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Old 12-11-2012, 01:36 PM
hi_speedreed hi_speedreed is offline
LawnSite Senior Member
 
Join Date: May 2011
Location: Charleston, WV
Posts: 406
People want to talk about business, profit margins, overhead costs and how people need to charge what the market will bear but nobody wants to talk about the elephant in the room. The market is large. If you bump your minimum up to where you are making more money you freely admit there are people who wouldn't or couldn't pay for your services. What you fail to acknowledge is this creates a void in the market.

There is a market for low price. Just like in any business some people just shop price. There is a reason Wal*Mart is so big. They found the niche and filled it. If you notice though there are still higher end retailers. You can still go to Macy's and pay double for pants, you will get much better quality, and people still want better quality. The same goes for mowers. You can order a chinese mower off the internet or you can go get a quality machine made by men and women in the USA and pay more but also know you got a quality piece of equipment.

Some people shop only price; they want the cheapest no matter what. Some people shop only quality; they want the best no matter the cost. Some people shop value; they want a quality product or service but do not want to over pay.

Lowballers are not created by the industry, they are created by the consumer. Somebody also said everything has gone up but the prices for lawn service. Not true at all. Look at any technology product. I have a phone that was $200 and it has more ability than my first computer which was over $900 and that was 17 years ago. Mowers today are faster and more productive than they were 11 years ago. Usually when an industry experiences a technological advance prices fall. This is due to increased productivity. Rates stay the same or even raise but because what used to take 1hr now takes half that time overall price falls.

Last edited by hi_speedreed; 12-11-2012 at 01:42 PM.
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