Do you barter on price with "potential customers"?

[FrankenScagMachines]

Just curious if anyone quotes at a higher price and then ends up working down to a medium price to get the job? I ended up doing this more than i would have liked to this year.
Eric

[Dennis E.]

Depends on the account. Commercial prospects,sometimes.
Residentials,nope. The estimate is firm.

[P&J Lawncare]

NEVER, it is unprofessional and it makes you look desperate for work.

[FrankenScagMachines]

makes you look desperate for work.
Yea, but I am! :(

[P&J Lawncare]

You might be desperate for work but you don't want the customers to know this because before long they will have you doing all types of extra work for free because they know you need their account, if you carry yourself as a professional people will treat you like one and if you carry yourself like a beggar people will treat you like a beggar.

[Dennis E.]

The time(s) I have done it,which has been only a couple,was to get a prime commercial property. A place with "high visibility".
I did it with two clinics that I have currently. Held the price for 1 year. The price increase was no problem. They were very satisfied with the work. Actually my bid to get the properties was close to what I wanted anyway.
They were fed up with the bigger outfits that they had used before.I sold them on the more personal touch that I could give the job.
Did it with one other really nice commercial property because of a pkg. deal. I made up for the little loss on the main site on the other location that was part of the pkg. deal.
See where I'm going with this?;)

[lawnkid]

I like to start off pretty cheap and then go to a fair price over the years where i'm making a good dollar. I only do this to close neighbors that have like helped me through my life and have been good friend to the family. To the others I go like $30 for 15,000 sq. ft. Once I get a truck I'll be charging full price for everyone cause then I'll have more to pay for.

[FrankenScagMachines]

You might be desperate for work but you don't want the customers to know this because before long they will have you doing all types of extra work for free because they know you need their account, if you carry yourself as a professional people will treat you like one and if you carry yourself like a beggar people will treat you like a beggar.

I know, but I'm really desparate. When I get my license, things will change for the better... Maybe this summer I will get a job with a local crew or something. I seem pretty busy like it is but I don't have alot of customers. Just that one takes almost all day because of what I have to use, size of it, and the fact that there's about 75 trees or more on it! Alot of trimming on this one and most of those are small trees that they prefer to have a push mower used around so that I don't girdle the tree, which I don't, but they don't want it to accidentally happen. I just need a used WB, around 36" belt drive would be great but I need a truck worse :( :( :(
As dad says "AAARRRGGGG!!!!!" when he gets aggravated at things...

[Bob Minney]

No

[johnhenry]

it is so easy to go down in price. But its hard to go up in price in this industry. Remember the people you contact now might be customers down the road. And once you have a customer at a rate you wont be able to increase your rate that much at all. There are a ton of guys here still cutting at 1980s prices and they do great work. its just the nature of the beast

[BRIAN GALLO]

I know it's tough when you are looking for new work, but those wheeler-dealers sometimes come back to haunt you. I had some accounts like that at first, and now I can no longer do work for them because they "expect" a low price for everything. Another downfall is, they start reffering you to other people who will also expect a low price. I guess what I'm trying to say is; if you have to take the work now @ a lower price, just be aware that you may have to discontinue working for them later on if they don't want to come up to the price you need to operate business. Good luck. ;)

[RMDoyon]

Sample response when asked to lower your price:

"Possibly, what part of the service would you like to omit?"
This puts the ball back in their court and forces them to reconsider the who they are dealing with.

Roger

[Krimick]

This isn't something that I usually do........on mowing anyway. For bigger landscaping jobs, I will try and get a feel for the person. If I think they are going to barter then I definetly give a slightly higher estimate......I mean, if your estimate is dead on and you know they're going to try and negotiate, your not goint to have anything to offer.

With lawns, I don't really haggle. I give them my best price and that is that. Either they hire me or I suggest that they give little Timmy down the street a call ;)

[Lawn-Scapes]

Yes.. I'll negotiate. But only if I bid high and I really want the job.

[Likestomow]

I like to negotiate. I usually quote about $5 - $10 higher than I would settle for. That way I don’t leave any money behind. I tell them the price and say, “How does that sound?” This phrase gives the potential customer a chance to either accept or say that it’s a little high. Then I hesitate a bit and come down, again saying, “How does that sound?”

The customer then feels like they have won a victory and of course I have too --- so we are both happy!

[JimLewis]

Barter is probably not the word you were looking for. Barter = exchange your goods or services for their goods or services. Yah, I do that a lot.

But I am sure you meant negotiate or haggle. And I'd agree with most of the responses that in general, it's not a good idea. But there are times when it can be appropriate.

For one, I agree with you, that if you are desperate for work, it's okay to let them haggle you down a little bit. I did that in the beginning. If you are hungry for business and want to grow, it's often your only means to enter this industry. Especially if you were like me. I had a crappy looking set-up, poor marketing, very little experience, and absolutely ZERO name recognition. So my only real means for growing big was to compete on price. You gotta do what you gotta do.

