Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #11  
Old 01-20-2012, 04:38 PM
cpllawncare's Avatar
cpllawncare cpllawncare is offline
LawnSite Silver Member
 
Join Date: Apr 2011
Location: Greenville, SC
Posts: 2,647
Well said MD Lawn.
Reply With Quote
  #12  
Old 01-20-2012, 07:59 PM
MDLawn MDLawn is offline
LawnSite Bronze Member
 
Join Date: Jun 2008
Location: Western NY
Posts: 1,284
Quote:
Originally Posted by cpllawncare View Post
Well said MD Lawn.
Thanks.

I just get frustrated how people are afraid or think it's so wrong to make money. If you offer a service for a price and they agree and you deliver a superior product and they're happy.....then no one got ripped off. If you don't deliver and your quality stinks, then yes you ripped them off. I think more people whine about people getting ripped off because they themselves cannot acquire work on a certain price level.
Posted via Mobile Device
Reply With Quote
  #13  
Old 01-21-2012, 11:36 PM
landscaper22's Avatar
landscaper22 landscaper22 is offline
LawnSite Senior Member
 
Join Date: Oct 2007
Location: Southeast
Posts: 819
My basic thoughts on how high my price is at a particular time boils down to supply and demand. Basic economics. What I mean is, if I find myself working nearly solo at that moment and time, I will go high end on price quotes. I think in the back of my mind there is no way I can even really make time for this, but if the price is right I will do what I have to. But if my employee situation has left me high and dry, and I pick up a lot of customers for a lower price, then I end up screwing myself. Doesn't make sense to kill myself for little profit.
But, if I have a great employee situation I may price the job lower, but I will still make a profit. I figure it is extra work for my employees and if they are doing the majority of the work, and I am making a profit, then it gives me a chance to show the customer how dependable we are, and how we want to provide excellent service. Then, during that year of service, I evaluate and can make adjustments if I need to.
Generally, I price on the high end anyway. It weeds out the customers I don't really care for.
I don't really agree with the whole volume thing, it just boils down to my situation at that particular time. If my demand is high, my price goes up. If I have an employee itching for more hours, my price may go down to almost guarantee a job assuming the employee is a good employee and I want to keep them around.
Reply With Quote
  #14  
Old 01-22-2012, 08:12 AM
wbw's Avatar
wbw wbw is online now
LawnSite Platinum Member
 
Join Date: Oct 2004
Location: houston tx
Posts: 4,206
Quote:
Originally Posted by MDLawn View Post
Thanks.

I just get frustrated how people are afraid or think it's so wrong to make money. If you offer a service for a price and they agree and you deliver a superior product and they're happy.....then no one got ripped off. If you don't deliver and your quality stinks, then yes you ripped them off. I think more people whine about people getting ripped off because they themselves cannot acquire work on a certain price level.Posted via Mobile Device
Different business models require different plans.

Personally I have not run into this whining in person. I am a salesman at heart. I made a living for many years in full commission sales. I can acquire work at any price level. I can acquire more volume, faster at a competitive price point. If I were twenty years old and lived at home (I am not implying that you are or that you do) I would slowly build a clientele of hand picked customers and service them myself. However, I am an old fat man and I need to generate more income than that, faster than that.
Reply With Quote
  #15  
Old 01-22-2012, 07:14 PM
MDLawn MDLawn is offline
LawnSite Bronze Member
 
Join Date: Jun 2008
Location: Western NY
Posts: 1,284
Quote:
Originally Posted by wbw View Post
Different business models require different plans.

However, I am an old fat man and I need to generate more income than that, faster than that.
Agree

And I understand your position. I just know that if you go for low priced work that is what you'll be known for and stuck at. If you're just adding "filler" fo make ends meet then maybe it works. But if you need income......
Posted via Mobile Device
Reply With Quote
  #16  
Old 01-23-2012, 11:17 PM
DA Quality Lawn & YS's Avatar
DA Quality Lawn & YS DA Quality Lawn & YS is offline
LawnSite Fanatic
 
