Price Point is Key in 2009

Discussion in 'Business Operations' started by nosparkplugs, Mar 10, 2009.

  1. nosparkplugs

    nosparkplugs LawnSite Gold Member
    Posts: 3,445

    Found out today I lost 2 new 20K plus commercial bids on price point alone. No matter your perceived advantage, or disadvantage in this economy it's cut throat period. The bidding wars have started in Memphis:) You may "click" with the local manager in charge of the property; however it's price point that's winning the bids. The bean counters are calling the shoots this year, no matter your size Solo, big or small, their is no clear cut advanatage in 2009 on new bidding so far. I don't purchase the cheapest, nor the best as a general rule myself, consumers just don't give a rats anymore their going DIRT CHEAP.
     
    Last edited: Mar 10, 2009
  2. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    I'm actually starting to get a little worried as well.

    Commercial property we maintain that is average between 16-1800p per month income over the last three years usually just takes the contract same day, signs and faxes back. Its been a little over a week now and no response. It wouldn't kill me but it sure would hurt.:cry::cry::cry:
     
  3. shade tree landscaping

    shade tree landscaping LawnSite Senior Member
    Posts: 915

  4. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    Is anyone trying the pay me now or pay me later angle? If so what has been your experience? Here between water savings, extending plant life and the overall value to a property a properly maintained L/S offers a person would be foolish to take the cheap guy.

    It would just end up costing them more in the long run. Significantly more in fact. That is my marketing angle for the spring, I am revamping some literature right now. Going from promoting just the quality to promoting the value.
     
  5. fool32696

    fool32696 LawnSite Senior Member
    Posts: 991

    How about I get my money, they pay whenever they want. Accepting credit cards is great. I'm not going into the business of financing, so no "pay me later".
     
  6. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    :confused: :hammerhead: :hammerhead: :hammerhead: :hammerhead: :hammerhead: :confused: whatever :walking::walking:
     
  7. fool32696

    fool32696 LawnSite Senior Member
    Posts: 991

    It seems I grossly misunderstood what you were saying. My apologies.
     
  8. soloscaperman

    soloscaperman LawnSite Gold Member
    Posts: 3,045

    I notice already that the people affected are big fertilizing companies, installation people like ponds, flower beds, tree's, customers will cut back on things that don't really benefit them. I got a customer that wants me to open her pool, fertilize her lawn and do everything but then I got the cheaps that want the basics.

    Lawns this year will be full of weeds, no edging, over growth, and brown burnt grass.
     
  9. RegalLawnCare.Com

    RegalLawnCare.Com LawnSite Member
    Posts: 106

    I've got competition this year (they started last year) plastering the area with $27 per/cut everywhere.....Not directly in response but with these guys in mind (and the economy), I felt I had to offer a competitive special - $30 per/cut + 2 free cuts for 1/3rd acre or less lawns....

    http://www.regallawncare.com/2009_flyer.jpg
     
  10. whoopassonthebluegrass

    whoopassonthebluegrass LawnSite Platinum Member
    Posts: 4,214

    The sky is falling!

    You're your own worst enemies...
     

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