Originally Posted by cpllawncare
And that works until the lowballers raid your area and leave you with the scraps, we were at full capacity and still getting calls so we raised rates and dropped some lower rates just as your supposed to do, then the lowballers came in and took a bunch of the accounts, as hard as we tried to explain why they weren't getting the deal they thought they were, they went ahead anyway, live and learn. customer loyalty is at an all time low, and these accounts were in high end area's even, It was always the same story,your doing a great job but this guy will do it cheaper.
Lol yeah but I found out a little trick over the years, that whole thing is how I used to do things too... But nowadays when I run into that problem of having too much work, rather than raising my prices I start to shut down advertising, and keep my prices down.
Because the customer, all they see is that price, as you noticed they don't care about nothing else.
Today I hardly have any advertising, it's almost all word of mouth, and with the money I am not spending on advertising I can keep my prices lower than the lowest lowballers, and then just to piss them off I tell ALL my customers that if ANYONE comes around and offers to do it for less they should CALL me and I'll at least consider not just matching but even beating that offer, too!
Once those lowballers find out their original $30 lawn that they thought they were going to do for $25 is now $20?
Yeah, they don't bust my lower of the lowest lowballing lowball prices up much any more.
Of course at some point you'll have to rely strictly on word of mouth and that can be a scary proposition in some cases, fortunately what I just described can certainly be made into a gradual process.