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Old 02-05-2013, 11:47 AM
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MOturkey MOturkey is offline
LawnSite Silver Member
Join Date: Feb 2004
Location: Bolivar, MO
Posts: 2,720
I haven't read every reply, but my definition of a "lowballer" is someone who prices their services so low that their profit margin is extremely low, or non-existant. This usually happens because of ignorance or desparation, more often the former. In a capitalistic society, one can choose to charge as little, or as much, as they choose, but often those with little business acumen jump into mowing considering only one expense, the fuel they burn in their equipment. They don't think about equipment replacement, the true cost of operating a tow vehicle, or the perils of operating without liability insurance. They likely work on a cash basis, showing no income, hence are not worried about self-employment taxes or income tax. In all likelihood, their business plan is not long term, but simply a way to seemingly make a few extra bucks for the time being. An example would be a fellow I know who uses his dad's non-commercial Z to mow in one of the communities I service. His approach to the business was to watch other LCO's and see where they were mowing, then approach the property owner and offer to mow for one half of whatever they are currently paying. That, in my opinion, is lowballing, not someone who has little overhead, chooses to live simply, doesn't care about having a new truck, is perhaps single, and bids a $40 yard for $35.
Neill Prater
Dependable Mowing Service
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