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" my neighbor is now going to cut lawn"

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

  1. A. W. Landscapers  Inc.

    A. W. Landscapers Inc. LawnSite Bronze Member
    Posts: 1,287

    1. You showed up
    2. You assessed the property
    3. You happened to quote them a price that they determined was a reasonable price for you to be charging for your services
    4. They hired you because your price was at or below the maximum amount they were willing to pay
    5. You cut the lawn on a weekly basis
    6. The client decides your price is higher than they want to pay
    7. You refuse to lower your price
    8. The client fires you because your price is now higher than they are willing to pay
    8. a. The client hires another company who quotes them a price that they determined was a reasonable price for this company to be charging for their services
    9. Your former client is unhappy with their current lawn service provider and asks you to come back
    10. You quote a price $5 higher than the old price
    11. You happened to quote them a new higher price that they determined was still a reasonable price for you to be charging for your services
    12. They hired you because your price was at or below the maximum amount they are now willing to pay

    Is this "any easier for you"?
     
  2. echo

    echo LawnSite Bronze Member
    Posts: 1,685

    They hired me back at a higher rate because they need their lawn cut, realized the grass wasn't greener somewhere else and agreed to pay more. Whether you like it or not sometimes we have to pay up and sometimes more than we want. Goes for many things.

    Is that any easier for you to understand?

    Seems many have a problem when its said that the customer runs your business and sets your prices rather than the other way around. We charge fair prices. Lots of good customers out there that you don't have to deal with the squabblers.
    Posted via Mobile Device
     
    Last edited: Feb 2, 2014
  3. Roger

    Roger LawnSite Fanatic
    Posts: 5,915

    echo, ... I see you continue to use the word "fair" in conjuction with pricing. But, what is missing is your definition of "fair." "Fair" is subjective. What customers are willing to pay for product/service is objective. "Fair" means nothing to the customer, only the final price. These princples apply, regardless of industry.

    I see you ignored the JCP example. JCP was unable to continue to dictate prices, and was forced to remove the CEO and return to a customer-driven model. The model used at Apple would not work for JCP. Now, Apple is discovering their model is not working very well any longer. More and moe buyers are rejecting the price points of Apple products. Apple products once were unique, but have devolved into a commodity. Commodity markets work this way, and lawn services are a commodity.

    In the lawn business, the LCO is unable to impose their will on the customer. In other words, the final decision ALWAYS resides with the customer. This is true for your ongoing example -- the customer accepted/rejected the first price, the customer accepts/rejects the first price + $5.00. Only when the payee accepts the proposal is there a business deal consumated. It matters not about previous business relationships.

    If an LCO goes to a local mowing equipment dealer to consider a new ZTR. For the sake of argument, the dealer's price is $8,000. The LCO rejects the deal, but returns two or three more times to look more closely, talk with the dealer about a different price, but in the end, rejects the deal. The LCO buys the ZTR from another dealer (price is irrelevant). In other words, the LCO establishes themselves as a squabbler.

    The next year, the same LCO returns to the dealer to consider buying a w/b. The w/b price on the tag is $5,000. The dealer looks at the LCO, who was a squabbler the previous year, and says, "For you, the price will be $5,500." The dealer thinks that because the LCO was a difficult customer the year before, he/she adds $500 to the price for the w/b. You can use the same example, but the item in question is a second ZTR, but the dealer applies the same principle -- up the price because the LCO had establshed himself as a squaabler.

    Is the dealer right in adding the uptick of $500? In your model, yes.

    In the end, the LCO (buyer) controls the transaction, either accepts or rejects.
     
    Last edited: Feb 3, 2014
  4. echo

    echo LawnSite Bronze Member
    Posts: 1,685

    Youre taking it way too seriously. If/when somebody comes back they get charged $5 more. Pretty simple.
    Posted via Mobile Device
     
  5. Roger

    Roger LawnSite Fanatic
    Posts: 5,915

    echo, ... sorry you are out of attempts to justify your postion.

    However, we really like LCOs with your thinking. It provides a steady stream of good customers for us because of dissatisfaction with their prexent LCO. Keep truckin' ...
     
  6. echo

    echo LawnSite Bronze Member
    Posts: 1,685

    Don't be sorry. I'm sorry it offends you so much that you've taken so much time to compare $5/week to a $500 machine and a multi-million/billion dollar company.

    The squabblers will always find lowballers. The thing is, they may call us back afterwards. Its why we're able to charge $5 more.
    Posted via Mobile Device
     
    Last edited: Feb 3, 2014

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