Competing with existing Companies

[Hopper1124]

Any Advice on this subject? I am in Cincinnati, Ohio we have 4 main lawn care companies Trugreen, Showcase, Scotts , Greenlon

I am looking into getting my License and starting a Lawn Service I am educated and have been in the industry previously. We have loads of homes here and more being built, but how do you get your foot in the door to homeowners on a low budget?

Thanks

[f350]

"but how do you get your foot in the door to homeowners on a low budget?"

your new company just failed!!!!!
how can you compete with a billion dollar powerhouse on a "LOW" budget? scotts is fast becoming a company to watch..

[dougaustreim]

It will probably be a slow process, because without tons of marketing money, you really will have to depend on word of mouth to spread the word. We have grown our lawn care division significantly over the years, and almost all of the growth is by word of mouth. The first year we did applications, one person was able to do the whole round in one day. Now it takes three trucks 30 days or more.

First of all operate as a LAWN CARE company not a marketing company like all of the national firms really are. Develop a sound agronomic based program that works. If you produce results, you will get customers. Often we will get a call from a small town for a new customer. Usually within two years, we will develop a whole route in the new community. We set up our applications based on the needs of the lawn, not on cash flow needs. Success then leads to happly customers and then good cash flow.

As an aside, F-350, if you can't offer good positive advice, or at least constructive criticism. maybe you should just keep quiet. When people ask for advice, that is what they are seeking, not a put down.

Doug Austreim
Austreim Landscaping

[f350]

sorry doug, but my advice is sound and realistic. the question was how to operate and compete with heavy hitters on a low budget.. the question was answered, simple and to the point.. no need to jerk this guy around and fill his head the same way all of you do the 15 y/o boys. i love how guy's like you repeat themselves, " act like a lawncare company, not a marketing company " well how about operate like a business, make the money and retire.. sorry guy, but i'm in it to win it, at any and all cost from any angle possible. you can take offence to most things i say but, why sugar coat reality, if your looking for a support group join AA..

[GroundKprs]

Hopper, there are a few on this board who are all mouth and no mind. I'm sure you are intelligent enough to pick them out. Hint: their trucks always seem have the largest male copulatory organs on this site.

I got started in lawn care when Chemlawn was moving into our area over 20 years ago. They would do any lawn for $10 a stop plus $3/K. I had to charge at least 50% more than that to make a living. Could have used cheaper products, but I stuck with quality work. Chemlawn put most existing larger lawn care business on the defensive, from price alone. But my business grew every year, sometimes more than doubling each year. My prices are still at least 50% higher than all the big guys. I'm not here to compete, I'm just trying to do it well.

On a small basis like you are in, personal service and competent management will always succeed, if you have the confidence to make it so. Don't worry about your low budget versus anyone else's budget. Just take your time to learn, and always keep your eyes open. If you learn how to project this in the future, you could even run a large business the same way. Lots of guys, and gals, do. Doug's advice above is the best you'll find.

[Hopper1124]

If anyone is interested in allowing me to pick their brain on some ideas that would be great. I have a landscape background but I have a desire to do fertiliztions anyone would like to answer some of my questions I would like that.
Thanks

[boohoo]

Each company especially the large ones is only as good as the technician they send out so there is always a market for a quality operator. Personally I dont consider "word of mouth" marketing as such if you are trying to grow 3 or 5 fold every season. Its not a commodity you can purchase like advertising, telemarketing etc. Dont get me wrong its an integral part of the business.
As much as we always complain about telemarketers it is the number one way to grow a business just takes a lot of balls to keep getting rejections. Depends how you define "compete". F350 makes a valid point. Is yourself having 500 Lawn customers "competing" with a company having a local branch with 15000 customers.

