Do you guys ever drop your price?

Discussion in 'Starting a Lawn Care Business' started by Gsxr750jl, Dec 3, 2012.

  1. H & M Yard Improvements

    H & M Yard Improvements LawnSite Member
    Posts: 214

    Ill bid an additional $10-$20 bucks higher so that if they try to talk me down, it won't hurt me. Has only happened to me a couple of times. I too try to sell the responsible and reliability. If it doesn't need a cut, I will skip it and catch it next week. I don't "Do it anyway". They tend to appreciate it. It has even led me to more clients through word of mouth. One weekly customer I had at the beginning of this season led me to 4 new customers. Word of mouth is the best advertisement there is! And it's free lol!
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  2. weeze

    weeze LawnSite Fanatic
    Posts: 8,047

    i've lowered it 5-10 dollars before to get the job. the next year the guy paid me my original quote so it can work out. i also told another larger yard it would be 100-125 dollars. of course they want the 100 dollar bid so i said ok we'll go with that for the first cut and see how it goes. i ended up finishing out this season doing it for 100. maybe cut it 4 times this year as they called me late in the season. anyways he says he will pay me 125 a cut from now on. i guess if they see you do a good job they don't mind to pay you a bit more.

    every job varies. sometimes you give a quote and they are like ok that's fine. other times they think it's kindof high and they may say well i got it cut for this much last year. i may come down a bit but i'll still price it higher than the guy that did it last year. that happened to me once. i said 50 and the guy said last year this other guy did it for 35. i went and looked around and said ok i might can do it for 45 and then he said ok that's better. still he only had me cut it for one season. he got his mower fixed and did it himself this year.

    everyone wants it cheap as it can be but those that really try to haggle you usually don't make good customers anyways. the best customers just say ok that's fine with me and you do the job and never have any problems.

    you just gotta kind of find your price range. some are gonna be lower than you and others will be higher. don't try to compete with price with lowballers. don't bid it at 50 and then come down to 35. that's too much of a drop. just let the lowballers have that type of customer.
     
    Last edited: Dec 19, 2012
  3. Darryl G

    Darryl G LawnSite Fanatic
    Posts: 8,033

    I think that's exactly the wrong thing to do. For one, if you hadn't bid higher to begin with they wouldn't need to talk you down. Second, you're setting a precedent that your prices are negotiable...you're letting the customer manipulate you. From that point on ALL of your prices will be considered negotiable.

    I have a number of service providers for both my home and my business and not one of them have negotiable pricing. Do you try to talk your auto mechanic down on their hourly rate, your cable and phone providers, your trash service, furnace repair man. They have SET prices and policies.

    If you want to offer them a discount of a set percentage for a fixed period of time as a promotion or something that's one thing, but to basically get into a bidding war with yourself is not wise in my opinion....it sets the stage for a customer that constantly tries to control you rather than accepting things the way they are.
     
  4. Will P.C.

    Will P.C. LawnSite Senior Member
    Posts: 965

    I love negotiating, but I can't imagine telling my fert guy "I only have 30 bucks" when i have been quoted 40.

    People that are willing to haggle you over 30-100 bucks are pinching too many pennies. Basically the next company that knocks on there door and offers a cheaper than you will get the job. No long term stability with people this tight.

    Obviously, there are certain instances where it might be more profitable if you do cave and drop your price, but not often
     
  5. Tunica

    Tunica LawnSite Member
    Posts: 124

    Know your business, Know your customers and know The price.
     
  6. Darryl G

    Darryl G LawnSite Fanatic
    Posts: 8,033

    Here are a couple of links relating to sales & pricing.

    http://www.icms.net/news-16.htm

    http://www.negotiationbootcamp.com/NegotiationArticles/TipsForPriceNegotiation.html

    Copy & paste from a part of the first link:

    I'll give you the order if you’ll reduce the price by 10%." If a customer gave you this ultimatum, how would you or your sales force respond? What is the correct response?
    a. Okay, but this time only.
    b. How about 5%?
    c. I’ll be glad to lower the price. Just tell me what you don’t want us to provide you.

    The correct answer is "c" according to sales trainer and author Tom Hopkins. He says,
    "If you agree to lower your price by 10% without reducing your product content or service level, the customer will not trust you." If you agree to reduce your price, three
    things typically happen:

    1. Your profit drops.
    2. The customer kicks themselves for not asking for an even lower price.
    3. Both you and the customer become frustrated.​
     

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