimming and blowing.

[HOMER]

I have been there, done that. I bid on a small church site for a yearly deal, my bid was 190.00 per month which was low to begin with, but it was a small church. I lost it to some nut that said he would do it for $60.00 per month and cut it every week. Needless to say he got it and could have it for that price. I haven't gone back after that business.<p>Homer

[Retro67]

If you are talking about $60 a month off just mowing, I'd say someone doesn't know what they are doing. They must be bidding it for ~$100 per month? If that's the case, I'd let them have it. Advise the customer against it, but some people are concerned with price only. <p>Don't take it personally if they decide to go with the cheapo bid. Give them a card or flyer and advise them that if things don't work out with their new service, you would be happy to provide the same quality service you always have, with no increase in your previous price. At least then they can't say you were unfair with them.<p>John

[MWHC]

I have had home owners tell me &quot;I cant believe your price, the last guy did it for $xx.xx) These people go to WalMart and see a mower for $199.00 and think that is all you have invested in your business. The average homeowner has no idea of the money we put into these busines's just to keep them running.<p>Try a few things that will set you apart from the guy that loads a mower in his El-camino and calls it a lawn company.<p>Get certified to apply pesticides. Take classes in turfgrass management. This greatly improves your knowlege on the subject, makes you look more professional, sets you apart from the weekend guys, and LETS YOU FEEL WORTHY OF WHAT YOU CHARGE! <p>Just my opinion, don't short yourself. If you are like most business', you are there to make a profit. If you are good at what you do, people will see that. Customers will come :)

[bobbylawn]

I just think some people want something for nothing. I'm in pjc school now for pest & turfgrass certifacation. I do greet work i'm compliminted on my work all the time.I have uniforms and hats that was the first thing I purchased along with my equipment when I got into this biz.No matter what you know matter how hard you try you just cant please everyone.

[Retro67]

I couldn't agree more. I am conscientious. I can't please everyone. I had a lady who I had to go through a lot to collect from. She treated me like I had done something wrong when I showed up wanting to collect &lt;b&gt;my&lt;/b&gt;money. <p>&quot;We won't be needing your services anymore,&quot; she said in a very snotty, condescending tone. I didn't take it to heart. She payed me. I ended up the winner for being rid of her. I had more work replace it shortly thereafter. You don't want to keep them all. You don't want to disclude any of them. However, not all customers are good customers. <p>I don't believe a good customer has to have a full service contract. That is a nice goal, but I'm not that rigid. I like to let the customer be right, as long as they are paying me.&lt;br&gt;&lt;br&gt;John

[Retro67]

[jrblawncare]

I agree with the above posts & it sounds like You are doing the right things,But I beleave FL is a hard market to be in,that guy may not be here next year or next week for that matter....Quality....Dependable your worth it!!!<p>----------<br>John <br>

[lbmd1]

I agree with retro's first post. Most fly by nighters don't carry insurance and it only takes one accident for the homeowner to realize that is why you charge a little more. Unfortunately, like mwhc said, they don't care what your equipment cost or what make it is. Also, having a pesticide license (or any other license)probably won't help win that TYPE of customer over. If they are looking to save money, what good does having a pesticide license do? It will always bother you when a customer dumps you. Don't take it personally. Read the marketing post, advertise and then you'll get to a point where you can pick them.

[jeffclc]

If you want good clean oats, you must pay a fair price, however if you can be satisfied with oats that have already been through the horse, that comes a little cheaper.<p>Try to inform the customer that there are many costs involved woth running a LEGIMITATE business. Insurance, licenses, ect. all play into why you have a higher price.<p>When I am in that situation, I tell them to make sure that the other guy has insurance and is collecting sales tax. Same goes for a pesticide applicators license. <p>Some wont care, but that may be enough to sway others. Would you let someone work for you without insurance?<p>I had some sidewalks at a house that needed replaced. A referral from a neighbor gave me a name of a young fellow and his work was beautiful, and his price was pretty good. All was great, and then I asked for an insurance certificate. He said &quot; I'm insured&quot; I still insisted on a certificate, and he could not produce one, and I was forces to go with a higher priced competitor, with insurance.

[Charles]

I take time out to get to know most of my customers. Sometimes I have a conversation with them that can last 15 min after I finish their job. Some of them tell me that I am like one of their family. Being friendly and nice to your customers can go along way to retaining their business. I don't think I have ever lost a long standing customer to discount competition. And we have plenty of those around here. Most people like to do business with contractors they know and trust even if they have to pay a little more. I ask this high producing salesperson how he sold so much. He said &quot;He loved them into buying&quot;.

[lbmd1]

Kudos to Charles for touching on a subject that hasn't really been talk about too much. While we all talk about money and profits, do you really care about your customer or do you look at him as a profit center and thats it? Both are needed as Charles says to keeping them your clients for years to come. Remember, it takes alot more money to get customers as opposed to keeping the ones we already have. I too spend time talking to our clients, asking about their kids schooling, their hobbies, etc.. We have people who come out each week looking forward to seeing us and we too have some that say we are like a part of the family. Kill them with kindness and they'll always stick with you no matter how cheap the competition goes. Every Christmas we send out $5 (wholesale) poinsettias to everyone of our clients. You will retain about 99% of them by doing some of these things that really don't cost that much as opposed to what they spent on you during the year.

