How to handle price rejection?

Discussion in 'Business Operations' started by robert payer, Dec 5, 2004.

  1. robert payer

    robert payer LawnSite Senior Member
    Posts: 282

    This question is to the professionals who know their true cost of doing business. Sometimes with mowing, a professional company might charge almost double what a new guy who is just starting mowing lawns. As a professional who knows the cost of doing business, you price the job at $45.00. The customer tell you that they are paying $30.00. They do not understand the difference. How do you handle this situation.

    I have some ways I manage it, but I am looking for a better way.

    Ideas?
     
  2. AL Inc

    AL Inc LawnSite Bronze Member
    Posts: 1,218

    I always laugh to myself when I'm giving an estimate, and the person says "Why so much, my last guy was only charging XX amount?" I'll say "where is he now?" They will say, "Oh, we can't find him" or "He quit" or the classic "He went out of business". They don't see the connection!
    Giving estimates and rejection are part of selling. It isn't a personal attack on us if a person doesn't want to hire us. It's business. Try to stress your professionalism, and let your work speak for itself.
    I can honestly say I am at a nice point now, I really am not looking for any more maintenance customers. So on the estimates I do give, there really is no pressure to get the work. If I don't get the job, really doesn't matter, I can still eat.
     
  3. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    I always say "when he goes out of business give me a call"
     
  4. Green-Pro

    Green-Pro LawnSite Bronze Member
    Posts: 1,420

    I can't remember which member on lawnsite said this but I will never forget this line " I'm sorry to hear you cannot afford our service "

    I apologize to the member that said this I really don't remember your name and to be honest it's Sunday afternoon, been hunting, I'm ready for a nap, therefore am to lazy to do search :) . So whoever said this I just want to say thanks, this is a classic that kind of puts the shoe on the other foot as far as dealing with the customer on pricing goes, and does so in a slightly inoffensive manner, this is one I will be using especially for rude client bids.

    G-P
     
  5. J&R

    J&R LawnSite Senior Member
    Posts: 835

    I ask did last LCO quit you or did he have Lib and worker Comp. That maybe the reason he was not charging you the going rate for the size of your yard.
     
  6. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,480

    shockingly, that quote was from a bobby gedd thread. as for using that line, in no way is it not offensive. i can see where you would possibly use it with a rude client, but for anyone else, it is extremely demeaning as you have no idea what their financial situation is. house rich, cash poor is sadly a way of american life now. why turn-off someone who is a potential customer down the road?

    personally, i never trash the competition as it only makes one look immaturely bitter. a simple "if things don't work out to your expectations or satisfaction, by all means please gives us a call." and leave a card or brochure. if you've properly presented yourself and your pitch, you should leave an impression that will have them think of you.
     
  7. AllStarLawnCare

    AllStarLawnCare LawnSite Member
    Posts: 23

    I simply tell people you get what you pay for. And then maybe tell them what they're paying for: the right treatments at the right times by professionals.

    "Sir, you can pay $30 to have someone mow your lawn at the same height as every other lawn regardless of turf-type and drag everyone else's fungus and disease across it. You can pay them to put down a generic "weed & feed" at a time that will send your lawn into overdrive when it should be slowing down. Or you can hire someone who will actually care for your lawn."
     
  8. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    I've always liked this

    The Sour Taste of Poor Quality Last Much Longer

    Than the Sweetness of a Cheap Price !
     
  9. arborist-28

    arborist-28 LawnSite Member
    Posts: 246

    Hahaha I like that "I'm sorry you can't afford our services " that is good ...lol
     
  10. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    At first, many are scared to lose an estimate....just don't be. If you have that fear and never get over it, you will always want to lowball. I have talked to many guys that bid way too low and the anwers were always the same, "I was afraid I was going to lose the account". I use to give them a big explanation why I was more than the other guy, but I really don't find a reason why I need to do this anymore. They can take it or leave it. If I do, I usually tell them that they were getting a great price and they should find that guy again. I might throw in the fact that I am using a $10,000 mower....after that they usually don't argue much.
     

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