LOW rate.

Discussion in 'Lawn Mowing' started by fblandscape, Aug 11, 2003.

  1. fblandscape

    fblandscape Banned
    Posts: 776

    I had gone with a friend when he did an estimate the other day. It was a small job, 2 guys, 4 - 5 hrs. He priced it at $175 :eek: That is $17.50 per man hour! I was just thinking about how much he charges for cutting grass... this week they did 115 lawns which totalled up to probably around $5000 knowing him. I also know that it took 4 guys, 50 hrs to do those lawns. That right there is about $25 per man hour! After we went to give the estimate, we talked about 13 lawns which he does in a single day. It takes 4 guys 10 hrs to do the 13. He doesn't even get $700 for them combined. Guy absolutely refuses to get a rider unless he gets a "huge account." Probably this is why he lives in a run down shack which isn't even 1000 sq ft and has a truck which barely runs. It's also probably why his partner lives in a 2 room shack!! How can I go about beating some sense into my friend?
     
  2. Off hand, I’d try to get him to see the future. Short-term, if he were to suffer a catastrophic loss such as fire, theft, storm, etc. is he saving (not just “making”) enough money to recover? Is he saving enough to build a fund to replace worn out equipment?

    Long-term, will he be able to retire? Or will he be doing this until he’s so old he can’t see, hear, or go to bathroom by himself anymore?

    I fight this fight with people on this website all the time and with some friends here locally. Some haven’t raised their prices in 12 years. At the drop of the hat, they will do all kinds of “favors” for a customer, and never even dream of asking for money, much less make a profit for doing the “little-extras.”

    Unfortunately, they’ve convinced themselves low-balling is the way. They’ve conditioned their customers into holding out on a bid for a few days until the LCO blinks and offers a revised, low-ball bid. Their body language, countenance, voice inflections, as well as the words they use all scream, “PLEASE take advantage of me. I am so desperate. I will work on any terms you (the customer) would like. PLEEEEASE!!!”
     

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