" my neighbor is now going to cut lawn"

Discussion in 'Lawn Mowing' started by williams lcm, Jan 27, 2014.

  1. DaveyBlue32

    DaveyBlue32 LawnSite Member
    Posts: 136

    See guys, I'm not the only one who cares about holding myself and my industry to very high standards and living as though chlorophyll flowed through my veins. LOL
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  2. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    I find the analogy appropriate. He wasn't insinuating that a dealer may actually do this, just asking how you would like it if they did.

    How about if your favorite gas station raised your price per gallon by 50 cents because he saw you at another gas station? Or your grocery store added 10% to your purchase price because you also shop at another grocery store sometimes?

    I look at it this way, if you charge them an extra $5 just for taking them back then you weren't charging enough to begin with. We don't set the prices, the customer does.
     
  3. Groomer

    Groomer LawnSite Bronze Member
    Posts: 1,421

    one of the reasons we're still at 1999 prices.
     
  4. ducnut

    ducnut LawnSite Bronze Member
    Posts: 1,569

    And, unfortunately, some LCOs are fine cutting for that. If everybody would quit cutting for that, eventually, the prices will come up. But, some people don't understand, no matter how many times it's explained to them.
     
  5. echo

    echo LawnSite Bronze Member
    Posts: 1,685

    Am I on the gas station or grocery stores schedule? Do they have somebody scheduled to specifically take care of me on a specific day or time? Obviously not, therefore I have no feelings on it as its not pertinent to the situation.

    If I wasnt charging enough, then why would the customer be looking for a better price to begin with?

    I set my prices, not the customer. If they agree, I'm happy to have them. If they don't, I move on.
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    Last edited: Jan 29, 2014
  6. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    No, you actually have it easier than the store does. The store has to hire labor to stand around and wait, just in case you come in. If the store doesn't have reserve staff ready to go just in case there's a rush, the customers ultimately get tired of poor service and shop somewhere else. You already know what your labor load is before you even start the day.

    You don't set your prices. If you set them too high, no one will purchase your service. You will either lower the price to where the customer thinks they're getting a good value for their money, or you go out of business.

    This is fact. I've done this to 3 of my service providers in the last 2 years. One was my garbage man. We pay for our own garbage collection where we live. For 3 years in a row the cost went up. After the second year I told them not to raise the price again. Well they did raise the price the third year and now I have a new garbage service. I set the price I was willing to pay, not the garbage service.
     
  7. echo

    echo LawnSite Bronze Member
    Posts: 1,685

    Sounds like you have time to deal with squabblers or perhaps are one. Im betting the garbage service will feel zero affect and will pick up somebody who was upset with the service youre using now and switched over to your former service. I'm also betting your new garbage service will eventually also raise their rates on you, and you'll pay it. After all, theres only so many garbage services and you need to get rid of your garbage.

    Also sounds like you feel that dealing with squabblers is a good idea. Perhaps you need more/their work. I dont. Nor am I going to coddle or run back to them when/if they get themselves into a bind after they drop me for someone else without raising my price.

    I know what my cost to do business is and set my rate accordingly. My rate is fair. You have the idea that by me raising my price $5 to take the customer back that I wasn't charging enough to begin with. Again, nonsense. It may take awhile but squabblers eventually run out of people to do work for them to where they don't have much choice to pay more. After all they called me/you back. Taking them back and being at their beck and call after they dropped you for someone else is when your customer runs your business and sets your price. This is where you should realize you need better customers.
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    Last edited: Jan 29, 2014
  8. Roger

    Roger LawnSite Fanatic
    Posts: 5,917

    This would be true if grass cutters were offering unique services. There is nothing unique here. The line of people waiting to service those you don't want is long. The line will never run dry. The customer will alwalys find somebody who will work for what they are willing to pay. Newbies are always getting into the game because the service is low-cost entry, no skills or training are needed. They are willing to take new customers at prices the customer wants to pay. Grass cutters are unable to corner the market because of the menail task it is, low-cost entry, and skill levels.

    If you with to have clout in setting high prices, then you need something unique that nobody else can offer.
     
  9. echo

    echo LawnSite Bronze Member
    Posts: 1,685

    Newbies and low ballers can deal with the squabblers. They belong together. In most cases newbies and low ballers dont last. Hence the squabblers are usually always looking for a new/better deal...but not all customers are squabblers. Good customers appreciate good/great service at a fair price.

    Theres a difference between setting fair prices and high prices.
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    Last edited: Jan 29, 2014
  10. ducnut

    ducnut LawnSite Bronze Member
    Posts: 1,569

    That's not what has happened, here. We have a huge, corporate trash service that continually gobbles up smaller companies, to gain area, and raises the rates. About 5 years ago, a couple brothers got together and bought a decent garbage truck and a small set of routes from their employer who was primarily a roll-off provider. Initially, they set their rates at $3/mo cheaper than the big company. It was like the plague spreading. All the green totes in town were being replaced by brown ones. These two guys couldn't get totes out fast enough in their pickup, so they bought a 20' trailer to get more out, per night (because they were picking up trash, all day). Today, they are still cheaper, than the corporate guys. The big company has laid off nearly all their drivers, eliminated office personnel, and laid off nearly all their mechanics. To say that one customer leaving a service provider doesn't affect them, is short-sighted. If one leaves, then another, and another, eventually word gets around, people get frustrated, and that one turns into a bunch. My alley splits 3-block long, dead end streets. There is only one green tote left, in the length of it, and it's a house where the three adults who live there all pull a government check. Your tax dollars are keeping the corporate giant in my alley. Your tax dollars sided, roofed, and put new guttering on their house.

    For me, I only see potential. Every person I see, meet, or talk to is a potential client. If not them, then, it could be someone they may know. Not everyone in their circle is going to be the way you describe.
     

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