Business ManagementLawn Care and Landscape business owners discuss business related issues, taxes, marketing, employees, licenses, advertising, software, scheduling, billing, insurance, associations, magazines and more!
I think that is a good idea for the short term but will cause you problems in the long run. My first lawn care company we took the lowballing approach and gained many customers fast. We soon figured out we weren't making any money we were actually loosing money. As soon as we went up on our prices we lost almost all our customers. The lesson i learned was price should never be used in gaining customers. Give a percent off for the first mow and throw in a referral program and that should help but stay away from the lowballing even if it's the first mow. Imagine if you get 500 customers at that price. Your loosing thousands and thousands of dollars.
I agree, but this technique isn't about lowballing, it's about getting the phone to ring so you can get in front of customers and sell your services at your normal rate which hopefully isn't at money losing level, at least mine aren't, isn't two free cuts worth a years worth of service at normal rates plus the chance to upsell even more profitable services.