[Green Sweep]

"Getting your foot in the door" is a very common dilemma for any new business. Of course, you wont have the money to telemarket or send out mass mailers like TG or Scotts. Telemarketing is the fastest way but it is also the most expensive(financally & mentally). Word of mouth works if you already have a good customer base. Getting that base is tough. One thing that I havent read in other replies is what you have to offer. You really dont want to 'low ball' but you need to have some kind of offer to lure these people away from the big companies. A free lime application, a discounted grub control or aeration...something. Yes, it will cost you money. Unfortunately most people will react to 'free' or 'discount'. Get yourself some nice literature made up, put on your best salesman's suit (or neoprenes) and you'll do well. Then, of course, do quality work to maintain & grow your customer base.

Oh yeah, my brother lives in a new plan of homes in Hebron, Kentucky & all 200 lawns in the plan look terrible. Maybe a good place to start!?

Rob

[dougaustreim]

One thing that we promote that is well received is NO TELEMARKETING. People are sick and tired of phone calls. Every year when TGCL starts their phone calls, we start getting calls from new customers. I sometimes think they hire us just to get even with the telephoners.

Targeted direct mail has always worked well for us


Doug Austreim
Austreim Landscaping

[lawnstudent]

Originally posted by Hopper1124
Any Advice on this subject? I am in Cincinnati, Ohio we have 4 main lawn care companies Trugreen, Showcase, Scotts , Greenlon

... but how do you get your foot in the door to homeowners on a low budget?

Thanks

Education
Superior quality
Superior Customer service

Like the folks have said before, the big guys hire mostly temperary help for technicians. For most of these people its just a summer job, not their careers. It certainly is not their company. If you know what you are talking about and really care about offering superior customer service you can be succesful.

You can market succesfully on any sized budget. Do your research. Go to the library and check out books on marketing for small businesses. Ask small businesses in your area how they got started. Attend classes at your local community college on marketing for small businesses. Attend seminars. Anything that helps prepare you for marketing. It all helps and there are no easy answers. Flyers and direct mailings don't have to cost alot and will get you business. Can you compete against the big guys? Yes, but it's hard work. Will you crush the big guys? Not likely, but you can create a niche for your company and make a descent living. Will you be succesful? No one here can predict that, but I don't think we should discourage anybody from trying. Good luck.

jim

[LCSR]

Hopper,

The best thing you can do is sell yourself. The majority of these "Big" companies have a high turnover in employees as well as customers. Let your prospective client know who you are and play up that angle.


Word of mouth customers tend to be more loyal than telemarketed clients. Check into hiring Boy Scouts or similiar organizations that will do door fliers for a reasonable price. Make sure they will be supervised and offer a additional stipens for new clients generated from their efforts.


Mail responses are great but if you get 2% response on you drops your doing good. The plus side to mail responses is you should close 60-75% of those you do estimates on.


Good Luck


Mike

[greenngrow]

Hopper,

Just e-mail me. I will be glad to help you out... Don't listen or pay much attention to these guys. Well some of them that have good advice you might want to give them some attention.....


I started a App service over 6 years ago. This past season my gross sales for the First round was more than my total gross the first year.... I competed with the big BOYS.

Most new home owners want thier places to look good. You have to watch but you can make a good income from these customers...

[lawn_j0ckey]

Originally posted by greenngrow
Hopper,

Just e-mail me. I will be glad to help you out... Don't listen or pay much attention to these guys. Well some of them that have good advice you might want to give them some attention.....


I started a App service over 6 years ago. This past season my gross sales for the First round was more than my total gross the first year.... I competed with the big BOYS.

Most new home owners want thier places to look good. You have to watch but you can make a good income from these customers...


He makes a very good point, in fact you can even purchase a list of new homeowners in your area if you know the right people. and i can tell you from experience, that a lot of the big boys already have those campaigns going for them.

[weedmaster]

I sprayed 8 lawns late in the day yesterday and picked up 7 new 2 actually walked in the backyard and asked me to come spray their yard. 2 were neighbors I rang the bell and they hired me. The remaining 3 were referalls from another company that I made a deal with. If you are out in your community spraying while people are home you will pick up business. Spray on the weekends and you will grow.