Join Date: Sep 2007
Location: Rochester, MN
Posts: 7,859
OP, great, you just started a WalMart thread. No place for that in our industry.
__________________
7x14 Stealth SE Enclosed with 48" side ramp
08 Toro Z400 48" deck, 21HP Kaw with EZ Vac twin bag
09 Exmark Turf Tracer HP 36"
21" Toro SR4 Super Recycler
Stihl KM90 Kombi w/ straight shaft trimmer & tiller heads
Husqvarna 125B Blower
PG Magnum
Turfco XT5 Aerator
Turfco LS-22 Overseeder
EcoLawn 200 Applicator

I can do all things through Him who gives me strength.
Philippians 4:13
Reply With Quote
  #17  
Old 01-24-2012, 09:41 AM
MDLawn MDLawn is offline
LawnSite Bronze Member
 
Join Date: Jun 2008
Location: Western NY
Posts: 1,284
Quote:
Originally Posted by DA Quality Lawn & YS View Post
OP, great, you just started a WalMart thread. No place for that in our industry.
Well each has a place just like these low priced high volume lawn companies. The cater to poor or cheap people. They are easy to acquire because, lets face it, they are the masses. Yes they do destroy some good businesses and convert customers who once did pay for quality. But thats the way it is now. "Where can I get the cheapest." Instead of loyalty to service most go wherever the cheapest price can be. I mean people have died or been hospitalized on black friday because of "cheap". Me I go where I know I can get expert help when I need it. Take a small locally owned electronics store vs. big box store. I know for a fact that the small store can and will give me the best service and support after purchase. The other stores make you call the 1-800 number to talk to someone in another country. Maybe that small store sells me a TV and surround sound for a couple hundred more but the service sets them apart. Not everyone shops there though. But the people who do are willing to pay that premium.

When I started this very small business I have I knew a guy who sold eXmarks. He gave me a honey of a deal on a 48" turf tracer and EVERYTHING else I buy. I keep going to him for stuff because I'd rather support him and he'll give me a better deal than some of the box stores. Even if he asked me to pay full price I wouldn't question him, but he wont ask full price or he'll throw in extra stuff. Why do I go there? He gives me the best service. I've called him sooo many times about problems and he takes his time to give me ideas. Thats customer service and I want that. Plus I tell everyone I know to go there to buy things that I know they sell.

For me I want the customer that appreciates what I do for them. These people have a check in the mail the day or two after your invoice goes out. They come out to talk to you and ask "Haven't seen you in a while, how's everything going?" They compliment your work each and every time you do get to talk to them. And when there is an issue or complaint both sides can easily come to an agreement to remedy the situation. Also you find yourself doing small extra's for these people because of this relationship. They value the service you bring and you value their commitement to you. It's a win win for both. These customers are harder to get but I can say that these ones are the ones who are on top of my quickbooks "Income Summary By Customer". I have a few duds too that are on the bottom.

For the guys who are doing the high volume low price route their customers just dont fit into my plan and thats ok. Just like the shoppers at the large cheap stores will never shop at that small specialty TV place.

I want to be the small specialty TV store. Excel at service that people are willing to pay for. Take more time to do, um yea. But the reward for your efforts can be worth it.
Reply With Quote
  #18  
Old 01-25-2012, 09:58 PM
landscaper22's Avatar
landscaper22 landscaper22 is offline
LawnSite Senior Member
 
Join Date: Oct 2007
Location: Southeast
Posts: 819
Quote:
Originally Posted by MDLawn View Post
I want to be the small specialty TV store. Excel at service that people are willing to pay for. Take more time to do, um yea. But the reward for your efforts can be worth it.
Yep, you end up with a lot less headaches that way. Leave the cheap customers for some other lawn service. Those people go through lawn services like water.
Reply With Quote
  #19  
Old 01-27-2012, 07:03 PM
wbw's Avatar
wbw wbw is online now
LawnSite Platinum Member
 
Join Date: Oct 2004
Location: houston tx
Posts: 4,206
Posted via Mobile Device
Reply With Quote
  #20  
Old 01-27-2012, 07:08 PM
wbw's Avatar
wbw wbw is online now
LawnSite Platinum Member
 
Join Date: Oct 2004
Location: houston tx
Posts: 4,206
Which store makes the most money?

I can almost guarantee you that the high volume guy does. I know that there are exceptions to every rule but I think it is almost impossible to make much more than 100k in the high end business where you pamper your select clients.
Posted via Mobile Device
Reply With Quote
Reply

Tags
discounts , low price , pricing , sales volume

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 11:04 PM.

Page generated in 0.08516 seconds with 7 queries