[crew]

I go with 4%-90% rule. 4 percent of my customers are gracios enough to provide me with 90% of the complaints i receive. I've come to accept it as a cost of doing buisness. <p>----------<br>Steven A Mager<br>

[1stclasslawns]

Yes I am worth what I charge.<br>And I also get to know my clients, a little goes along way. I also use my clients when they have a service I need. My dentist is a client, the best restraunt in town is a client. What comes around goes around, is what I always say. <br>Put the shoe on the other foot for a few seconds. One of my oldest clients both in age and longevity of affilation, can no longer afford my services if she were a new client. So her price is the same as when I started out, its break even now but she was there for me in the begining, and has refered several to me. <br>Most dont understand the price of doing bussiness, ins, taxes, repairs, replacement,ect... So if I loose an account to a &quot;cut throat&quot; so be it. I thank them then ask them if price were the only reason I lost them. I leave them with a card and tell them if it dosent work out give me a call, if I can squeeze you back in I will if not I'll recommend someone else. I've had some ask &quot;what do you mean?&quot; well I tell them I get calls everyday, (which I do and Im sure you all do to) And I cant leave their place open that Ill have to replace them with someone else and there are just so many hours in a day. I cant cut every lawn in town. So far when they have heard this I have had noone cancell. I think they know a good thing when they see it. But if their a constant complainer or problem let them be someones problem other than yours. Jim

[bobbylawn]

I didn't even have them on a contract,Because they said I didn't need one. Are those the customers I need to be liery of .The one that say's I know you do good work thats why I hired you.I pull thier weeds in the flower beds that they say they will take care of, I take there trash to the curb for them , I do just about everything they ask of me for what just to be stabed in the back as soon as Iturn around. I quess thats the price you pay to be successful in this BIZ! Im ready for it bring it on. IT's a little harder here in FL.

[Keith]

Yeah Bobby, it is a pretty competitive market in Florida. My advice, don't do too much extra for free. These customers look for that, they will take advantage of you to save money. Once you do any extra work for free they will expect it all the time. They will say &quot;hey, you used to rake those leaves up every week...You are not honoring our agreement&quot;, or something like that. Not all are like this, you can do extras for some customers and they really appreciate it. You have to be able to read these people and know when to do nothing extra unless the money has been discusssed.

[bobbylawn]

Yeah Kieth, I take it your from FL. If you are were are you from. I mean everybody and there family cuts grass down here.I do 4 homes on this 1 street, and I may see 7 or 8 crews on this one street. And 70% of them have no ins.are license.So in order to do well your work has to be good. I see companies selling out all the time. Because of these fly by night jokers, thats only looking for a way to pay for thier golf game on the weekends and stuff like that.

[Charles]

You can have a personable relationship with your customers without letting them try to get you to do much of anything for free. You don't want to become their &quot;yard/house boy&quot;. You need them to realize how valuable your time and service is. And that you are giving them their moneys worth just doing what you normally do to their yard. I charge for everything they ask me to do. Like I charged this woman $1.00 to change her light bulb. I make a joke when they ask me to do something thats not in my field. I say &quot;wow! thats big money for something like that&quot; They usually say never mind after that. May seem tacky to you but people ask you to do small stuff at first to test you then they will move on to bigger things. Some of them get it in their minds that they are paying you too much and that you should do extra things. Try not to ever let them think you are over payed.

[AB Lawn Care]

Where not in this business to just break even!If some one under bids you don't go after his cheap jobs just smile,becouse if a the market turns sour how many of thouse cheap jobs that he has do you think won't go out to home depot and buy a $100 lawn mower and do it themself or ask the kid down the street to cut their grass.This happened to me twice.Two jobs that I liked where under bid by people.To date one of the two companys that did that is done.Like I said before just smile becouse chances are if that guy keeps doing that in a few years you will be the only one left smileing!<p>from:Adam<br>AB Lawn Care

[Bobby]

Bobby <br> Greetings from south Florida. Your <br>market sounds like ours. One thing I've <br>learned is, there seems to be a shortage <br>of quality people everywhere.80% of the <br>companys down here are (mow,blow & go) <br>operations. I do only residentials and <br>charge five to ten dollars more than the <br>other guys. Small yards, so five to ten <br>may be 40% more. I prefer a new customer <br>to have already been through 3 or 4 low <br>guys. By then, there sick of dealing <br>with whats not getting done. Most people <br>at that point, will be glad to pay a <br>little more for quality. <br> If you will separate yourself from <br>the pac, YOU will be noticed! <br> south Fla Bobby

[slagerlawncare]

kudos to charles and lbmd1<br>..this a service orientated business..getting to know your customers is key and that only gives you more referels. take time to get to know them.....show em pics of your kids(only if they look like there mother)chances are they will never leave your service.<br>Sure the other guy undercut you..but that's life in the business world. Those customers will realize after he or she has been cutting there lawn after a while what fools they we're for not paying you the extra $$$ . you get what you pay for....<p>----------<br>rick<br>slager