Low Balling Jobs. Why now is exactly the time to NOT do it.

Discussion in 'General Industry Discussions' started by apsnova, Feb 23, 2011.

  1. SouthernRoots_Lawn&Garden

    SouthernRoots_Lawn&Garden LawnSite Member
    Posts: 92

    my theory is that once prices hit an insane low that these fly by night companies will no longer look at mowing as a quick buck and then the few companies that hold on through the tough times will then have the market cornered in a way and be able to charge what theyre worth.

    As for me my short term solution to a long term problem was sod because joe blow and little timmy might have their push mowers but ill be damned if they got a diesel and a flat bed to haul sod and know how to bid it. im only 20 years old but i found my little area of the market and i started to thrive but i see companies everyday that have been around for 10 15 and 20 years closing down. So i guess if you have the experience in a field like lighting or irrigation then focus on that and stop trying to compete with an entry level field go do something that not everybody can do after all thats why doctors get paid more than burger flippers
     
  2. kilgoja

    kilgoja LawnSite Senior Member
    Posts: 944

    that's the thing...those $25 people never last...so the customer is forced to continually find a new lawn care person...customers don't like to do that...in my experience they like to stick with one person they trust to do a good job week after week year after year...even if it does cost a little more...noone wants to spend their summer finding 10 different kids to come cut their lawn since some fade out or stop showing up when they get tired of doing it..plus most of them don't do as good of a job...it's better to have 20 customers at $50 a yard rather than 40 customers at $25 a yard...i guess some people just don't understand that
     
  3. greendoctor

    greendoctor LawnSite Fanatic
    Posts: 8,941

    Well said. I posted in the other forum about the do it all jackholes that are cheap. I do not advertise myself to those clients. However, they find me when they come to their senses. I also do not want the huge commercial contracts where they are not in their right mind concerning value of work. I would rather have what I have now paying me what I am worth rather than having to do much more for less money.
     
  4. ACA L&L

    ACA L&L LawnSite Bronze Member
    Posts: 1,108

    Good example of industry lowballing, by giants in there indusry is Dominoes and Pizza hut. They are huge, they sell alot of pizzas, and are competing in the industry right now. first it was $12 you call it, then $10, then $5 pizzas when you buy 2 or more......they didnt sell a lesser quality pizza then they were before, they just made the pizzas smaller, less meat whatever. Deliver the same quality service you have before, but cut where ya can, trim the fat so to speak, you cant give it away and make money, but you can keep working and ride this out. Downsize, eliminate lawns/employees/etc that are clearly not good for you, market in an area you are already heavy in.....lots of ways to ride it out.......
     
  5. GSPHUNTER

    GSPHUNTER LawnSite Senior Member
    Posts: 306

    I got a price sheet on my door when I got home the other day $25/week on mowing. Does it piss you off a little? Sure. Is it worth ranting every day about? No. I'll guarantee he left the same quote on my neighbors door who gets charged $35/week. They aren't going to cancel service with me though.

    People are willing to pay for steak, like someone already mentioned. In this industry though steak isn't laying perfect straight stripes (everyone can do this with very minimal training), it is professionalism. Letter your truck, have a web page, have polo's with your logo for bids, uniformed employees, professional proposals, licenses for services, insurance for services you provide (truly fully insured, not just the ones you pick), get certified through relevant trade or professional associations, and spend less time on here looking at threads like this or pictures of a new push mower and more time actually learning something you can impress your customers with.
     
  6. kilgoja

    kilgoja LawnSite Senior Member
    Posts: 944

    um..this thread is about NOT lowballing...you guys are getting off subject a bit...and cutting corners?...read the earlier posts...already running lean...don't have any employees and only one mower, one trimmer, one pushmower, and one blower...can't cut anymore than that lol....i'm not having trouble...i'm not losing customers....the point of the original poster of this thread is to tell people NOT to lower their prices to try to compete in this hard time of the economy...because it will destroy the business...everyone will expect to get their yard cut for $25 instead of the $40-$60 they are now paying on average
     

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