Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #71  
Old 02-02-2014, 07:55 AM
Roger Roger is online now
LawnSite Fanatic
 
Join Date: Dec 1999
Location: McMurray, PA
Posts: 5,810
"... what the market will bear ..." ---->>> customers set the price.

This principle has nothing to do with grass cutting, it is a basic principle that applies to all business. If otherwise, why have tickets for the Super Bowl dropped rapidly in the past week? (just one of thousands of examples)
Reply With Quote
  #72  
Old 02-02-2014, 08:07 AM
echo echo is offline
LawnSite Bronze Member
 
Join Date: Oct 2012
Location: somewhere out there
Posts: 1,311
Because due to the location/weather the average person doesn't wanna sit in 40 degrees to watch a football game and those that haven't sold their tix by now are doing everything they can to sell them. Resale value has been very low since the beginning due to location and weather unless you have an interest in the team/s playing.

There's always a high and a low price. Just like there are better customers than others. Some don't mind catering to the pita/squabblers and some do. If I have to deal with them it comes at a higher price on their end. If they choose to pay it great. If not I find a better one to replace them.
Posted via Mobile Device

Last edited by echo; 02-02-2014 at 08:12 AM.
Reply With Quote
  #73  
Old 02-02-2014, 10:47 AM
Woody82986's Avatar
Woody82986 Woody82986 is offline
LawnSite Bronze Member
 
Join Date: Jun 2003
Location: DFW, TX
Posts: 1,923
Quote:
Originally Posted by echo View Post
Because due to the location/weather the average person doesn't wanna sit in 40 degrees to watch a football game and those that haven't sold their tix by now are doing everything they can to sell them. Resale value has been very low since the beginning due to location and weather unless you have an interest in the team/s playing.

There's always a high and a low price. Just like there are better customers than others. Some don't mind catering to the pita/squabblers and some do. If I have to deal with them it comes at a higher price on their end. If they choose to pay it great. If not I find a better one to replace them.
Posted via Mobile Device
You still don't understand that the very argument you are using to try to tell everyone you set the price and not the client... is actually the argument saying the client sets the price. This isn't some newfangled idea that applies only to lawn care. It's a basic economic principle, sir. It's been around for a few years. The market will bear what it can bear. I set my prices. You set yours. Jimmy Hoffa sets his. And that's fine and dandy. That's the way it should be. Now here is where you fail to comprehend the principle. We all have set prices, but only certain clients are going to be okay with each particular set of prices. Bob wants Jimmy Hoffa's price, John wants your price, Jim wants my price. The client dictated the price they were willing to pay! You are arguing the same point, but you refuse to comprehend that the individual client determined the price. If the overwhelming majority of clients ended up favoring Jimmy Hoffa's price, then eventually you and I will need to raise or lower our price to reflect the change in the market! Keeping your price as your price regardless of the market situation is lunacy! You and I can determine our price point, but the client will determine which price point they want to pay. Does this explanation make any sense to you now?
Reply With Quote
  #74  
Old 02-02-2014, 12:18 PM
echo echo is offline
LawnSite Bronze Member
 
Join Date: Oct 2012
Location: somewhere out there
Posts: 1,311
And what you don't realize is the customer agreed to a price. They then found a cheaper price. However, the LCO they hired at the cheaper price didnt show, did a poor job, etc... They called me back realizing my higher price was worth it after all. However, I raised my price. They can accept it or deal with another LCO. Many times we think the grass is greener somewhere else but realize it isn't and go back to where we started.
Posted via Mobile Device
Reply With Quote
  #75  
Old 02-02-2014, 03:10 PM
Roger Roger is online now
LawnSite Fanatic
 
Join Date: Dec 1999
Location: McMurray, PA
Posts: 5,810
Quote:
Originally Posted by echo View Post
.... those that haven't sold their tix by now are doing everything they can to sell them. Resale value has been very low since the beginning due to location and weather unless you have an interest in the team/s playing.

....
Wrong. Initial prices for resale were $12,000, but were down in the $2,000 late in the week -- buyers driving the prices. Hotel room prices were much higher a few weeks ago, ... now being left without sales, so they were dropping prices. Their estimates were overinflated on what people would pay, just because it was NYC.

If you don't like that example, explain your thinking to the ex-Apple executive who tried to run JC Penny with "my price or nothing." In a few months of his strategy, sales were dipping, continued to drop, stock prices fell, and he was back on the street looking for a new employment. The buyers said "no" to his pricing scheme. When the new CEO came to JCP, and he instituted more buyer driven pricing, JCP began a recovery.

