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  #51  
Old 02-05-2013, 09:52 PM
32vld 32vld is offline
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Quote:
Originally Posted by z71tiger View Post
For some reason I started think this same thing the other day. I'm sure some people would think I'm a lowballer but, I have no overhead and I'm solo. Our profit margins could be the same and I'm charging less. Not my fault your in debt or greedy.
It is called leaving money on the table.

If every one else is getting $50 a lawn and you want to do it $35 because you think you have no overhead.

You have just ruined the market for your area.

You are now losing $15 on that job. Yes losing $15 dollars because you chose to leave money on the table.

You think you have no overhead. Until you have an accident, get sued and not have business liab. insurance.

No overhead because you are not setting aside money to buy replacement equipment, or new equipment trucks to expand.
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  #52  
Old 02-05-2013, 09:53 PM
newguy123 newguy123 is offline
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Okay I just finished reading all the posts...anyways, remember justmowing.com?

He starts his lawns at $23, granted they're probably 5k sq ft of grass, however, this guy would probably be deemed by many on LawnSite as a lowballer.

Yes he charges low prices, generally speaking; but I'm not sure he could be called a low baller. In 2005, he had over 2K properties. He's probably doubled or tripled since then.

The point all of this is...are there low ballers? Sure, but even if your price for a lawn is below that 20% market differential, doesn't mean you're a low baller, etc. Again, justmowing.com was called a low baller, etc. and yet he probably kicks everyone's butt on LawnSite...

My 2 cents.
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  #53  
Old 02-05-2013, 09:57 PM
hi_speedreed hi_speedreed is offline
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Location: Charleston, WV
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Quote:
Originally Posted by THORNTON SERVICES LLC View Post
In my opinion most of us have been a low baller at one time or another when starting our business , as you grow your business get insurance , start paying uncle sam his money , costs go up and so does your price. Along the spectrum every one has a place and the entire system could not operate without everyone , yea it sucks when someone takes your business , but i don't know how many time i have had someone cancel for a better price just to have them come running back to us , and you know when customers do that they usually don't fall for the low price thing again. The low ballers have a important role they care for lawns that would normally not be able to have a lawn service and these are customers that most legit company's would not want anyhow , and the bottom line is they make the legit company's look good. People will pay for quality and low ballers do not affect this , let them do there thing not worth stressing over , and most people get there start doing this , heck i remember when i was 14 push mowing lawns in the trailer hood for 5 or 10 bucks each , but i wasn't trimming or anything like that , i wasn't taking anyone elses business , no one wanted those lawns , low ballers actually make the legit company's look good. Just my opinion . I meant no offense to any one who disagrees.
This is an important point. Any company that cries about lowballers has very little understanding of a free market economy. Lowballers fill a void. Lets say you would never drop the gate for less than $45. There are people who will flat out say they will never pay more than $25 for their lawn to be cut. If you won't cut for less than $45 these people would never be your customers. You have disqualified them and created a void in the market. Smart business people see voids in the market and fill them. I am not saying all owners that you would consider a lowballer are smart business people. I am saying free markets are driven by the consumer not the owners of business.

Consumers dictate the cost of materials and services by controlling demand. If you are in high demand, your price goes up. Eventually people just stop purchasing at the high price. This creates a low price void that is primed for someone to come in and charge a lower price and take all customers that want service at the lower price. As the market gets flooded with people who charge a low price demand lessens. You can get anybody to do something for cheap. So businesses dissolve due to lack of revenue. After enough dissolve, demand rises and the cycle repeats itself.
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  #54  
Old 02-05-2013, 10:05 PM
Darryl G Darryl G is offline
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Quote:
Originally Posted by newguy123 View Post
Okay I just finished reading all the posts...anyways, remember justmowing.com?

He starts his lawns at $23, granted they're probably 5k sq ft of grass, however, this guy would probably be deemed by many on LawnSite as a lowballer.

Yes he charges low prices, generally speaking; but I'm not sure he could be called a low baller. In 2005, he had over 2K properties. He's probably doubled or tripled since then.

The point all of this is...are there low ballers? Sure, but even if your price for a lawn is below that 20% market differential, doesn't mean you're a low baller, etc. Again, justmowing.com was called a low baller, etc. and yet he probably kicks everyone's butt on LawnSite...

My 2 cents.
Yeah, $23 to mow a lawn that meets about 100 conditions with a max growth of 2 inches. That's called a lure.
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  #55  
Old 02-05-2013, 10:19 PM
newguy123 newguy123 is offline
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Quote:
Originally Posted by Darryl G View Post
Yeah, $23 to mow a lawn that meets about 100 conditions with a max growth of 2 inches. That's called a lure.
Yeah...maybe. But with over 5K weekly mowing customers it works.
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  #56  
Old 02-05-2013, 10:32 PM
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SECTLANDSCAPING SECTLANDSCAPING is offline
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Quote:
Originally Posted by newguy123 View Post
Yeah...maybe. But with over 5K weekly mowing customers it works.
with 2wd s10s, 21" push mowers, it kinda works.

The majority of us use big mowers, big trailers and big trucks. So we can do big work. This leads to big bills, big repairs, and big money.
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  #57  
Old 02-05-2013, 11:52 PM
newguy123 newguy123 is offline
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Quote:
Originally Posted by SECTLANDSCAPING View Post
with 2wd s10s, 21" push mowers, it kinda works.

The majority of us use big mowers, big trailers and big trucks. So we can do big work. This leads to big bills, big repairs, and big money.
You're absolutely right...the key to justmowing.com was, as you stated, 2wd, 4-cylinder trucks.
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  #58  
Old 02-06-2013, 04:39 AM
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jrs.landscaping jrs.landscaping is offline
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Quote:
Originally Posted by newguy123 View Post
You're absolutely right...the key to justmowing.com was, as you stated, 2wd, 4-cylinder trucks.
Hiring labor from another country doesn't hurt either
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  #59  
Old 02-06-2013, 12:12 PM
newguy123 newguy123 is offline
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Quote:
Originally Posted by jrs.landscaping View Post
Hiring labor from another country doesn't hurt either
Yeah...he did state that his employees were very well paid. They were paid on piece work, but the guy driving averaged $16/hr and the helpers $12/hr or more. That's a lot more than a lot of companies in my area pay their employees.
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  #60  
Old 02-06-2013, 12:20 PM
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SECTLANDSCAPING SECTLANDSCAPING is offline
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Quote:
Originally Posted by newguy123 View Post
Yeah...he did state that his employees were very well paid. They were paid on piece work, but the guy driving averaged $16/hr and the helpers $12/hr or more. That's a lot more than a lot of companies in my area pay their employees.
Did you talk to the workers? I mean do you speak spanish.
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2 FS55/FS90/FC95/2 KM90/L322/L326/TR2350S
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