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View Full Version : What is a lowballers?


Lawnmedics
08-13-2004, 10:17 PM
I do not understand why everybody thinks they are being beaten up by lowballers. I have taken accounts from other LCO's due to price but not intentionally. I bid what I think is a fair price. A price that I make money at always. If that makes me a lowballer I am. I carry insurance and pay my taxes but always try to give a fair price. REcently I basicly took all the accounts on one dead end steet from a LCO because I quoted a price of about half what he was charging. Now I have all of his accounts and could not be happier about the profit from this steet. Does this make me a lowballer?

EastProLawn
08-13-2004, 10:23 PM
If what you are saying is the truth, then no you are not a lowballer, there, there, do you feel better now...:p

Lawnmedics
08-13-2004, 10:27 PM
Yes, Now I do feel a lot better now. Thanks.

Trevors Lawn Care
08-13-2004, 10:29 PM
I dont think it matters anymore. Stick around till next spring and you will have your fair share of lowball talk. I know i myself had enough this spring!

Run your business your way. if you are around for next spring, you obviously are doing something right.

Trevor

MJLsLawnCareNmoreLLC
08-13-2004, 10:42 PM
Originally posted by Trevors Lawn Care
I dont think it matters anymore. Stick around till next spring and you will have your fair share of lowball talk. I know i myself had enough this spring!

Run your business your way. if you are around for next spring, you obviously are doing something right.

Trevor

Yeah that was good times eh trevor?:rolleyes:

HOOLIE
08-14-2004, 12:47 AM
I always think of a lowballer as someone who intentionally gives a lower price just to get the business. If your prices work for you, and you don't know what the other guy was charging, then you're not lowballing. IMO.

GrassFearsMe
08-14-2004, 06:17 PM
why would you cut a price in half when you could have dropped it a little and still got the work thats just silly. Now you just dropped the price in the entire neighborhood b/c people talk, way to go now everybody has to work for your prices or risk losing their accounts.
Every business runs on a differnet budget and maybe the price those other dude was charging made him the same cash you are making. If you can charge a little less and still get the work it wouldn't hurt surrounding compaines. JMO. This type of thing has happened to the company i work for and it sucks.

promower
08-14-2004, 06:35 PM
I hope you are at least making $40 an hour. To beat someone by half is a lot. Either he was charging way to high, or your to low. It may work for you now but what happens when your expenses increase, or your paying employees to do the work, will you still be making money?

o-so-n-so
08-14-2004, 07:33 PM
A low baller is a person that prices his/her work based on someone else's prices...not good.

If you got the work because you operate at a lower cost and can work cheaper then your not a low baller. Your just a smaller company with less overhead.

ed2hess
08-14-2004, 07:52 PM
We have to bid most of the residential at $25/hr and commerical at $20/hr in our area. We had one set of high end homes at $35 per hour and lost them so this year we will rebid at $25. We have insurance on workers, have liability insurance and pay all taxes and feel like we are doing fine. When I was solo I looked for the $40+/hr jobs. It sounds like you got good foundation Lawnmedics to build your business...you will do fine.

Norm Al
08-14-2004, 07:54 PM
when you hit about 70 years old and your balls hang down to your knees,,,,,then you will know!:)

Oldtimer
08-15-2004, 09:33 AM
WHAT LOWBALLING REALLY MEANS:

The term "lowball" comes from the automobile business and started being used in the 1950's. When a customer walked because he felt the dealer's price was too high and he could buy the car or truck cheaper elsewhere the salesman would wait until the customer was about to drive away, stop him and say "I know you really want that car and I think I can get it for you for XXX" with XXX usually being less than dealer cost. Now, the customer thinks maybe he can get the car for that price and when he goes shopping at the next dealership he will tell the salesman what he is willing to pay. At that point the an experienced salesman knows the customer was lowballed and if he is good enough he will attempt raise the customer a few hundred dollars and make the sale. After shopping a couple more dealerships the customer will go back to the salesman who low balled him because he thinks he will really get the price that was suggested when he was going out the door. If the lowballing salesman is good enough and works the customer hard enough he will raise him a few hundred dollars or switch to another vehicle with a lower price and make the sale.

I sold automobiles for 16 years and got a lot of shoppers back on a lowball price and then had a lot of shoppers who had been lowballed by a salesman somewhere else. What happened next was determined by how good of a salesman I was and how well I connected with the customer.

No one ever bought at the lowball price because it was always below what the vehicle could actually be sold for.

A lowball price is used only to get another shot at the sale.

The person who does a job for less than someone else is not a lowballer because, he is doing the job for his original quote.

Oldtimer

Ability
08-15-2004, 02:40 PM
The main thing to remember is not to cut off your nose despite your face.

By pricing yourself so much lower (1/2 the price is really low probably) you bring down the overall prices everywhere and take money out of your own pocket.

When someone who is currently using an LCO comes to me about business I always try to find out what they are currently paying. I emphasize that my prices aren't any better however, I provide quality work.

I never downgrade another's work but I do emphasize my quality.

This way I don't take money out of my pocket, I provide quality work and I keep the industry as a whole making a decent wage.