Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #51  
Old 01-30-2013, 11:54 AM
jrs.landscaping's Avatar
jrs.landscaping jrs.landscaping is online now
LawnSite Silver Member
 
Join Date: Mar 2012
Location: Maine
Posts: 2,362
50% I would walk, we were outbid by 60% a few years ago. He assured them "his equipment was paid for and his overhead was low." We were asked to match his prices and politely declined. Two years later he was bankrupt and we got a raise. Sometimes customers don't know how good your company is until you leave and they hire the other guy.
__________________

Last edited by jrs.landscaping; 01-30-2013 at 12:02 PM.
Reply With Quote
  #52  
Old 01-30-2013, 11:57 AM
weaver weaver is offline
LawnSite Bronze Member
 
Join Date: Sep 2009
Posts: 1,135
Quote:
Originally Posted by jrs.landscaping View Post
50% I would walk, we were outbid by 60% a few years ago. He asured them "his equipment was paid for and his overhead was low." We were asked to match his prices and politely declined. Two years later he was bankrupt and we got a raise. Sometimes customers don't know how good your company is until you leave and they hire the other guy.
Agreed... No way at 50%, would have to walk...
Reply With Quote
  #53  
Old 01-30-2013, 12:16 PM
205mx 205mx is offline
LawnSite Bronze Member
 
Join Date: May 2011
Location: Nashville, TN
Posts: 1,685
I would. Then once you get growing a little more and they are a smaller part of your sales, raise it 10%. You'll have been there a while, they should be happy and comfortable with you. If then they decide to go along, it's not a big deal.
Reply With Quote
  #54  
Old 01-30-2013, 12:27 PM
weaver weaver is offline
LawnSite Bronze Member
 
Join Date: Sep 2009
Posts: 1,135
Quote:
Originally Posted by 205mx View Post
I would. Then once you get growing a little more and they are a smaller part of your sales, raise it 10%. You'll have been there a while, they should be happy and comfortable with you. If then they decide to go along, it's not a big deal.
He's been mowing it for 30 years... What's it gonna take for them to know or get comfortable with him?

Reply With Quote
  #55  
Old 01-30-2013, 12:53 PM
205mx 205mx is offline
LawnSite Bronze Member
 
Join Date: May 2011
Location: Nashville, TN
Posts: 1,685
Quote:
Originally Posted by weaver View Post
He's been mowing it for 30 years... What's it gonna take for them to know or get comfortable with him?


Do you know what merger means? New players!

:-)
Posted via Mobile Device
Reply With Quote
  #56  
Old 01-30-2013, 12:57 PM
weaver weaver is offline
LawnSite Bronze Member
 
Join Date: Sep 2009
Posts: 1,135
Quote:
Originally Posted by 205mx View Post
Do you know what merger means? New players!

:-)
Posted via Mobile Device
Ya but that was two seasons ago, the new people just recently asked for the 5% cut. The old managment is the one's who asked for the 50%...
Reply With Quote
  #57  
Old 01-30-2013, 12:58 PM
205mx 205mx is offline
LawnSite Bronze Member
 
Join Date: May 2011
Location: Nashville, TN
Posts: 1,685
Well 50% is out of the question. Our industry's standard is 25-45 % profit margins
Posted via Mobile Device
Reply With Quote
  #58  
Old 01-30-2013, 03:40 PM
mowman74's Avatar
mowman74 mowman74 is offline
LawnSite Member
 
Join Date: Jan 2013
Location: springfield, mo
Posts: 2
Im not surprised with that offer. TAKE IT! Make it up elsewhere. Dont loose a contract over a 5% drop.
Reply With Quote
  #59  
Old 01-30-2013, 03:48 PM
Groomer's Avatar
Groomer Groomer is online now
LawnSite Bronze Member
 
Join Date: Jun 2006
Location: south west ohio institute of lawn grooming
Posts: 1,296
Toro, I'm curious to know your market demographics? Sabina shows a pop. of around 2 thousand, do you service columbus and those areas? Nice to be in Fla., you ain't missin' anything up here!
Reply With Quote
  #60  
Old 01-30-2013, 03:57 PM
Toro 455 Toro 455 is offline
LawnSite Member
 
Join Date: Sep 2012
Location: sabina oh
Posts: 238
It was during the drought! It amounted to two mowings at the reduced rate. Then when fall arrived it was back to normal...Well normal plus core aeration, fall fert & weed control.
It sure sounded generous when I agreed to it though.
And I kept my job. At the old rate. Well, the old rate minus 5%. I'm doubting at this point that they'll even apply the 5% discount to me. It was just a blanket letter to all vendors.
To keep these accounts a person at least has to appear like they're trying to go along. I can wait for this to blow over.
If I made an issue over this they'd have 60 people trying to bid this job out from under me. Probably for less than the 95% they'd be paying me. This customer doesn't accept outside bids. They're OK with me. And I'm going to make sure it stays that way.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 01:50 PM.

Page generated in 0.07635 seconds with 9 queries