meeting or beating a price on application

[anthony]

i hate when new potential clients ask if i will meet or beat a price.
got a call to give a price on a application program. they had 35,000 sf and chem lawn was 107.00 which included tax for a 6 step program and they were not to happy with the service...i was 126.00 + tax and 7 steps and they asked if i could match c/l price.. I SAID NO. by working alone i have a hard time compeating with c/l....
i do 6 lawns on that street and a total of 500,000 sf in that development...
after a week of thinking about it i should have said yes i will meet there price...
what do you guys think?
ant

[trimmasters]

go for it! our regular price on a lot of that size is 107.75 or 101.00 if we can turf track it. we have gone as low as 75 to steal one of that size from someone before.

[brentsawyer]

Let them use CL for a while and they will call you and gladly pay the extra$ in time. Trust me. Happens all too often with a company with 50% cancellation rates. If you do other wise, you'll be losing money and giving them something for free.

[Harvestman]

Trimmasters & Anthony! How are you guys arriving at your bids prices? Are you charging a stop fee or just buy the square ft. I would come in at $120.00 + tax.

[anthony]

no stop charge for me.
herd a few that do.
ant

[tpirobert]

I would not lower my price structure to get the lawn next door. If you are confident you are charging what you need to charge for your business, don't start down the slippery price war slope. Just explain to customer you are not CLTG and provide a quality,responsive service. Show them other lawns you do, referalls etc..

[trimmasters]

No stop fee here either. price sheet starts out at a high price per sq. ft and then goes down per square foot as the size gets larger.

[LawnLad]

Once you lower your prices, there is no stopping it. What happens when the customer who has the lower price tells their neighbors about the deal they have or refers you to someone else who wants the same "deal".

There is a reason they are not happy with TGCL. Your 17% increase over TGCL's price should be something your customer is happy to pay if they really are not happy with the other service they are getting. If their decision is price driven - and you win 'em on price, you'll loose 'em on price to the next guy who comes along 5% cheaper than you.

Stick to your guns.

[danzig]

My price is 175.00 for and area of that size. I cannot compete with chemlawn when it comes to pricing. My angle of approach is QUALITY AND SERVICE. I'am out there filling in my niche'. Chemlawn is great for my business as i can point out many shortcomings of their program. Turf applications are the only area that lowballers have not ruined in this industry. Don't try to compete with cl, give results that they cannot give. If you go el cheapo with prices you will get stuck in a rut of low profit. Bump your price up to at least 4.50 per 1000 sq.ft, go out and sell!!!! Remember, you get what you pay for.

[garydale]

We use a stop charge.( $25.00)to cover equip. costs. Then charge by sq ft.
Do you know your costs, can you make a profit at C/L price?
Generally I would not try to meet someone elses price,because it will never end and you will loose out.
C/L will tick him off eventually and he will be calling.

Good luck!

[MATTHEW]

I believe the #1 key to the highest profit margin is route density. You may lose a little on chemical costs, but, think of the time factor. You are driving past the lawn anyway. I am a firm believer in a tight route. I often pass up jobs because it is out of my service area. It hurts it the short run, but when I get 500 customers within a 6 mile drive from base, I will be on top of the world.

[MuskTurfKing]

Screw lowering prices, stick with your guns and be happy.

Hank

[Tony Harrell]

Try using a portfolio of your accounts to include 8x10 pictures, letters of recommendation and possibly permission from clients to call them. Nothing will sell a GOOD account like that if a potential customer is on the fence. Of course, most people are initially concerned with price, that's where sales takes over and a portfolio is a great asset.