Is your company more expensive than the competition

Discussion in 'Landscape Architecture and Design' started by JimLewis, Mar 23, 2007.

  1. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,835

    If a customer in your area were to get 10 bids on a design/build or landscape construction project; 9 from a random selection of your competitors in your area, and 1 one from your company - and set them in order from 1 to 10..... 10 being the most expensive bid they received, and 1 being the cheapest bid they received... How many of you would expect your company to be a 8, 9 or 10?
     
  2. ooo

    ooo LawnSite Member
    Posts: 235

    I'd say about 5 or 6. There are customers who tell me I am this much lower than this one and this much higher than this one. They than proceed to try and get me to lower my prices and say they will call the others to get lower, and that they have more people coming. I tell them the price is fixed. There is no way I am going to get in a bid war. They are just looking for the lowest price and must be willing to sacrifice quality over a few dollars.
     
  3. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Posts: 5,407

    I would expect to be one of the highest bidder. Even though I am the highest bidder, I have pretty good success at landing the jobs. I think my proposals are much more detailed than the competition.

    I also think that the more reputable your company name becomes, the higher up that bidder scale you will be. Simply supply and demand.

    I went and looked at a job for a lady the other day and spent an hour going over some landscaping ideas w/ her... then when I was leaving she said mentioned something about good luck on the lowest bid!! I just thought to myself I just wasted an hour of my life.
     
  4. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    lawnworks.

    we are the same way, we will be one of the higher. but we still are booked.
     
  5. cgland

    cgland LawnSite Bronze Member
    Posts: 1,929

    7 or 8 for us. There are a couple of companies around us that are outrageously priced, plus their work isn't that great.

    Chris
     
  6. AGLA

    AGLA LawnSite Bronze Member
    Posts: 1,740

    Do you think that anyone is going to post saying they are in the lower end of pricing?

    Does your competition tell you what they charge? Then how do you know?

    I would also not consider a random sampling as your competition unless they are truly competitive with you. By that I mean that you are more or less equally likely to win a job over them as to lose a job to them. If your prospect is looking for a lowballer and you are a 7,8,9 then you are not in the race at all. If you are a company built to compete for work based on price (it is a viable business model if the management is good) and someone wants all the bells and whistles in their maintenance, you are not competitive with a slower detailed oriented company.

    Now who is going to claim 1,2, or 3 on this thread. Step up because 30% have to be.
     
  7. PORTER 05

    PORTER 05 LawnSite Senior Member
    Posts: 642

    i am on the low side of pricing, proubly in the 4-6 range its tough cause theres tons of low-ballers here, (not really there fault ), but there are, andthere are some pritty big companies here too, i dont really know wat the low ballers charge bit i do know wat the larger companys charge and where maybe $10-$15 dollers per HR per man off there price. i would place us right in the middle, and we are booked about 3-4 weeks from april to jan.
     
  8. PaperCutter

    PaperCutter LawnSite Bronze Member
    Posts: 1,938

    30%? I doubt it... my guess is that if you were to do a statistical analysis and graph of where people are in the industry, you'd see a normal distribution- that is, the majority would fall in the 4-7 range, with 1-4 and 8-10 being the outliers. I'd go a step further and think that the distribution is skewed a little higher, with the biggest groups being 5-7.5 or so. That's because you won't have a lot of 8s and even fewer 9s, maybe 1 or 2 10s- because the market isn't there in most places to support many of these. There's probably a huge amount of fluctuation in the 3s and below, and the 4s and 5s will be pretty variable as well- people may move up through the 4s and 5s as they get more comfortable selling, and maybe settle back into a 5 if they're really efficient. I would think (based on what I've seen doing this in New England, Ohio, Cali, AZ, and now Virginia) that most of the operators are in that 6-7 range.

    To answer your question, Jim, I'm personally a 6 pushing to become an 8.

    Dave
     
  9. AbsoluteH&L

    AbsoluteH&L LawnSite Member
    Posts: 155

    I would put myself as a 5. The thing is that lowballing guys are'nt competion for the bigger company's that can charge top $. I'm not a business with a fleet of trucks and 5 crews, or I'm not side show BOB pulling a jet ski trailer with a piece of plywood pulled by a Kcar. Middle of the road pricing seems to work best for me.
     
  10. Ric3077

    Ric3077 LawnSite Bronze Member
    Posts: 1,113

    We are around 9, I get flyers all the time for aeartion for 15ksqft $38!!!!! My price is $225 for that. I got a mowing flyer $25! My lawn would be $55.
     

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