Register free!

The Green Industry's Resource Center



Reply
 
Thread Tools   Display Modes
  #41  
Old 06-13-2014, 02:18 AM
Nj shade Nj shade is offline
LawnSite Member
 
Join Date: Feb 2012
Location: Nj
Posts: 228
I don't negotiate, price is my price, same way you don't go to a restaurant and say menu says $25 but I'll give you $19.50. Scroll up to where I first started commenting on here and I explain why I don't negotiate . Huge part of not having to negotiate is your sales pitch, which is a skill that gets better with more practice. I keep copies of my insurance certificates and licenses on me durning sales pitch, show them and explain them to my customers and educate them as to why I am priced more and can't afford to negioate. Would much rather be known as the pricey guy / firm on price rather than the cheap / negotiator to both customers and colleagues. That's not to say I don't offer specials or incentives.

If he was really that good of a customer he wouldn't be breaking your balls over $20!!!! Have an extremely different definition of a good customer!

Your looking at dollar amounts...how much was job total took $20 off of? Should be looking at percentage that your taking off, remember that is your profit your giving away! Don't look at $$ amounts look at % discounts given, % markup on materials etc, % is your friend...will even tell you how your growing. Once you give a deal then every time customer will want for same price or better and always try to work u down on price for anything.

I have a number I have to make per hour, per day, per week, per month to keep my lights on and make it worth while for me to do this. If it means me not working than to get that rate then so be it (not an often problem, booked until 3rd week of July), but didn't invest big $$ in equipment, employees, insurance etc for me to not gross a nice profit on my investment. $20 off a smaller job assuming, done in a few hours x3 of those jobs a day x6 work days in a week, x4 weeks in a month equals $1440 in profit your not just letting walk away!

Baby finally fell asleep so no more late night replies for me tonight!
__________________
www.shadetree-landscaping.com
www.shadetreelandscaping.com
@ShadeTreeNJ on twitter
Reply With Quote
  #42  
Old 06-13-2014, 04:01 AM
TPendagast's Avatar
TPendagast TPendagast is online now
LawnSite Gold Member
 
Join Date: May 2008
Location: Wasilla, AK
Posts: 3,847
Quote:
Originally Posted by 32vld View Post
A lot of plumbing and electrical work is simple.

Though for peace of mind many people will rather pay someone rather then risk turning the basement into an indoor pool or getting electrocuted or burning down the house over saving some money.

However they figure the worse can happen with a lawn is that the lawn gets scalped in spots get grass gets missed by the mower. They rather live with bad service then part with more money to have a professional cut.
yet, ironically, IF the professional DOES mess something up (real or perceived) they are always on the phone screaming about how they can't beleive the lowest bidder could POSSIBLY mess something up?!
Reply With Quote
  #43  
Old 06-13-2014, 10:14 AM
32vld 32vld is offline
LawnSite Gold Member
 
Join Date: Feb 2011
Location: LI NY
Posts: 3,255
Quote:
Originally Posted by jeeperscrow View Post
I agree that is a large % to take off. To go back though to what I originally said, this only happens with a very small number of customers. I guess my thing is if I have time to do them, or my workers have time to do the job, and I'll make a profit still instead of that being off time, then why not?
The over used excuse to low ball. I took less money to fill the schedule.

When the problem is that there is too much staff.

Example a Landscaper has 20 hours a week of mowing. That leaves another 20 to do up sell work. Customer wants hedges trimmed. The Co is booked solid for two weeks. The customer probably has waited two years to get those hedges done. You point that out that those hedges did not grow that much in two weeks. If the customer wants your Co's quality he has to wait two weeks.

Customer can't wait then he has to pay OT rate.

Other businesses charge a premium for expedited service. Landscapers give a discount. Some wrong with this picture.

That is not being professional.

Landscapers complain that they can not afford to pay more because this business price structure can not afford higher wages. Yet they find ways to work for less then they should. Then they endlessly complain about the poor quality of employees out there.

Yet they still find ways to justify working cheap.

Unfortunately this industry is filled with people that do things such as buy 60" mowers and such on credit without enough work to pay for it, or just barley until their business has a problem.

Then how do they fix their problems?

They justify charging less to get the next job.
Reply With Quote
  #44  
Old 06-13-2014, 10:37 PM
HanktheLawnGuy HanktheLawnGuy is offline
LawnSite Member
 
Join Date: Jun 2014
Location: Collegeville PA
Posts: 1
Pricing Thoughts....

