Does lowballing = less net profit?

Discussion in 'Lawn Mowing' started by privatelawn, Jul 11, 2007.

  1. privatelawn

    privatelawn LawnSite Senior Member
    Posts: 301

    I see flyers all the time with prices alot less then mine but still mine could go up just a tad bit, if I raised my price to what the highest guys are charging would be about $10 more per month = $3 more per cut but Id also have to up the quality a bit more.

    Suppose your prices are higher then mine

    You = high quality service, youd charge my $50 customer $60 but spend more time to do a quality job, outcome= same profit

    Does everyone really need to get quality service?

    Say you have a $1000 junky car and a $100k benz, do you take both cars to the $50 car wash ? what im saying is not everyone thinks there lawn is worth $50 a week so they would settle for a non quality job.

    What about when you buy medicine, top brand or generic to save a few bucks?
     
  2. delphied

    delphied LawnSite Silver Member
    Posts: 2,067

    I say that you should do what you want to do. This business is like all other businesses,every man for himself.
     
  3. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    Privatelawn, you are correct.
    Some people just want their grass cut by a dependable trustworthy company. So if you can sell this service to enough customers in the neighborhoods where you want to work, then you are ahead of the game.
    That's what we do, we sell a dependable good service. No ruts, no tearing up the turf, grass never blown in flower beds, etc... but when we can cut a corner here and there, ex: skipping some trimming when the heat sets in, we do it. We market to a lot of older clients, with older brick homes, and that's what they want. A dependable service, and that's how we get recommended. We are in like Flynn because dependability is our game.
     
  4. bigbone

    bigbone LawnSite Member
    Posts: 101

    Exactly, I know which customers want a perfect cut and which ones don't really give a rats @$$. My philosophy is that if they don't care about their lawn then neither do I.
     
  5. privatelawn

    privatelawn LawnSite Senior Member
    Posts: 301

    I do my best to make it look as good as possible but within a time frame were I make atleast $60 an hour gross, I rarely ever get complaints, probably the biggest complaint is from not edging beds every week which is probably the only thing that makes my lawn look a bit less quality then the quality guys.
     
  6. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Posts: 2,988

    Well this is where the estimating comes in, if you're looking for a target hourly rate, you need to judge the property, and get a feel for the way the customer wants the property to look.

    If it's obvious that they are wanting it to look first class, and it will take you 10 minutes longer to do it, then the estimate price should reflect that.
     
  7. privatelawn

    privatelawn LawnSite Senior Member
    Posts: 301

    True, only thing is I do all estimates over the phone, I use the county website to find out the square feet etc... they also have a picture of every property on the countys website so that helps me determine price

     
  8. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Posts: 2,988

    I have been doing more over the phone, if the customer knows the lot size, I give them a price and tell them that's what it is unless there are some nasty surprises when I get there the first time. I'll usually ask a series of questions to determine what kind of work they're looking for and the charachteristics of the property.

    I still think a BETTER way to increase your net without cutting time at a property is to do anything you can to tighten your route and reduce windshield time. But I do realize this isn't always possible.
     
  9. befnme

    befnme LawnSite Bronze Member
    Posts: 1,413

    i am not so sure i agreewith that theory. if a company comes in to a prop with 3 mowers and a 5 man crew and gets 40 bucks for a 15 min job. then some one comes up with only one mower and says " this is gonna take me an hour" then does he charge more ecause he has to do 5 times the work himself and it's gonna take 4 times longer ?
     
  10. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220



    this is No car wash
     

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