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  #21  
Old 05-04-2013, 01:26 PM
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clydebusa clydebusa is offline
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Location: Tulsa Oklahoma
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Quote:
Originally Posted by Landscraper1 View Post
Commercial and Residential are very similar. Some are price driven and others care more about quality. At least in the commercial market, we can compete on a more level playing field. In other words, if you don't have worker's comp or high liability Ins, you can't even bid on my jobs. Residential, anyone can bid on.
I find this to be true, all of my commercial require and expect to get confirmation of insurance.
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  #22  
Old 05-04-2013, 04:09 PM
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Valk Valk is offline
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Location: Eastern KS
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Originally Posted by Valk View Post
How many times over 10 years have you increased the price?
I asked this question because when I've performed scheduled work for the same client...I've generally raised the price 2-4x over 10 years time. So basically, anyone else who bids this job will be a lowballer since our industry doesn't really tend to keep up with inflation.
Just take the gist of my observation...cuz I'm not arguing with anyone here.
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  #23  
Old 05-04-2013, 04:54 PM
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clydebusa clydebusa is offline
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^^^^ This is so true ^^^^^ prices stay the same year after year for the most part ^^^^^^
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  #24  
Old 05-04-2013, 04:58 PM
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Landscraper1 Landscraper1 is offline
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Location: Southeastern Ma.
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Quote:
Originally Posted by Valk View Post
I asked this question because when I've performed scheduled work for the same client...I've generally raised the price 2-4x over 10 years time. So basically, anyone else who bids this job will be a lowballer since our industry doesn't really tend to keep up with inflation.
Just take the gist of my observation...cuz I'm not arguing with anyone here.
.02
I would not say that. Just because someone bids lower than you, does not make them a "low baller". A "low baller" would bid much lower, where it wouldn't matter if you never increased your prices in 10 yrs, they would have still beat it.
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  #25  
Old 05-04-2013, 05:06 PM
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Landscraper1 Landscraper1 is offline
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Quote:
Originally Posted by Valk View Post
How many times over 10 years have you increased the price?
Most of my contracts are for 3 yrs. Every 3 years, I almost, always raise my prices. If I am making a healthy profit on the account, then I might just raise it a couple points. If not, I will raise it to where I need to. Either way the price will be locked for 3 years.
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  #26  
Old 05-04-2013, 06:27 PM
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Blade Runners Blade Runners is offline
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Location: Woodlawn, TN
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Quote:
Originally Posted by Landscraper1 View Post
Haha, I knew my earlier post would get someone going.
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  #27  
Old 05-04-2013, 09:45 PM
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MOturkey MOturkey is offline
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Join Date: Feb 2004
Location: Bolivar, MO
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Quote:
Originally Posted by ringahding View Post
I know we are in different markets. Our commercial sites get us through our crazy winter months, not the residential.

No way am I saying give up on residential (EVER), but I have to disagree with you not pursuing commercials.

What could/would you do different to keep these commercial accounts?
The market doesn't really make any difference. You are probably a larger operator than I, with payroll to meet all year around. I'm solo and don't want to do anything in the winter!
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  #28  
Old 05-04-2013, 09:54 PM
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MOturkey MOturkey is offline
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Location: Bolivar, MO
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Quote:
Originally Posted by clydebusa View Post
All these examples are true and true with homeowners.
Agreed. I've been screwed seven ways to Sunday by residential customers as well. However, I have only lost, to the best of my recollection, one residential customer in 10 years due to pricing, IF I serviced the property for one or more seasons.

In other words, I've never had an existing residential customer call and ask for a bid and take bids from others. Many commercial accounts insist on bidding on a yearly basis, and most will drop you over a few dollars, no matter how high the quality of your service.
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  #29  
Old 05-04-2013, 10:04 PM
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Snyder's Lawn Inc Snyder's Lawn Inc is online now
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Join Date: Feb 2011
Location: Kirksville Mo
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98% of the LCO here don't carry Worksman Comp So the Comm. Jobs that requires WC that is what I target

I wish City make it a requirement to get a business license to have WC to do lawn work It would knock out some or it will make the rates go up

My company income is 50% mowing 50% Landscape/hardscape
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  #30  
Old 05-05-2013, 11:13 AM
Tom-N-Texas Tom-N-Texas is offline
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Join Date: Aug 2004
Location: ft worth texas
Posts: 370
Quote:
Originally Posted by meets1 View Post
Got a call today from a business we do and have done for over 10 years. 1/2 block from our shop. They decided on a new LCO this year. Front office was like a golf course plush, we mowed that baby and made it pop. Always did an excellent job. About 2 hours, with one machine and one guy about the same for trim and blow and pickup through out landscape. $60 was my price. Along the back of this building (manufacturing plant) was a 40 wide enbankment that was tough to mow but would take our WAM about 2 hours to do. This area was large but just to mow with stuff, manhole covers, etc. $125 They told me that the bid they took was 60% less on the open area and 50% less on the office area. Then he proceeds to tell I am sure they will not match your quality of work but were after the low cost blah blah blah eceonomic thing etc.

Then I lost another and there reason was this new guy out there is struggle family man, house payments, 2 kids and really needing the work. Beside the guy says, your an established business so you'll be ok. I mean what the .......... I just dont get it.

I guess just a little rant and venting for now.
sorry to hear you lost the account...sucks to make a place "pop" for a fair price and then get canned.......but you have to remember that this is business, not personal: you have to look at it from the customer's perspective: he's responsible for his company's finances and he found a way to (theoretically) save money......so don't take it personally. My guess is that this new crew won't last long so if you'd like the account back, tell the customer that you'd like him back and to keep your card.
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