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Marketing Strategy

Discussion in 'Business Operations' started by LAWNGODFATHER, Sep 1, 2001.

  1. Ok time has come to bid commercial accounts. You all ask for ways to do so. So here is one proven method.

    Here is a marketing strategy

    It’s called King of the Hill

    To do this you must know what your bottom line is and play it well. It also works on res. too.

    1: Pick an area you want to be in.
    2: Choose all the places you want to bid.
    3: Prepare a bid package ahead of time to save time sitting in truck.
    4: Go in the biz and ask for the person in charge of land maintenance.
    5: Ask them to walk property with you. If not you should know how to read boundaries.
    6: Bid on the mowing and the mowing only unless they ask for more. Then will have to be cheap on the extras too, but not to cheap just a couple of dollars less per an hour. Also give them a list of other services you offer.
    7:You must bid them fast and get them to them fast but don’t do it the same day you were there.
    8:Make sure you bid them right with some fluff in it, don’t sell your self to short, but you still have to be cheaper than the other guys.
    9:You will have to work 2 or 3 areas till it starts to pay off for you.
    10 Once you get them you will raise your prices 10% a year till you reach you price scale.
    11: You must do a high quality job.
    12:While servicing the properties you will need to develop a strong business relationship with the customer.
    14:Up sell up sell any thing you see needs to be taken care of sell it to them. Add other services you do too.

    If any others know this system please feel free to add on. I may have missed some things but you get the just of it. And if any of you have any question post them and we will try to answer them.

    LGF:blob1:
     
  2. John Allin

    John Allin LawnSite Bronze Member
    Posts: 1,489

    Too late...
    Brickman has that "system" in place already.
     
  3. John

    Whom says we can't profit from it too!

    LGF:blob1:
     
  4. That sounds like some of the companies here, but they reduce by 10% each year.
     
  5. Guido

    Guido LawnSite Silver Member
    Posts: 2,085

    and it was attatched to something about Brickman, but thats besides the point.

    You are still taking a big chance if your not making good profit on these jobs. Say its a big job, your doing alright, but not what you should be. Well you have to pass up 6 other GREAT MORE PROFITABLE jobs because you don't have time to do them. Well Spring comes around and the company you bid low on decides they are going with JoeScrub82 this year to save $5 and won't give you your 10% increase!

    YOU LOSE!!

    I'd do it the honest way! If your pricing right in the first place, you should be offering the customer they're money's worth. If they don't want to pay it up front, chances are, they won't pay later.

    I would never want to have a reputation for "low prices" of all things. Thatr atracts the WRONG kind of customers!
     
  6. Sorry Guido I did not get this from anything that had to do with Brickman or any other LCO.

    This strategy has bought me a house, new trucks, new equipment, and lots of other toys over the years. So I would have to say it works. And it's almost the only one to guarantee lots of new quality accounts. You don’t have to use your bottom line, it was a suggestion. No it does not attract the cheepo customers that’s how you project your self. Also you should know how to read them to know if they are cheepo accounts. This is how to get a foot in the door. And that's what this biz is all about.

    LGF:blob1:
     
  7. Guido

    Guido LawnSite Silver Member
    Posts: 2,085

    I think my post was misread.

    #1 sorry if it came off the wrong way, I wasn't accusing you of steling this "strategy" from anyone.

    #2 I know it will work, and I've seen it before. I just think scary things can happen with it when people using it don't know they're bottom line. They will lose money on the deal and lower the benchmark price for the other guys that have there ducks in a row.

    When you say lower your price a bit, to me, that means bringing it from the high side for my area, down to about the average price for my area. When JoeScrub82 reads this, he may be thinking well, I charge $10 an hour now, so if I charge $6 an hour, I should get the job no problem!

    See what I'm saying?

    I hope I wasn't discouraging anyone from trying this out, just be careful, its a game of numbers, and to play you have to know the inside and out of ALL of yours!! If you don't you WILL LOSE!!

    Are we on the same page now?
     
  8. He is correct! This is not for all of you.

    LGF:blob1:
     
  9. kermit

    kermit LawnSite Member
    Posts: 138

    I'll make sure that my competition reads this post. I love it when they spend their time working jobs that have low profitability, keeps them away from the jobs that pay well. Only so many hours in the week and I'm glad they spend them cutting the local churches, sewage disposal centre, nonprofit housing etc. There is always some fool that will do the job cheaper, these companies crop up every year and we'll never see the end of them. I've had builders and comercial owners tell me "do this one for me cheap and I'll make sure you get the good paying job next year" yeah, right.

    The price is the price and if they don't like it, tough! Know your costs and always make a profit. If I'm not going to make money I'll stay home and drink beer. I'm proud to be the most expensive landscape contractor in the area.
     
  10. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Posts: 1,706

    Somehow I just don't see this working to my advantage in my market. All I ever see is a procession oc contractors playing musical jobs. From the looks of the jobs I don't think it's a quality issue.

    It's about the money!

    People won't stand for 10% a year raises unless your still underpriced. I can't see working for anyone, anywhere, if the price isn't right to start. If it takes you 2 seasons to get up where you should have been, Your working at substandard prices for at least 3 years not accounting for inflation. If you sell at a loss or breakeven the first year, and 2 price hikes to get where you need to be, how many years does it take to average back and come up with the profit you should have had?

    Extras are not dependable ways of covering shortfalls in basic pricing. It takes a lot of overpriced other work, to make up for short priced, high labor hour and equipment input mowing.
     

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