Deep pockets

Discussion in 'Lawn Mowing' started by Brianslawn, Apr 8, 2006.

  1. Brianslawn

    Brianslawn LawnSite Silver Member
    Posts: 2,004

    lets say a large company moves into town. everyone is raising their prices due to gas, etc., like they should. but this new company has the marketing power, man power, and euipment to snatch a large share of the market real quick. they also charge almost half what everyone else does. not only are you not getting any new calls, but youre starting to loose existing customers to them. youre down 25% the first year. yes, you may offer a more personalized service, but 80% of people in your area care more about price and arent willing to pay an extra $20 a week for that personal touch.

    do you lower your prices to compete? keep them the same and hope your customers stay? would you be afraid to raise them if gas kept going up?

    would you quit mowing and go back to walmart or ask new company for a job?

    the new conglomerate also has the fert, fence, and landscape market cornered, too, so those arent options.

    what will you do in the future of the lawn biz?

    i await your replies.
     
  2. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    From what I just read on here today, just worry about being "the best". Everything else will take care of itself. :dizzy:
     
  3. Duck Dodger

    Duck Dodger LawnSite Senior Member
    Posts: 347

    We have a company just like that here. I just hope the government passes all the illegal stuff they would lose a good bit of their employees. Like jodi said just be the best you can. They can afford much more advertising and look for less of a proffit margin but in the end if you do good work for reasonable money you should have work. I always feel like we're on the brink of really making alot of money than something happens and I am humbled once more. I have learned to just be happy making enough money to live well and love what I am doing. Good luck I know it can really frustrate you.
     
  4. Envy Lawn Service

    Envy Lawn Service LawnSite Fanatic
    Posts: 11,062

    Sometimes the outlook is grim... and it just seems to keep declining.

    Personally, I'd rather be down 25% from lost work than down 25% from lost profits on my block of business.

    About all you can be in a situation like that is an OBSERVANT BUSINESS MAN.
    Look for areas (besides pricing) where they are screwing up. Then exploit it to your benefit.
    Look for opportunities they are overlooking or not interested in.
    It you can make it work for you, take advantage of the opening.

    And always remember to keep the difference between you and them in proper perspective.
    They are in the business of selling labor.
    You are in the business of providing a service for a fee and selling yourself personally.

    Exploit these items in sales calls and advertising.
     
  5. Total Lawn & Landscape

    Total Lawn & Landscape LawnSite Member
    Posts: 18

    Brian---
    That company wouldnt happen to be an offshoot of the Oklahoma company coming to AR? HHHMMMM.
    TL&L
     
  6. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    First thing I would do is look at what can be done to trim expenses.
     
  7. TURF DOCTOR

    TURF DOCTOR LawnSite Silver Member
    Posts: 2,138

    That's it here we lose some,but we add extra services to make up and new accounts.
     
  8. Jpocket

    Jpocket LawnSite Silver Member
    Posts: 2,278

    In that case if you want to stay in business, you gottas start running lean and mean, maybe drop your rates a bit, and pour on the advertising. Get a bigger YP add, put postcards/flyers more frequently, and keep your customers happy. The biggest thing would be to watch spending, and make everything last so that you can charge a few dollars less.

    Personally I don't know if I would do the above, or start looking at my exit options.
     
  9. traman

    traman LawnSite Senior Member
    Posts: 712

    it doesn't have to be a company with deep pockets that can cause that affect. in my area there are what i call mom & pop backers . in other words ,all the parents want is there kid to get a job and start doing something with there life ,so they buy everything for them, from the truck all the way down to a push broom plus all gas . heck he doesn't care about profit ,he doesn't have any overhead ,if he can make 10 or 12 dollars an hr he doubled what he can get working for the man ,and most still live at home so again no overhead ,no rent-mortgage water elc cable or even food .am not saying there are not legal or do not have insurance ,its just someone else that can cut into your pie ,he can basically charge anything he wants ,and theirs no way you can compete with that ,luckily down in Florida there's so much work that who ever you lose ,you can pick up new accounts quickly
     
  10. AintNoFun

    AintNoFun LawnSite Bronze Member
    Posts: 1,807

    GASP, you mean you can lose lawns while offering a personalized touch service. this is bad news to ALOT of people on these forums that put a lot of faith in that..


     

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