I've heard of lowballing but...

Discussion in 'Lawn Mowing' started by paponte, Apr 18, 2005.

  1. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    Simply unbelievable. Did 4 estimates today in a culdersac. ALL the homeowners said we were HIGHLY recommended, and that we actually plowed and maintained 2 places where they were employed at. Gave them all estimates of $40 -$50 and told them those were lower prices since we maintained pretty much the whole block 1 block over. All of them said they had a guy doing them for $25-$28!!!!! Half price?!?! Then they all admit that the guy SUCKS!! But yet, I am WAY over priced and I was giving them a deal!

    I just don't get some people. :realmad:
     
  2. QualityLawnCare4u

    QualityLawnCare4u LawnSite Gold Member
    Posts: 3,758

    paponte, its just like my area, people want first class, prestige lawn care but want 1970 prices for it. :angry:
     
  3. Jpocket

    Jpocket LawnSite Silver Member
    Posts: 2,278

    You Just gotta get in and out fast. You can probaly do a better job than the other guy even if your guys are haulin ass.
     
  4. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    Your looking at an hour and maybe a little more with 3-4 guys. There is no way in hell I am having 3-4 guys working and only making $100 for over an hour. Ain't happening. Not with gas and insurance like they are.
     
  5. Turfdude

    Turfdude LawnSite Bronze Member
    Posts: 1,900

    Are U nutz??? :rolleyes: Paul runs a first class operation. He probably would be losing money at those rates. The people admit his work is better. Its only a matter of time until the existing LCO either goes under or raises his rates toby $10, w/ no better work, then Paul gets the job as his prices are a "little" higher, but the quality & reliabilty are worth the difference.

    I really hate it when people say lower your price, or you shouldn't have a minimum price, or give a discount if you get more than 2 together. Sooner or later they'll learn. I only wish this site, or others like it existed in the mid-late 80's when I first started my biz. Too many of us seasoned vets give wayyyyyyyyyy too much free advice.

    BTW - look @ Pauls signature line & see what I'm talkin bout!!
     
  6. Mo Green

    Mo Green LawnSite Bronze Member
    Posts: 1,487

    I hate to say it, but this is all due to one simple principle: people think that cutting grass is an easy, mindless, and inexpensive endeavor. When in fact it is none of the above. This goes back to (and I hate to bring up this overly discussed subject) scrubs. When you have these guys out there undercutting everyone to make a quick buck, this becomes the result.
     
  7. Likestomow

    Likestomow LawnSite Senior Member
    Posts: 997

    An hours work for 3 people for $160-$200? That seems a bit high to me. My people get $12/hr, maybe yours get $25.

    $112 - $36 = $76 gross.

    How much is your overhead per hour?
     
  8. 2 man crew

    2 man crew LawnSite Senior Member
    Posts: 403

     
  9. lawn_pro

    lawn_pro LawnSite Senior Member
    Posts: 284

    Companies that don't charge enough never last, you see their trucks all over the place for a few years and all of the sudden one year......they are gone-bankrupt or whatever. Happened to three companies around here this year, our phone has been ringing off the hook, it's nice to get the prices back up to where they should be.
     
  10. Katwalk

    Katwalk LawnSite Member
    Posts: 92

    Many of the new start ups are people, young or old or middle aged, that probably had jobs that paid $8-$15 bucks an hour and they think that by billing themselves out at $25 bucks that they are rolling in the dough. No big deal. They just make us look better in the long run.
     

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