Low Ballers got to!!!

Discussion in 'Lawn Mowing' started by nobagger, Mar 26, 2005.

  1. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    Man its the same thing everywhere, low ballers are taking over. Or maybe we should all do a price check. I really feel bad for the companies that are so big they need to charge $60.00/hr to break even. Thats why I'm staying a smaller co. with very low overhead, so I don't need to charge $60.00/hr just to try and pay bills. I have just a couple of employees (friends) that help me out when I need it (bigger jobs). For the most part there is just 2 of us Mon.-Sat. doing all of the mowing. Just a thought, maybe try breaking up into smaller companies dedicate one for just residential and one for commercial, I don't know just a thought. Just thinking you can get a lot of work done with 2 or 3 people and a smaller w/b and just basic tools required for residential mowing. I also think it's ridiculous charging a customer $50 and $60.00 to mow a 1/2 acre lot, and not that it's done all the time but I have seen some posts that suggest this. Things are different now-a-days the economy still sucks, people are going through layoffs left and right. A lot of people just can't afford the $60.00/hr cut, they may want to but just can't so they go with the "low baller" because they still want it done.
     
  2. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    level " B" service. just like REAL BUSINESSES DO, offer a lesser quality product, at a cheaper price. for example, if a mercedes isn't in my budget, i can always buy a honda. if a honda isn't in my budget, i can buy a hundia (sp) you get my drift
     
  3. Ren

    Ren LawnSite Member
    Posts: 11

    It's mot just the big guys that need the $60 per hour. I run solo and I couldn't survive for less. Somehow I get the customer to go beyond price. I finally got to a point where I can walk away if someone wants me to compete for $45.00 an hour. This goes back to an old thread, Bobbygedd, about the cost of living in the Northeast. Mortgage, car payments, taxes, college, health insurance, just can't do it for $45 an hour. You know the guy who says, look it over and leave your price in the mailbox. The way that I think I get around the low baller is that I will only go to do my estimate when the owner is home. Then we talk about mowing, aeration, dethatching, fertilizing, mulching etc and then start working pn who you are. Mulching is the only thing that ends up to be about $50 an hour to spread it. I get $50 a yard to spread it and about the best I can do is one yard per hour. They're all residential and the best one is probably my first one from four years ago. It's a quarter acre, takes me 15 minutes and it's $30. I guess that one is at $120 an hour. Just can't knock the small ones. Everything is $60 an hour, from a haircut, oil change including landscaping.
     
  4. freddyc

    freddyc LawnSite Senior Member
    Posts: 578

    have you guys getting $60/hr ever figured out what that would compare to in a corporate or factory position?

    Taking out most of your expenses, what would be the transfer cost to an 8 to 5 job??

    Just curious.
     
  5. MOW ED

    MOW ED LawnSite Fanatic
    Posts: 5,028

    There is no bargaining in the restaurant for a lower priced steak or that pitcher of beer is gonna cost 8 bucks, take or drink a dollar glass of coke.
    The plumber comes over and the minute he steps out of the truck it is 80.00 for the first hour.
    I go to my dealer and I pay 9.00 for a spring tine, 50 bucks for blades and 55 bucks to fill the truck with gas, I get no lower prices from anyone. Ya you can charge low prices if you are doing this for beer money but not me man. I know my prices and I charge accordingly, it is a take it or leave it proposition these days. I am not doing this as a hobby.
     
  6. nitrotim

    nitrotim LawnSite Senior Member
    from nj
    Posts: 525


    Hyundai is # one in customer satifaction according to J.D.POWERS AND ASSOC.
     
  7. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    And people who pay less and expect less for lawn care are probably happy too. You get what you pay for.
     
  8. grassdoctor

    grassdoctor LawnSite Member
    Posts: 36

    Thats a lie ... some of the bigger companies low ball just to keep their workers busy. I know that for a fact. You cannot compete against some of those companies unless the go broke. There was a lawn I bid on this year 95000 square ft I bid it out at 225 a mow because half of it you could not take any type of mower on what so ever. The hills and burms were so steep you would just slide right down them. Parts of it were places where you acually had to lift a mower on the grass in order to get on the grass. ******* green acres comes in and bids it at 95 a mow. They can have it I hope they go broke.
     
  9. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    Do you understand matching ss and medicare tax? or that workmans comp is adjusted to payroll? I doubt they are working just to keep their guys working.
     
  10. Mo Green

    Mo Green LawnSite Bronze Member
    Posts: 1,487

    This is true, somewhat true in regards to restaurants. But, if you can't afford steak at Outback, you go to McDonalds for a burger instead. Same thoughts some customers have in regards to their lawn. As far as the plumber goes, most people can't fix their own toilet, so there is a need for this service and not a desire. For most homeowners, having their lawn done by a professional is a desire, and not a need, as most people know how to cut their own grass, they just simply choose not to.
     

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