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Lowballing - the new marketing technique?

Discussion in 'Lawn Mowing' started by Jason Pallas, Mar 20, 2003.

  1. Jason Pallas

    Jason Pallas LawnSite Bronze Member
    Posts: 1,325

    Here's a good one - I just ran into an old (ex) employee of mine in the part store. He's now working for a competitor (no big deal). In the course of things, he tells me that his new boss is adding another crew (4) this year because they're just swamped with new business. Sort of surprised that they've got this much new business so early in the year (it just stopped snowing here last week), I asked him how they managed to pick up so many new clients. He answered "lowballin",
    When these freakin idiots learn! It's so frustrating! By depreciating the price of their work, they continue to muddy the waters for everyone - so that everyone has to continue to cut their asses off at reduced prices just to make a living.
    If you're only marketing technique is to lowball, you don't belong in business!
  2. Likestomow

    Likestomow LawnSite Senior Member
    Posts: 997

    If someone wants to work for less money than you, why get upset?
  3. Why would Jason answer a STUPID question?
  4. brucec32

    brucec32 LawnSite Platinum Member
    Posts: 4,403

    Because, unfortunately, the market price is set by others, not ourselves. If someone will mow a lawn for less, all other things being the same, that is now the going price. Until the lowballer goes out of business or raises prices, it will have an effect.
  5. Jarrells74

    Jarrells74 LawnSite Member
    Posts: 31

    Exactly Bruce..

    LAWNS AND MOWER LawnSite Bronze Member
    Posts: 1,129

    Why is Wal-Mart so successful????
  7. Got Grass?

    Got Grass? LawnSite Senior Member
    Posts: 363

    Some products they put on sale & take a loss because they know you will buy something else marked up.

    Their profit per product may not be as much but they make it up in volume.
    Unfortunately they are a retail store & sell products not a service. most people who shop there could care less if the cashier is rude as heck as long as the customer got a great deal.

    With service based business people care about who is working on their stuff & our bigged expense is our time, not the material we sell or the cost to provide the service.

    Service vs. Product completely different marketplace
  8. JVS

    JVS LawnSite Member
    Posts: 132

    Unfortunately we live in a "Wal-Mart Society" where the consumer wants excellent service at the lowest price.

    We do NOT or EVER match prices. Our service adss value that dramatically increases property values!
  9. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    yeah but we are forgetting that there IS a difference between lowballin' and just a lower price. I lost a job for 6600 sq ft of sod the other day because some ignorant @#%$& came in at .64 a square foot. That price included 25 yds of topsoil, hand grading, laying the sod, and rolling it.

    Wal-mart has decently priced items. They are lower priced, BUT... they are not the dollar store.
  10. AltaLawnCare

    AltaLawnCare LawnSite Senior Member
    Posts: 962

    Excellent answer. More service business need to understand this, and not compare apples to oranges.

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