Economy or Low Ball Upstart

[MnGreen]

Received a door knocker for lawn service at my place of work today.
Work at a place with about 1/2 acre lot.
The entire block(commercial) and immediate area (residential) had these $18 offers for mow & go service.
I just got out of it in my start up year because I could not maintain/acquire $26 properties on average just to pay for equipment and costs.

This is in the Minneapolis area burbs.
Any one else seeing this type of service proposal being advertised ?
I cant see it working or worth it unless you can canvas a block or two area and sign (10) accounts minimum.

There were NO up sell services offered by this company, just mow & go !!

[dennys-lawn]

They will need a bail out about mid-season :)

[LawnGuy73]

Received a door knocker for lawn service at my place of work today.
Work at a place with about 1/2 acre lot.
The entire block(commercial) and immediate area (residential) had these $18 offers for mow & go service.
I just got out of it in my start up year because I could not maintain/acquire $26 properties on average just to pay for equipment and costs.

This is in the Minneapolis area burbs.
Any one else seeing this type of service proposal being advertised ?
I cant see it working or worth it unless you can canvas a block or two area and sign (10) accounts minimum.

There were NO up sell services offered by this company, just mow & go !!


I may be wrong here, but.... Are you talking in the west suburbs?

[MnGreen]

Burnsville...Savage

[LawnGuy73]

Burnsville...Savage

I think I know the company your talking about, well I can think of two companies it could be. I dealt with this crap last year too.

It sucks doesn't it?

[MnGreen]

well I managed to only stay afloat my initial season in 08 just trying to meet costs.
I live south of the area about 30 miles and couldn't keep a $26 average.
With this type of competition or service I would have been out much earlier just trying to get established.

Kind of curious if a " mow & go" approach will be a attractive alternative in this economy, or if at all profitable after it's all said and done at rates like that.

[mngrassguy]

I've seen TONS of these guys come n go over the years. So have your customers.

It sounds like you guys are focused on price rather than service. I quite worrying about lowballers a long time ago. The type of customers they attract are not the type you want. $26.00 is WAY to low. Most GOOD LCO's around you are getting $35 min.

Stick to your guns and you'll make money instead of "giving away the farm" like they are.

[MnGreen]

In the metro area I agree $26 is low but I'm south 35 miles and in a community of 20,000. Was tough to educate or push service/quality with all the competitors in the area legit and more not legit.
$26 was a figure I needed just to meet my costs and try to establish myself in a year or two. Was certainly not offering up $26 services unless it was 1/4 acre or smaller in / out quick.
Pushed $32.00 bid/accounts and it was like pulling teeth to find any takers.
Just couldn't establish a customer base to cover my costs so I got out.

[LawnGuy73]

Their was a very large service out of the south metro last season. They were offering to residential spring clean up, weekly mowing, four weed and feed applications, and fall clean up. All of this for $995.00 pre pay before April 1st. I don't know about you but I make more then that per house in a season just mowing.

Pretty good deal for people in this economy, considering that they are a large company and they do great work. atleast they only offered this in two cities, but still how do you complete with that.