If sellers always drove prices, there would be no reason for advertising. Advertising is attempting to find the price point where the buyer will buy, yet the business is moving product and/or service at a profit. How do you think holiday sales work? "July 4 blowout prices at XXXX dealership....!" "Labor Day sales at department store XYZ ...!" The pricing management is always seeking to find the price at which the customers will buy, thereby having the customers setting the price points. If the business cannot supply product and/or service at the point where the customers will buy, ... gone! Alternatively, if the business is setting their prices beyond the point where customers will buy, ... gone!
Reply With Quote
  #76  
Old 02-02-2014, 03:27 PM
echo echo is offline
LawnSite Bronze Member
 
Join Date: Oct 2012
Location: somewhere out there
Posts: 1,311
I find this more amusing with each response. Again, I set fair prices and have many happy customers. I don't raise my price unless its a squabbler that leaves and wants to come back. If it would ever get to where all my customers squabbled and wanted a cheaper price I'd find a new line of work...but I don't have that problem. For every squabbler there are many good customers to take their place. I want the good customers who appreciate good/great work at a fair price. I don't have to deal with them trying to lowball me and squabble over a few dollars. Be happy. Those are the ones you guys that feel its okay to cater to can easily pick up.
Posted via Mobile Device

Last edited by echo; 02-02-2014 at 03:31 PM.
Reply With Quote
  #77  
Old 02-02-2014, 03:56 PM
echo echo is offline
LawnSite Bronze Member
 
Join Date: Oct 2012
Location: somewhere out there
Posts: 1,311
Funniest part about those who feel that charging the customer more to take them back is that in many cases the same LCO's are crying about the LCO's who are low ballers. Obviously some arent happy unless they're complaining either way.
Posted via Mobile Device
Reply With Quote
  #78  
Old 02-02-2014, 04:59 PM
Woody82986's Avatar
Woody82986 Woody82986 is offline
LawnSite Bronze Member
 
Join Date: Jun 2003
Location: DFW, TX
Posts: 1,923
You still don't understand the principle that is being explained to you, but that's okay. Not everyone gets it at first. It isn't necessarily an easy principle to understand. You keep maintaining for some reason that since we know the client dictates the price, that we all must be some sort of bottom dwelling low baller. That simply isn't the case. I make my money on high end properties and larger acreage. The one thing you fail to compute is that the client is the one who decides what company to choose. Therefore it is their choice of price. Does explaining it that way make any more sense? I'm really trying to help here. I'm not being sarcastic by any means. It doesn't matter what the price is, the person still has to agree to it or they aren't a client. A person only becomes a client if they have chosen your price. High end clients may not care about the dollar amount, but they still choose your price point or they don't. It's their decision. They choose the price. If they want to do business with you, then they choose the price you quoted. But they don't have to choose you, so you don't dictate the price. You only get to dictate the price as long as your clients wish to pay your price. As soon as they no longer want to, they dictate another price. Whether that is with you or not remains irrelevant to the principle.
Reply With Quote
  #79  
Old 02-02-2014, 05:22 PM
echo echo is offline
LawnSite Bronze Member
 
Join Date: Oct 2012
Location: somewhere out there
Posts: 1,311
Quote:
Originally Posted by Woody82986 View Post
You still don't understand the principle that is being explained to you, but that's okay. Not everyone gets it at first. It isn't necessarily an easy principle to understand. You keep maintaining for some reason that since we know the client dictates the price, that we all must be some sort of bottom dwelling low baller. That simply isn't the case. I make my money on high end properties and larger acreage. The one thing you fail to compute is that the client is the one who decides what company to choose. Therefore it is their choice of price. Does explaining it that way make any more sense? I'm really trying to help here. I'm not being sarcastic by any means. It doesn't matter what the price is, the person still has to agree to it or they aren't a client. A person only becomes a client if they have chosen your price. High end clients may not care about the dollar amount, but they still choose your price point or they don't. It's their decision. They choose the price. If they want to do business with you, then they choose the price you quoted. But they don't have to choose you, so you don't dictate the price. You only get to dictate the price as long as your clients wish to pay your price. As soon as they no longer want to, they dictate another price. Whether that is with you or not remains irrelevant to the principle.
And you obviously don't get it at all. Let me outline it for you to easily comprehend.

1. I showed up.
2. Assessed the property.
3. Quoted them a price.
4. They agreed.
5. We're cutting the lawn on a weekly basis.
6. They decide to look for a better price.
7. I say no thank you, I can't lower the price.
8. They find another LCO at a cheaper price.
9. They decide they want us to service the lawn again.
10. I say sure but its $5 more.
11. They say ok or they say no.
12. They have us service the lawn for $5 more or they find somebody else.

Moral of the story. They did indeed agree to the price. They were our customer.

I know there's a lot of steps there but I really can't make it any easier for you.
Posted via Mobile Device
Reply With Quote
  #80  
Old 02-02-2014, 08:14 PM
Woody82986's Avatar
Woody82986 Woody82986 is offline
LawnSite Bronze Member
 
Join Date: Jun 2003
Location: DFW, TX
Posts: 1,923
You still don't get it. And that's okay. You keep making my point for me but for some reason the point keeps flying right by you. The good news is that even though you don't understand the principle I'm trying to tell you is at the root of all this, in your own head you have a grasp of some bastardized version of it that will achieve the same end goal. It's like trying to tell someone at noon that it's daylight outside but he refuses to agree and simply affirms it isn't dark. You are obviously intelligent enough to understand how to make money and that's what matters in the end. I'm honestly not trying to argue. I'm just trying to get you to see that what you are describing and the principle I am trying to tell you is at the root of it are actually the same thing. But for some reason you just refuse to realize the notion that it is indeed the client or prospective client who chooses the price. Anyway, I'm out on this one. Good luck this season man. I hope we all kick ass and turn a profit.
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 12:12 PM.

Page generated in 0.06918 seconds with 9 queries