At the end of every job our goal is to make a profit, not just stay busy. Im new on the site, but not new in business and a few things I learned in life in Corporate America (salesman) are very true in this business:

First is someone will always do the work/project/sale whatever for less. Either now or later you will lose to a bottomfeeding customer.

Second is that OWNERS should set their price on making a profit. So when I get lowballed in advance by a potential customer who says the last guy did it for $30. I asked why is he no longer cutting if you were happy with price? Answer from customer they broke a window accidently but wouldnt own up to it. I said OK we are $40 per weekly cut (townhouse). I pay taxes and have insurance (offer him a copy of policy). If you want cheap you already know what you will get. I also let him know I or my son is always there with crew. In short...there are not too many businesses where customers tell vendors what they will pay with no repurcussions. We can always walk away or lower if its justified and fits in with other accounts on street etc.

Just dont meet a lowballer...eventually you will be gone fore someone $5 cheaper....look at waht you need to be profitable and its different for everyone. All business is not good business
Reply With Quote
  #45  
Old 06-14-2014, 01:23 PM
205mx 205mx is offline
LawnSite Bronze Member
 
Join Date: May 2011
Location: Nashville, TN
Posts: 1,771
Quote:
Originally Posted by 32vld View Post
Put 'em up, put 'em up.

So I went to look at the original estimate. It was for $385. Job took me 4 hours = $96.25 an hour.

$96.25 - $60 = $36.50 over my target rate. That is why I charged her $240

Being greedy can back fire. That customer an was very happy with the quality of the work, I kept my word and was able to honor my word that if I could lower the price.

Doing the right thing by her/customer just got me a referral that landed me a $555 dollar clean up from a friend of her's.
My bet is doing good work on schedule is what got you the $555 job. I bet you would have still gotten the referral if you'd have done it for the original price. So I'd say you still cost your business $145. I would also say you likely went from "landscape company" to "guy who does lawn type work" in her book- not that it matters.

Sorry to piss in your water balloon, but even without that $555 job, you still lost $145. Say you made 50% on the $555 (which I seriously doubt), that's $275. So essentially you'd net $130 more after you deduct the $145 landscape charity. That's a lot of time and sweat equity for $130. And that's assuming you made 50% on the $550 job. I SERIOUSLY doubt that you did though.

Just food for thought.

Sure you are "busier" but are you better off....?
Posted via Mobile Device

Last edited by 205mx; 06-14-2014 at 01:28 PM.
Reply With Quote
  #46  
Old 06-14-2014, 09:32 PM
32vld 32vld is offline
LawnSite Gold Member
 
Join Date: Feb 2011
Location: LI NY
Posts: 3,255
Quote:
Originally Posted by 205mx View Post
My bet is doing good work on schedule is what got you the $555 job. I bet you would have still gotten the referral if you'd have done it for the original price. So I'd say you still cost your business $145. I would also say you likely went from "landscape company" to "guy who does lawn type work" in her book- not that it matters.

Sorry to piss in your water balloon, but even without that $555 job, you still lost $145. Say you made 50% on the $555 (which I seriously doubt), that's $275. So essentially you'd net $130 more after you deduct the $145 landscape charity. That's a lot of time and sweat equity for $130. And that's assuming you made 50% on the $550 job. I SERIOUSLY doubt that you did though.

Just food for thought.

Sure you are "busier" but are you better off....?
Posted via Mobile Device
Eat this food:

No guarantee that I would of gotten the referral or not .

Though my goal is to make $60 and hour. I over estimated her cleanup time. To charge for about another 2.5 hours that I did not work is not being honest. Being known as honest is priceless.

The $555 dollar job. Between leaf bags, $14, gasoline & 2S oil, $10.

$555 - $24 = $531.

I do not look down at $531.
Reply With Quote
  #47  
Old 06-14-2014, 11:18 PM
eastern Iowa lawn Care eastern Iowa lawn Care is offline
LawnSite Member
 
Join Date: Jan 2014
Posts: 17
I learned my lesson this spring,I went to a lawn and home show and picked up 15 leads but did not have time to meet with the prospect so I just left a quote at the door for lawn care.I did not receive one call for service.I am not a low baller but i can generally get the sale when meeting face to face.If I had met with the prospect I would expected to close at least 13 of those leads. I am a solo operation and when i tell a customer that I will be me treating there lawn and if there is a problem I will know about it before they do and when they call with questions or problems they know they are talking to the owner of the company and the person that treated there lawn and most issues can be solved over the phone.In the future I will make time to meet with the prospect.
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 08:40 PM.

Page generated in 0.06655 seconds with 9 queries