Then, eventually, as we grew bigger and as we began to look more professional, get more experience, get good at marketing, and establish a good name for ourselves locally, I was able to start charging higher prices and negotiate less. I don't see anything wrong with that. And that's what I love about this country - that you can start out with just about nothing and build a good sized, respectable business.

Still today, I will negotiate once in a while. But there are certain circumstances where I'll do it. For one, I have to already have several yards in the neighborhood. Two, we have to have some room on our schedule for that day. And three, I have to believe they aren't just haggling because they are cheap.

Some people just like to feel like they are getting a good deal on everything they buy. I am one of those people too. I can almost ALWAYS find a good deal on stuff I buy. For example, I buy Honda Commercial mowers at a good $100 - $150 off what other landscapers pay. and part of that has to do with the fact that I know how to and who will negotiate. Some people just want to feel like they're getting a deal. I'll give them that satisfaction, knowing all along that we will get plenty of other business down the road from them that I probably won't be negotiating on.

One last tip, I don't negotiate too much. If I bid a job at $150 a month, the client might get me down to $145, but that's about it.

[SLS]

No!

I know my costs and worth and therefore I "stick to my guns".

And if some told me how to mow (like "use a pushmower around the trees instead of your usual method") I would tell them to take a hike...but in a nice way, of course.

YOU need set your prices...and YOU need to run your business...NOT your customers.

Man, I wish you were a new truck salesman...then I could tell you what options I wanted on it AND the price that you are going to sell it to me at. I'm ready for a new truck. ;)

[David Haggerty]

You're never quite sure if they're trying to work you to death or starve you to death.
The best alternative is to have a wider client base to work from.
Advertise more, make more contacts. Then when the negotiations aren't going quite your way, you can threaten to leave. And mean it.

Dave

[MOW ED]

I did negotiate with one customer this year but I had all of my information straight before I went this route.
I was given the reference to this job from another LCO who is expanding into brush hogging and has to dump some of his residentials. I knew his rate going in and I also know his hourly rate per man hour for add ons.
Long story but to make it short I ended up getting the job for the same weekly rate as my friend had but I got my per man hour rate at $8.00 higher than my friends. My first job on the property billed out at $450.00 and I had payment in less than a week.

Had I stuck hard to my initial weekly rate I would have lost the job. You have to have a feel for the individual customer but it also helps to have some inside info. Good Luck.

[TGCummings]

I have in the past, but can't remember ever doing it and not regretting it later.

Now that my systems are fully in place, and I know what I need to make to make this thing work, my prices are final. If I'm asked to come down on my rate (which I rarely am for some reason - they either take it or leave it w/o asking) I simply ask them who's going to pay the difference? :)

Now, nothing is ever forever. A situation may arise (such as where Jim mentioned others on the same stop) that I might compromise an ounce. Hasn't happened in a couple of years, but never say never...

You'll hardly ever hear me say this, but I'll ask: Are you charging too much? Check your numbers thoroughly. You're cost of doing business might be lower than you expect if you haven't lately. Compare yourself to other professionals in the area. What can your market bear? You might be charging out at $60-$65/manhour and only in need of $45-$50 to run a successful operation. On the other hand, you might need much more. Once you know your numbers, and what it's going to take to meet business expenses, medical insurances, licenses, retirement planning and profit levels you can break everything down to an average hourly rate necessary. Once you have that, you'll know if you have any room to play with.

Good luck! :D

[Russo]

We all have done this to get some work and get our name out there when starting out. Soon you'll be in a better position and you can decide if you want to replace these jobs. Be patient and keep nurturing your biz, dude. You'll earn the peoples trust thru your work and your personality. It just cost you a few bucks on price for your the first few customers- consider it advertising expenses for start up. People can smell desperation so don't make it a habbit. Your true "worth" will be billable soon, fake it til then when you can.

[NewbieOwner]

Nope... Not negotiable! (Even says so on my estimate sheet I leave with the customers!)

Searching the forums a while back I saw something someone had told a customer "Sure I can do it cheaper, But I'll still be making the same amount. I'll be cutting corners, and I wont be telling you where."

At the same time I could see the need to adjust the price, I'm in an area with little competition, add to that I do the best work in town. I don't have to fight for buisness, right now as it stands I'm beating prospective customers away... A few will not take no for an answer (Those guys get the RIDICULOUSLY high estimates, double my normal price!) I actually had 2 customers take it... (concience then set in and they got the regular rate)

For those in areas with high competition levels, yeah... I might be tempted to bid high and take less (customer at least THINKS they're getting a deal) But I'd stick to my guns as to how much I am going to make doing a job... If needed cut some corners required to keep my profits at the right level (Not where noticeable tho; My old favorite was to mow the 'rough' in the alley with the string trimmer rather than bringing the mower out there, saved on blade maintenance too)

Andrew

[Kent Lawns]

We negotiage what services will be offered.

We like to bundle "full service": lawn apps, mowing, landscape care, tree & shrub, irrigation etc.

So we negotiate about what services will be rendered.

--Never on actual price of services.