I started my lawn service earlier this year and just today signed on my 50th customer. I feel I am growing the business fairly well using social media, word of mouth, door to door (ugh!), newspaper advertisements, sign-on specials, etc. I also have been sending out satisfaction questionaire's with each monthly invoice to make sure I am meeting a standard of excellence...but here's my problem: I am starting to notice signs around town for $15 lawn cuts...which is insane...and a few of my customers have started asking me to match it. I've developed a pat answer about quality of cut, insurance, sustainability, reliability, blah blah blah but I'd like to draw on the wisdom of the group...how do you counter a low-baller offering a $15 cut??
What is the percentage of customers that sign up? In other words, Do half of the people you try to sell your services to agree? Does everyone agree to let you cut their grass?
Not even close. I probably hear 100 "no's" before I hear a yes...Social Media has been the best so far...The door to door flyers yield almost nothing...2%...but I keep doing it...Anyway, any advice on how to respond to the $15 cuts?
I go through the blah blah blah, like you do. I do get tired of people asking for deals.
If they try to push me to match a price, I laugh and say that they should go with the
other guy. I don't want to fight.
If they want the low price, they're probably a pita anyways.
Company costs for a job are what they are. We are in this for the long run and
to make money. PITA KMA!
I like to remind my clients that if it sounds to good to be true it usually is. Also let them know if a contractor is uninsured or under insured the liability goes to the property owner. Posted via Mobile Device
Good responses. Thank you! If push comes to shove I usually laugh and say, "you better call that guy....sounds like a good deal. However, when he doesn't show up after the first mow, feel free to give me a call." I try to put some humor into it while also making a solid point. The insurance bit is good. I will slide that in there as well.
THis will always be the case, 15 dollar lawns are the new 20 dollar lawns. Im still getting a lot of estimate calls this late in the season but I want to just say "If youre price shopping, good bye". Its hard to run all around town and give someone your best price and then have them say well... I have a couple more people to call.
I absolutely hear you...It's gotten to the point where I almost create an interview-type feel to the calls I get...I try to make it as if the caller has entered my office to ask me a question. I pump them for information about their lawn, their current or past lawn service companies (why they left, etc) to get a feel for them. By the end of it I say something to make it seem like a favor that I am coming out. Basically, I try to create a power differential from the start...I still get the price-shopping scenario though and, I agree, it is frustrating as hell.
THis will always be the case, 15 dollar lawns are the new 20 dollar lawns. Im still getting a lot of estimate calls this late in the season but I want to just say "If youre price shopping, good bye". Its hard to run all around town and give someone your best price and then have them say well... I have a couple more people to call.
A lady called me today and got upset when I told her that I don't cut on Saturday. She said but, I work mon-Fri. I said I do too. Saturday is family time. I then told her that if she didn't trust me to cut her yard when she wasn't there, that I didn't need to cut it anyway. She then said well I only need you when we can't cut it. I said that I couldn't do her yard and for her to call someone else.
A lady called me today and got upset when I told her that I don't cut on Saturday. She said but, I work mon-Fri. I said I do too. Saturday is family time. I then told her that if she didn't trust me to cut her yard when she wasn't there, that I didn't need to cut it anyway. She then said well I only need you when we can't cut it. I said that I couldn't do her yard and for her to call someone else.
TMlawncare~ That makes more sense to me...After I read the post I tried to calculate in my head the cost of travel, etc. and couldn't figure how $15 would ever work...the scenario you presented makes sense...
Well. I havn't seen it. But then again I havn't seen immigrant labor either, legal or illegal. Maybe we're just too poor here in southwest Ohio. I just saw on the news Dayton Ohio has 7,000 vacant houses they can't afford to mow. They're asking people to volunteer to clean them up. They say homeless people are breaking into the vacant houses.
Homeless people, vacant houses...looks like there ought to be some kind of solution to this, ain't no wonder we're poor.
