No ones a Lowballer

[fastlane]

Originally Posted by mikeypizano

Started out with cheap stuff, saved my money and paid CASH.

My post has nothing to do with being a lowballer or not. If you pay CASH your expenses are about the same as someone that has a loan come tax time.

[mikeypizano]

Originally Posted by fastlane

My post has nothing to do with being a lowballer or not. If you pay CASH your expenses are about the same as someone that has a loan come tax time.

My point was I don't have a payment to make every month.

[Landscape Poet]

Originally Posted by mikeypizano

My point was I don't have a payment to make every month.

I do , it is called a mortgage, a utility bill, a cable bill, student loan payment, insurance payment - truck, home, car, equipment business, water bill, grocery bill, tax bill, employee wages bill, retirement savings bill.....lots of bills ....no equipment bills however.

[JDGlandscape]

Obviously there is such thing as a lowballer. The only reason this is even considered by many people is because everyone has a different opinion of what a lowballer is. I have a fully insured and legal business. Other people do not, and therefor they can charge a lower number than I can. I know of a few "lowballer" companies (by company I mean solo operations) around here and they are all (no offense intended) extremely trashy people who are very rude and have nothing at all to show for their work.They drive around in their old POS truck (or minivan) and work while smoking without their shirts on. They just do it because they "think" they are making money.

I am not speaking for every region of the country but around here, the people who are considered lowballers are the ones driving around in old trucks that do not pay anything and have no common sense because of the fact that they do no realize that they are not making any money, and they do not last, or they do not pay taxes or insurance.

Dont take offense to when I said driving around in old trucks, because I do the same, non of my equipment is even from the last two decades. But I am a fully legitimate business and I know my expenses, so I charge accordingly, or at least fair market value. The ones who say "there is no such thing as a lowballer" are the ones who do not know what they should charge and are trying to defend themselves.

But then again everything needs to be put into perspective, because honestly, I have been called a lowballer even though my prices are almost always in the top or middle of the pack, just because I got a bid over someone who was just a little more than me.

In my opinion a "Lowballer" is someone who has no idea of the cost to do business and the ones who are not fully insured and legitimate.

[JDGlandscape]

Originally Posted by mikeypizano

My point was I don't have a payment to make every month.

Does your equipment never age or get worn out? If you do not have a payment right now you should be charging the same amount as if you did have a payment and putting the money aside to replace the equipment you have when it gets time.

[GMLC]

Why in the world would anyone charge less than the going rate and leave money on the table? If you worked for someone else and the wage was $20 per hour would you offer to work for $10 per hour because you have less bills? Of corse not!

Lowballing only drives the industry's prices down and hurts everyone! Someday even a lowballer may want to expand so dont ruin your own market!!

Sometimes I think lowballers are just lazy and dont want to do market research or figure true business costs....

The real question should be where does lowballing begin? Even walmart isnt half the price of its competition!

On the flip side one shouldnt over charge either becuase they are in to much debt. I feel I am fair and all my pricing is in the upper mid range for my market.
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[clydebusa]

Originally Posted by smallstripesnc

If you can cut 10 lawns a day at $25. $10 of that is expenses so thats $2000 a month for expenses and $12000 in a 6 month season and the $15 profit is $3000 a month. Solo $12000 covers taxes, insurance, fuel, mower and truck maintenance etc...and $18000 profit is plenty to alot of ppl especially ones without q job.
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This is .

[clydebusa]

The king of all low-ballers Wal-Mart. But successful!

[GMLC]

Another thing most lowballers fail to figure is retirement savings. You need to save for retirement just like any other job accept its all up to you. No matching or profit sharing from your employer. And if you dont have health care through your spouse its very very expensive!!!
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[Landscraper1]

Originally Posted by smallstripesnc

It seems that everyone on here mentions the term "lowballer" and define a lowballer as someone with a cheaper price. But really no one is a low baller. There is no "market average" for lawn care and everyone's operating expenses are different. Not everyone is driving a gas sucking V8 truck, a huge trailer, and a 60 inch zero turn with a 35HP engine, etc...

If the expenses are lower then you can charge lower prices and still make plenty of profit. So when you say someone is a lowballer because they only charge $30 for the same lawn you would charge $45 how are they a lowballer?

If they are reliable, do a good job, have a lower operating cost which enables them to charge less and still make profit what makes them a lowballer?

Sure some people want to make more than others but still no one is a lowballer since too many things go into the price that someone charges.

Just because someone is the lowest price does not make them a low baller. But if they price well below the average price (like 20%plus less) then yes, they are low ballers. Believe me I have my overhead down as far as possible. I don't think their are many companies in my class, in my area, that run as lean as I do.

I still cannot compete against the LC that hires illegals, pays no workers comp, no overtime, and deals cash, not to pay taxes. It's either that or a newbe comes in, not knowing any better and under prices, just to get work.