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View Full Version : Straight from the lowballer's business plan


RECESSION PROOF MOWING
01-30-2011, 06:13 PM
For those of you that always wonder why and how lowball kings do what they do, here's the inside skinny. Some of this will make no sense to you, some will seem like business suicide, but this is exactly what's going on in big-time gov'ment and commercial bidding in all major cities of the United States.

It's kind of what the bigger grocery chains or Walmart way of doing business. You've heard of "loss leaders"? That's a product that by design is going to lose money for the business but gain your business overall. The grocery store advertises bananas at $1.39 per bunch. That's stupid, right, of course a bunch of bananas probably cost the grocer at least $1.99 to get them on the produce rack. Ah, here's the rub...you go in for the cheapie bananas and walk out the door with Raisin Bran, Hostess cupcakes, that yummy looking Marie Calenders Mac & Cheese, a delicious bundt cake, a few cherry turnovers, and a gallon of 2% milk. All those items the grocer made money on. The loss on the bananas got them into you. That's what lowball mower guys do on a big scale. They bid break even or losing money in order to drive all you smaller companies right out the door in frustration. They'll take the hit, if they can last that long on credit lines, until the competition weeds out some. Then, they hope to incrementally raise prices over time. Well, times being tough and all, most of those lowballers are now stranded at that low price point. They created a Frankenestein and he's ravaging their expense sheets! Most people can't continue to make no money until some years later when you MIGHT make more. Most guys can't hang on that long. Banks won't keep funneling money to your credit line. Those days are over. Big companies can and do. Walmart can and does. Big Grocer can and does. So just remember that when that lowball city park cutter wins the bid but can't do the edging the way inspector wants, or forgets to mow a park or two when inspector is on vacation, or signs his invoice in October that hey, he did in fact mow on the weekend you just weren't around to inspect (and he didn't mow a blade of grass on that contract)...that's the price you pay for allowing a lowballer to punk ya. Don't come crying to me...deal with it!