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Discussion in 'Pesticide & Herbicide Application' started by thomsoutdoor, Feb 10, 2005.

  1. thomsoutdoor

    thomsoutdoor LawnSite Platinum Member
    Posts: 4,443

    New to this sight so I hope I am not repeating a question. I have had a lawn business in Baltimore MD. for 15 years and I am branching into Fertilizing this year, legally this time. Of course my biggest competitor will be Chemlawn. Has anybody figured out how they set there pricing? I know what my cost are and at times they seem to be doing properties below cost. How can I compete with that? Thanks for any suggestions Mark Thomsoutdoor/Progreen
  2. J Hisch

    J Hisch LawnSite Senior Member
    Posts: 952

    never try to compete by price. Sell your individual professional results. If you get into a price war with them you will not win. They are porbably paying 1/3 for there chems as you are.
  3. Hamons

    Hamons LawnSite Senior Member
    Posts: 706

    Chem lawn will vary from place to place -- but they are always the cheapest. Look for other companies to judge your market by.

    Although you can't judge your prices based on theirs -- you do need to base your prices on what the market will ebar and then designa aprogram to be profitable at that price point!
  4. slow release

    slow release LawnSite Member
    Posts: 94

    TG/CL is notorious for slashing their prices just to make a sale. This stems from the fact that a sales rep is usually the one trying to gain sales. It's true that they probably pay less for materials, however the techs doing the work typically earn production commissions. That means the more work they produce, the more they make. Low-ball application prices means they will cut corners whereever they can to get to the next stop. In the long run, this becomes obvious to the customer and they realize why they are so inexpensive.

    If you stick to your prices and do quality work, you will be better off. Peeople who aren't willing to pay for quality are not the customers you should be looking for. Sell yourself as a professional and they will come
  5. westwind

    westwind LawnSite Senior Member
    Posts: 444

    If you stick to your prices and do quality work, you will be better off. Peeople who aren't willing to pay for quality are not the customers you should be looking for. Sell yourself as a professional and they will come[/QUOTE]

    This is the best advice you can take, along with a good understanding of " profit and loss" Good Luck! payup
  6. 2 man crew

    2 man crew LawnSite Senior Member
    Posts: 403

    Chemlawns bids are all over the board. I've seen bids for $42.00 for 15,000sq. And I've also seen one for $67.00 for 5000sq. No rime or reason. But for the most part they are not the cheapest low-baller in town.
  7. marko

    marko LawnSite Senior Member
    Posts: 963

    Dont worry about chemlawn's prices. They almost always shoot themselves in the foot on quality. You need to know what you need to make to run a profitable business. There is no way you can compete with Chemlawn. They buy massive quantities and get the best prices. A good selling point I have used is trying to get my apps down in 4 visits. On bluegrass I would do .5 lbs, 1lb, 1lb, 1.5lb (after grass was dormant) of nitrogen. I mowed weekly so could take care of any small problem areas with weeds. Chemlawn would sell 7 applications @ $22. I could go in at 4 @ $35 and be cheaper. These were on the tiny yards.
  8. Pilgrims' Pride

    Pilgrims' Pride LawnSite Senior Member
    from MA.
    Posts: 481


    I run into that with more than TG.
    Seems many of the nationals pull this crap.
    Anything to make a sale I guess.

    I myself will not cave and lower my own prices to compete with them.
  9. lawn king

    lawn king LawnSite Silver Member
    Posts: 2,279

    Pilgrim's pride said it well, i will take it one step further,as i believe it to be true. If you cut your price at any time to compete, your business is in trouble! The nationals can't compete with awsome customer service,fast response to phone calls,same day call backs,etc. Sell your reputation and good service,that is how small companys survive!
  10. David Hartzog

    David Hartzog Banned
    Posts: 532

    cl/tg sells topchice at 3.5 x cost per 1,000 sqft. i called florida.

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