How would you respond to this question?

Discussion in 'Lawn Mowing' started by Precision Lawns, Mar 17, 2006.

  1. Precision Lawns

    Precision Lawns LawnSite Senior Member
    Posts: 283

    I met a lady recently in my other job as a cable tech. She had a TINY yard. I mentioned that I had a lawn care service, and she asked how much for her lawn. I gave her our minimum, $28. She wanted to haggle, I said MAYBE $25, but we'd have to think about it. Gave her a business card and left. I should mention her neighborhood is in our area, but it's not a neighborhood we mow in yet.

    She calls today. I didn't talk to her this time, partner's wife handles the phone calls. Lady told her that I had given her a $25 price quote, but she had talked with her neighbor (3 doors down) and they had a proposition for us. Apparently they had a "company" (sounds like a kid to me) doing their lawns for $15 last year. She wanted to know if we would be willing to lower the price to $20 if they were to both sign up. Partner's wife told her she wasn't in charge of those decisions and we'd get back to her.

    Immediate reaction is no way - $8 off each yard each time is too much, even though the lawns are small. We have a minimum for a reason, and two yards 3 doors apart in a neighborhood where we don't mow anyone else is not enough incentive to give them a "group rate," not that we've ever given a group rate before. And we'd still have to drive to the neighborhood. Plus, then what happens if they start telling their friends they talked us down $8? Now everyone wants a discount.

    However, two new customers for $25 each in a postage-stamp neighborhood is appealing. We'd still make a profit off of them ($25 was our minimum last year, and these lawns are smaller than any we mow now) even at that slight discount, and wouldn't be afraid if they told their neighbors that price, since the more lawns we can get for $25 in a neighborhood of tiny lawns, the more money we make.

    SO, how would you reject their $20 proposal, but still try to get them at the discounted rate of $25? Or would you accept the $20 proposal, since their two lawns combined are probably still smaller than one of our typical $40 lawns (although since they're not right next to each other, it's not exactly comparing apples to apples)?
  2. sheshovel

    sheshovel LawnSite Fanatic
    Posts: 5,112

    No is how I would respond
  3. Rev. Crabgrass

    Rev. Crabgrass LawnSite Member
    Posts: 120

    "Thank you for your interest but NO". That is losing $16 every time you go there. I am still amazed that people think all the money you charge is profit.

  4. Precision Lawns

    Precision Lawns LawnSite Senior Member
    Posts: 283

    I was more wondering how to say no to $20 but still try to sign them up at $25?
  5. Greenboy25

    Greenboy25 LawnSite Member
    Posts: 19

    You could do a few things. Accept the offer if you feel you will make money and if your schedule becomes full, dump them. Ask if the 'in-between' house will sign up, you will do it. Accept their offer if they will sign on to your 'full-price' fertilization program. Sell the heck out of extras to make up the difference. Or simply walk away. I know you dont want to be a lowballer, however, mass production has its benefits.
  6. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    John this is part of my increase in price letter ....but you may get some ideas of your wording

    Monthly billing reflects the labor, equipment, maintenance, fuel, office & billing expenses, accounting, insurance, state & federal tax and many other smaller cost which all contribute to the total cost of monthly service.

    Fantasy Lawns carry's $1,000,000.00 in Liability Insurance & Commercial Vehicle coverage as well and State Workman's compensation insurance. We are a legal operation, licensee to operate in Brevard County; we pay Federal Payroll & Income tax, Local & State taxes.

    As a Legal License Professional, we are unable to provide prices comparable to operations without such legal & liability protection, nor do we wish too. The personal liability these operations place on the customer is not worth the risk of injury on one’s property or damage that may occur.

    We hope that the overall reliability of our service & your own overall satisfaction for the services we have provided fore you, will allow us to continue service at the new monthly price. If this is not acceptable, we apologize for any inconvenience this may cause, if you do not elect to continue our service.
  7. riches139

    riches139 LawnSite Senior Member
    Posts: 369

    "We have a minimum for a reason"
    Nuff said! :hammerhead:
  8. Littleriver1

    Littleriver1 LawnSite Senior Member
    Posts: 811

    Guilt feeling? I think! Or, you have been mesmerized by this woman. The devil made me do it. Walk away from this one, on a dead run.

    TURFLORD LawnSite Senior Member
    Posts: 834

    No thanks. It costs so much just to show up.
  10. Precision Lawns

    Precision Lawns LawnSite Senior Member
    Posts: 283

    Fantasy, lots of good ideas in there, hopefully they'll help us sell the slightly higher (but still lower than usual) price...but who's John;)

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