Outbid

Discussion in 'Lawn Mowing' started by SLCINC, Apr 13, 2007.

  1. SLCINC

    SLCINC LawnSite Member
    Posts: 110

    Is it just me or are people starting to become more and more price conscious this year. The past few years, I had very good success making sales, but this year, its like everyone is shopping around. They would go with a another company to save a buck or two even if they are professional and don't have any references. It could be because the Michigan economy has taken a couple hits. Ive also noticed many new companys out there, making it much more competitive. Are any of you experiencing this as well?
     
  2. MJB

    MJB LawnSite Silver Member
    from Wa
    Posts: 2,869

    I think it's getting worse every year. Many business know they can shop around and get a cheap price and do. To many people doing lawncare as a 2nd income. I just had a Realestate office that I've done a 2 yrs without any complaints decide that $15 per month increase was to much. The owner has not spoken to me yet but he is a multi mlillionaire who is just a jerk according to everyone who works for him. He still hasn't found anyone to do it yet. I'm not willing to give into the rich guys that want to screw the little guys just to save a buck. So just keep getting residentials commercials are usually a big pain anyway.
     
  3. MOW PRO LAWN SERVICE

    MOW PRO LAWN SERVICE LawnSite Bronze Member
    Posts: 1,567

    Blame it on every one doing lc,and the high fuel prices it always hurts.
     
  4. say'n somthin

    say'n somthin LawnSite Member
    Posts: 38

    I have experienced this and I use it as a learning tool. At first, I got upset but now if you ask the lost customer a couple quick questions about who you got outbid by, most of the time you will find it is someone new to the business who does not yet know their operating costs. This new business will find over time that they will need to raise their prices close to yours or they will be outa business and the lost customer will be calling you back. Where I am at, it is rediculous at how many new businesses there are and the prices they are charging. I just keep my quality the best I can and have a personal business relationship with the customer. You will continue to gain more customers.
     
  5. motoguy

    motoguy LawnSite Member
    Posts: 78

    I would agree with this. In other industries, I would think this would end up biting the customer. However, I don't know if that is the case in this industry. This industry is so easy to get involved with, and requires such a minimal investment (heck, if you've got a lawn mower for your house, you too can be a LCO!), that there are -always- new businesses cycling in and out.

    If a customer is shopping price only, isn't particularly concerned with quality, experience or knowledge, and is willing to hop LCO's each year (always going with a low, underpriced "new guy")...then...for their desired result, they may have a valid strategy.
     
  6. SLCINC

    SLCINC LawnSite Member
    Posts: 110

    Yea im just really sick of people saying, let me think about it, or I want to talk to my spouse. When I am very sure that they will be calling around for more bids. And when they get the other guy to come over, they may use my bid to get a cheaper price. Do you all leave the contracts with the potential customer if they decide that they want to think about it?
     
  7. supercuts

    supercuts LawnSite Silver Member
    Posts: 2,785

    i think im lucky ever time i see these threads. im in a very wealthy area, 200k a year income is getting to be on the low side here. sure there are the people who have lived here their whole lives and dont have as much, but any new construction homes in this area are 5000 + square feet and hovering around 800K-1 mil. so, i keep going up in prices and people keep saying yes. i just lined up a few couple thousand dollar easy jobs for next week. the more bump the prices, the more it seems people are eager and excited. i wish i could bottle and sell this. good luck and i hope things turn better for you
     
  8. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    there doinf it around here " Texas "

    I had a lady call me saying she's mad at her LC so I bidded the job then she said well they were 5.00 cheaper.....

    of corse I told her she can have them back for 5.00
     
  9. craigs lawncare

    craigs lawncare LawnSite Senior Member
    Posts: 310

    Here in Michigan, fly by night lawn care people are coming out of the wood work. I had 12 lawns when I started this season, 10 of which I have had for more than 10 years.
    I knew going into this season that the business was going to be more competitive because of the hideous Michigan economy, but I was blown away when I lost 6 of my lawns to other mowers who undercut me. All of which were by half my price!!!
    Now, let me just add that this is not my sole income, just some extra side money. But I also felt that I also had some customer loyalty as well.
    Oh well, I guess I should know by now (12 years in the business) there is no loyalty in this cut-throat business anymore.
    The beautiful thing here is that since all of these low ballers have started mowing my previous accounts, gas in Michigan has shot from about $2.50 - $2.60 per gallon to about $3.35 per gallon and gas is rising daily.
    This makes me smile. :laugh:
    So as gas prices rise around the country, I am actually rejoicing!!!
    Here is to $4+ per gallon!!!! :drinkup: :drinkup:


    Craig
     
  10. GreenN'Clean

    GreenN'Clean LawnSite Bronze Member
    Posts: 1,512

    What I keep seeing with people with the huge expensive homes cant afford to pay anything extra to have there lawns done so there looking for the cheapest guy to cut there lawns. Most got into those huge homes with the subprime loans and a couple years ago could afford to pay more and now they got hit hard with the high intrest rates its taking everything they have just to keep there homes
     

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