Green Clover;
This business is all about being able to sell what you have to offer. Your intuition is good, your suspicions are true. You'll do fine. Probably better than some of us. Are you posting here just to brag? 50 accounts your first year! Way to go!
Every summer this goes on as kids out of school look to make a few bucks. It doesn't last long or reliability isn't there after a few weeks. All they are looking for is some beer money. Hang overs take over and soon they are done. One thing I did once was give the HO a list of things to ask the "Low baller" such as Identifying the grass in their yard. Any true LCO who can not do this along with identifying plant species in their foundation plantings. As I say to them. It's like would you trust your health to me or a Doctor? Let the customer look ask questions then of course if they want to go cheap you really have no choice. If they get the shaft from the low ballers and want to come back tag on a additional 10 bucks to the contract. Telling the HO the pre existing price was due to them being a old customer. Now with fuel and other costs these are new customer prices.
Haggerty~ The area of Florida in which I live is mainly elderly or retired people. It's a transient populous. The demographic may make solicitation somewhat easier...I don't know. I do know I work from sun up to sun down every day whether there is anything to mow or not...or I'm on the computer using social media to pump the message....Admittedly, the times I return home with nothing tangible to show for it keeps me humble...I imagine there are lucky times and bad times. ...Workin' my nuts off to stave off the bad.
Wayne~ what you posted is sound. No doubt that comes from experience. I will take your advice on the list of questions to ask the low-baller. That's good. Thanks.
I just saw on the news Dayton Ohio has 7,000 vacant houses they can't afford to mow. They're asking people to volunteer to clean them up. They say homeless people are breaking into the vacant houses.
Homeless people, vacant houses...looks like there ought to be some kind of solution to this, ain't no wonder we're poor.
If they have a problem like that here there are two ways that they handle it. The first involves a bulldozer and the second involves firefighter training in a real burning house. And they will do it.
$ 15 cuts are posted all around here as well, they only cut so Im told.. No cleanup no edging. In this area there are hundreds of start ups each year most fizzle out quiclky because they simply cannot sustain financially. Everyone believes they can insure license fuel and pay loans for trucks, equiptment maintenance etc. as well as divide profits amongst 2 or 3 people..simply not possible. Esp with gas / deisel prices. I most love our customers who cancel service in June to go with a college or HS kid who must return to school in August before the season even ends..only to ask us to come back when they can no longer maintain them..because "they really needed the money" Because you know we all go into business for ourselves because it is so much fun , we are all independently wealthy and what they hey lets go get nit picked for the hell of it. Here is one customers actual comment.." I was examining my lawn after you left and when I got down on my hands and knees to view the lawn at eye level for uniform cut I noticed that the blades seemed to chopped as opposed to cleanly cut..why do you suppose that is.. I would prefer you sharpen your blades before cutting my lawn..WTH are you kidding me..blades are sharpened every other day and decks cleaned daily mulching blades none the less on a commercial Scag..It would mow a tree down no problem and efficiently shred it in the process. This is in an HOA and is a 1/8 to 1/4 acre plot including the enormous 3 story house and landscape driveway etc. has a fenced in backyard with a 36" gate and the owner prefers a push mow in the back..they are locked in at a much lower rate due to being a older client 10 yrs..Even with bi annual increases they are under $35..With tax!
I advertise on my flyer: With lawns starting at just $20. meaning the minimum. i have 35 accounts. im solo, i only have one yard for that price. its a tiny trailer lot. i have 3 other accounts on that street. dont have to load up or unload more than the one time. and its about 6 minutes from my house. she was talking to my client and i handed her a flyer. i said i could cut it for 20. she said that her boyfriends brother does it for 20 and i probably would do a better job. (yes, much). so now i cut it. takes an additional 10 minutes tops, MAYBE. my most expensive is only 105/ weekly. im not the cheapest, but if i can get an extra job for 80/month and it takes me 40 minutes/month- ill take it!
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