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Old 10-19-2012, 08:54 PM
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Think Green Think Green is offline
LawnSite Silver Member
Join Date: Jan 2009
Location: Arkansas--Mississippi flood plains
Posts: 2,746
I read that article in Turf Magazine of last month's issue.
The article was based on lowballing tactics.
The cliff note's version relates to a smaller company knowing their costs, cutting out useless expenses, and staying on top of their finances. If LCO A bids 2500.00 a month for services and LCO B bids 2100.00 a month, then one of them knows a way to cut expenses to be competitive. If LCO C bids 1200.00 for the same job then they obviously don't know any better.
As far as a large LCO company competing out the smaller guys will never end as they have the staying power to survive.
Either we become more expense wise and reduce costs by diverting useless labor, living habits, and useless spending habits, or be less competitive and discontinue to grow in reputation.
Since customers are buying relationships with their service providers, being at a comfortable profit margin works for most people. However, larger accounts just want the service done for the cheapest price available. If a LCO don't know the market and cannot bid efficiently, they will get the work and the work will lose their shorts and shirts. Next season, they will either expand beyond the profit margins or expand toward the file 13 area.
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