do clients / prospects think???

Discussion in 'Pesticide & Herbicide Application' started by Efficiency, Sep 17, 2013.

  1. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,520

    I just got an email from a proposal we emailed yesterday asking us to come down 15% on each app. I dont get it. What do these people think? We work on 50% margins??? Taking his deal has us working at cost. I really want to reply back and ask what 15% of his lawn does he want to omit. WTH???
     
  2. phasthound

    phasthound LawnSite Platinum Member
    Posts: 4,560

    Everyone has budgets to meet and are trying to save money. Maybe he got a lower quote from a competitor and he does not realize the value of your superior work.
     
  3. Skipster

    Skipster LawnSite Bronze Member
    Posts: 1,074

    Do you ever think about the margin that the cable company is making when you call their customer care department to complain about how your bill went up again? Do you ever think about the margin that your local gas station owner is making when you complain about gas prices? Do you ever think about the margin that your local car dealer makes when you negotiate for a car? Do you ever try to negotiate prices with your chemical supplier?

    Its just natural to plead your case and try to get the lowest price you can when you buy something. I'm sure you do it when you buy things, too. Something makes me think that you don't just give a guy more money than he's asking for on a product or service because you don't think he's making enough money. So, I can't fault someone else for doing the same thing I do myself.

    Maybe there's a way where you can negotiate a deal that works a least a little bit for both of you. Or, maybe you make less on this account and more on another.
     
  4. RigglePLC

    RigglePLC LawnSite Fanatic
    Posts: 11,774

    Don't give up Rich! Keep persuading; keep talking. Explain how you use premium weed control products--and the competition uses the cheapest. Costs more and its better. Explain how all your guys are experienced and most of 'em speak English. Maybe you can drop one application if its hot in summer, and their budget is limited.
     
  5. RigglePLC

    RigglePLC LawnSite Fanatic
    Posts: 11,774

    Don't give up Rich! Keep persuading; keep talking. Explain how you use premium weed control products--and the competition uses the cheapest. Costs more and its better. Explain how all your guys are experienced and most of 'em speak English. Maybe you can drop one application if its hot in summer, and their budget is limited.

    Whoops--double post. I was try to eliminate my comments accidentally inserted into Skips comments.
     
    Last edited: Sep 17, 2013
  6. foreplease

    foreplease LawnSite Bronze Member
    Posts: 1,895

    I knew a golf course superintendent (who had already decided he was working his last year and retiring) who had his fungicide budget cut in half mid-season by the club's board. For the rest of the year he sprayed only the leftward half of every tee, fairway, and green. The other side suffered with every disease imagineable: dollar spot, brown patch, and finally pythium. They ended up doing a lot of reseeding.

    I think about margins every place I go in, from stores to restaurants. Most of the time I find myself wondering how they are still open. It is a world of high costs and razor thin margins. One of the things I think we are doing to each other - and to ourselves, really, since so much manufacturing has gone overseas - is demanding to mak top dollar and pay bottom dollar for everything. It can not work that way for too long IMHO.

    Efficiency, you are smart enough and have enough customers to know you can't cut your price for this person. Best thing that could happen is the competition gets them.
     
  7. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,520

    What really set me off was his offer of "talking to the neighbors" if we did a great job on his lawn, obviously at his requested discount. Its like me telling my web guy he can put a link on my site if he does a great job at a discounted rate. Beech, please.

    I was laughing as I replied saying we would be glad to omit 15% of his lawn. He took it! lol, so I had to respectfully bow out. What a goofy guy.
     
  8. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,015

    You don't want this customer!

    Customers that want a good deal also want a perfect lawn.
    They will complain and cost you more then your good paying customers.
    There are way too many customers out here that will pay for good service and appreciate your work.

    I would tell them to call Tru Green if they want a good price and don't care what their lawn looks like.

    :)
    Posted via Mobile Device
     
  9. greendoctor

    greendoctor LawnSite Fanatic
    Posts: 8,821

    The vicious cycle downward. By demanding cheap all the time, we basically cut our own throats. There is a reason why everything is made in China, Southeast Asia, or South America and the factories in Detroit or Cleveland are shut down. Too many people decided that it was more important for something to be cheap, rather than good. Wish granted. It gets really frustrating for me because I do not want cheap. I am frugal. Meaning if I buy something, it had better last. I want solid stainless steel and brass, not plastic.

    Riggle has it right. The person who wants things cheap is also going to be looking at every brown spot or weed in the lawn with a magnifying glass. My red flag with prospects is when someone hesitates or negotiates when I give the price. If I do take them, I do not expect to keep them for long. More personally, I do not want other people's money problems to transfer to me. Financial stability is something I look for.
     
  10. TurfWerks

    TurfWerks LawnSite Senior Member
    Posts: 309

    My answer would be "No Sir" I have expenses and labor just like you and cutting our bills by 15% wouldn't cover them. I believe in Rewards for good work, not punishments.
     

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