Originally Posted by GearMonkey
I'm earning money and building a client list for the future, while doing strategic upsells. I don't have all the nice and expensive equipment as others and therefore can cut costs. Heck, I don't even burn a gallon of fuel @ $3.31 per day.
Low balling? I doubt that. If a lawn company's business strategy hinges on driving the costs up, then you already failed. This is America where everyone is going to find a cheaper way to do a better job. It's capitalism and competition. I'm sure Kmart said the same things as you when Walmart moved to town. Speaking of Walmart, shopping there sends work overseas instead of keeping jobs here in the US of A for people needing to pay their mortgage and support their families... I don't see you complaining about that.
Bottom line, if someone cheaper is going to put you out of business, then you already failed. In this economy people need to find a business plan that helps cut costs so you can pass that savings down to your customers.
That said, I also under bid on my "computer geek" business to get more clients. I'm not looking to price gouge people. If I can do the same work better for 1/2 the price, I'm going to do it.
I don't think you grasp the idea. It doesn't matter that it "works for you" and you have no overhead. There are people out there that need to actually make money in this business. If you do a lawn that would be $30 from me for $5, soon others will have to drop their prices in order to actually get hired. We aren't bad business men because we "can't cut costs", we just need to make more than 25-40 bucks a day. Some people barely survive even with rates where they should be. But low ballers will be low ballers, feel free to come out my way and you can sub for me, I'll even pay you $6 a lawn.
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