Quickest way(s) to gain Market Share

Discussion in 'Starting a Lawn Care Business' started by newguy123, Nov 6, 2013.

  1. newguy123

    newguy123 LawnSite Bronze Member
    Posts: 1,094

    As the title states, what are some proven methods you've used to gain market share; and quickly?

    Thank you.
     
  2. jc1

    jc1 LawnSite Bronze Member
    Posts: 1,592

    A proven way to quickly gain market share would be to price very low. It proves successful time and time again. There is no quick and easy way to grow a profitable business. But working hard , being honest with your customers and build a relationship with them will pay off over time.
     
  3. newguy123

    newguy123 LawnSite Bronze Member
    Posts: 1,094

    Thanks for the input.

    I know easy isn't the route; never asked that. But there are quick methods compared to snail pace most LCO's grow.
     
  4. Sprinkler Buddy

    Sprinkler Buddy LawnSite Bronze Member
    from Florida
    Posts: 1,187

    Its who knows you, so get your name out there and prove yourself. A few get lucky and stumble upon some huge accounts right off the bat, that can be good as well as bad for your business. Best to grow slow and steady and don't get too big for your own shoes. Just my 2 cents!
     
  5. herler

    herler LawnSite Fanatic
    Posts: 5,144

    Underpromise, and Overdeliver
     
  6. twomancrew

    twomancrew LawnSite Senior Member
    Posts: 940

    Holy Lord, hire a marketing firm.

    The $0.99 Hamburger is on the menu for a reason. Cheap works too, as is proven time and time again, but you have to be able to afford the loss for it to work. So guys like me and you would hire a small local firm to advise and lead us through this.
     
  7. A. W. Landscapers  Inc.

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

    The $0.99 hamburger is a "loss leader"…they sell the hamburger at a loss to get you to buy the soft drink and fries which have a huge markup.

    Loss leaders work really well if you are able to sell something else at the same time that has a large enough profit margin to cover the loss from the loss leader.

    This concept doesn't work very well for a service company that doesn't have much else to offer…it's not like your clients are there to buy food because they are hungry. People need food and they want someone to mow their lawn. Lawn companies sell services that people want, not products people need. Retailers use "loss leaders" to get the customer into the store in hopes that they will "impulse buy" while they are in the store. It's very risky to sell your mowing services at a constant loss in hopes of selling your clients on more profitable hardscape and landscape projects. Most people don't "impulse buy" when it comes to lawn & landscape services.

    The "loss leader" concept is different than the "bait and switch" that many window replacement companies use with their "new windows installed for $99" deal…those $99 windows are just a ploy to get the salesman's foot in the door so they can up-sell you on a better window/better installation that is more expensive and has a higher profit margin. I've never really liked this concept because I feel like it is being a little deceitful because there is no real intention of selling the $99 window installation because it is not in the best interests of the client or the company. It's kind of like putting something like "most lawns $30" on your advertisement and then telling most of the potential client that their lawn service is going to cost $40. Even though you could do their lawn for $30, you really want to charge them the more appropriate price of $40 because it will be more profitable for you and you will be able to provide better service if they are paying the higher price because the higher profit margin allows you to have more flexibility with time spent servicing the property.

    Anyway, the quickest way to gain market share is to purchase existing companies.
     
  8. newguy123

    newguy123 LawnSite Bronze Member
    Posts: 1,094


    Marketing Firm? Have you tried this; how has this helped your business? Do you have any number specifics; i.e. percentage increase in revenue?
     
  9. twomancrew

    twomancrew LawnSite Senior Member
    Posts: 940

    No, I don't have that for you. All I have is a good edumacation. Not good enough to learn about "loss leader". My wife has for 10 years now been an assistant marketing director at her job. Or maybe it is assistant "to the" director. Eitherway her boss is the real Michael Scott.

    If you call a marketing firm they will be glad to show you what they have done for other companies in your area. You will need to pay for research so they can really help you.

    I'm not a Dr so I don't do my own physical(although I frequently check out my balls). I'm not a lawyer so I didn't write my own will. I'm really good at running a business. Next year I have added 93 acres to our work load. I am currently looking to lease around 5K in shop space to put the second new mower in. Signed it last week, taking delivery in Feb. 2014. I don't do marketing. I pick an account and I go after it. Has worked well for the last 4 years. We'll be mowing almost 175 acres a week next year. A cemetery with 10,000 headstones included. 2 other cemeteries too that we already do. I pay sales tax, I dodge income tax but the self employed tax is always waiting to be paid. I have a 2 year spray permit from the state. You getting the picture? I don't mow grass for a living I own a business now.

    I would say the comment about buying others out is probably the most sound advice and I'm a little :cry:that I didn't think of that. Now how you going to convince a profitable business worth buying to sell to you? I would sell you mine(if the price is much higher than I think it's worth):)
     
  10. Utah Lawn Care

    Utah Lawn Care LawnSite Bronze Member
    Posts: 1,368

    Be in a city big enough you have a high potential client base. I live in a 25k city so I am limited. Having said that, I gained 20 weekly customers this year. Roughly 17 of them were gained through the internet. 3 from post cards. If you're serious about this, and want to get a legitimate business with lots of employees etc I would put a lot of money into a professional website built by a SEO expert then have a legitimate seo company keep you at the top of google. Post cards work well but they are expensive. If you're not afraid to throw 10k into post cards and you're in a big city I think you could gain 40 clients in a matter of a month in the spring.
     

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