[Field General]

HOPPER....You will find that once you get up and running it is not really that hard to get customers away from the big companies. As I have stated before on this forum I am small time compared to most of you guys. About 75% of my customers are x-TGCL clients,there is a housing plan in my area that I have all but run TGCL out of. All with nothing other that word of mouth....neighbors talk...believe me, at least in my neck of the woods. All that you have to do is be honest and caring with your customers and don't get greedy with the pricing and you should do just fine.GOOD LUCK.

[MacLawnCo]

Originally posted by weedmaster
Spray on the weekends and you will grow.

And also inconvience the heck out of your clients when you are putting down liquids. Not to mention screaming part timer.

[1MajorTom]

Originally posted by MacLawnCo
And also inconvience the heck out of your clients when you are putting down liquids. Not to mention screaming part timer.

Agreed with the first comment, but what do you mean by your second one?

Is being part time something to be ashamed of? Should a part timer pretend to not be part time? :confused:
Do you mean to say it doesn't look good to be part time? :confused:

[Rossislawn]

A lot of the customers that have tgcl would die for a small town company to do there lawn. We all know the smaller the company
the more dedicated. These big companies really are just worried about getting it done quick and hitting there goal. As a small company wants to do a good job to build a customer base. All you need to do to get your foot in the door is to go door to door.I would actually tell people why they should'nt go with a big company and the benifit's they will get from your's.

[MacLawnCo]

Jodi,

it seemed that this thread was about how to compete with the big companies. If that is the objective, you will not project the right image by spraying routinely on the weekends. There is an inconsistancy between being a large company and doing substantial amounts of work on the weekends. There are instances where i do advocate working weekends, but spraying residential clients would be on the bottom of the list.

On the other hand, if you want to apear easily accessable and part timer (which there is nothing wrong with as long as they play fairly with liscensing, insurance, and rates) then spraying on the weekends could be an option... just not one id ever pursue.

[Ryan Lightning]

Does anyone think its worth buying into a franchise like Scotts, just to eliminate a future competitor? There isnt any big companys here yet. But Ive heard of a few gardeners getting info from Scotts on buying into there franchise. I was thinking if I dont buy into them, someone else will.

[cemars]

Originally posted by LCSR
Hopper,

The best thing you can do is sell yourself.


Truer words were never spoken.

[envi lawn]

In our neighborhood, home owners call TGCL only because they don't know of local companies. I've used professional door-knob info hangers which stress local personalized service. At times people would literally chase me down the street with the hanger in hand wanting to talk. Many were TGCL customers.

With $400,000-$750,000 properties, many homeowners want custom care, something they can't get from the big companies.

You do not have to compete with TG pricing. Set your price, sell the quality. $100/season price difference won't faze people looking for quality.

[DUSTYCEDAR]

Originally posted by Ryan Lightning
Does anyone think its worth buying into a franchise like Scotts, just to eliminate a future competitor? There isnt any big companys here yet. But Ive heard of a few gardeners getting info from Scotts on buying into there franchise. I was thinking if I dont buy into them, someone else will.

i have looked at the big franchises in the area scotts, lawn doctor,natural lawn and have found u need minmiun of 250k net worth 50 to 75k liquid cash on hand and another 150k operating line of credit just to start then they want franchise fees and other things u find in the fine print
i know i sure as hell dont have that kind of money lieing around just to give to somebody for a name
and they dont gaurentee u 1 customer u can still fail even after putting out all that money
if u r serious about lawn care u can make it on your own but it wont be fast and easy but it can be done
give good service and market wisely and u will do ok

[Runner]

Sell it yourself. Besides a few of the terms that were used here, that are key "working terms", such as Personalized, and Custom, another great selling point that you have to your advantage, is that you can tell the customer that you ARE the company, not just some "hose jockey" waiting to collect his check on Friday. Therefore, reputation means ALOT more than what it does for these "high turnover" big green companies.
THESE are the types of points that you bring up during your sale!
I can make a sale to about everyone I talk to, and about 90$ of the time, I come in over what the other companys' quotes were. Sometimes, I am JUST under. There HAVE been occasions though, when they have showed quotes that were WAY too low, and I've explained to them exactly where and what to look for as the quality is going to suffer during mid-season to recoup the costs. They always appreciate the "heads-up", and sign on.