Rant: Scabs and Lowballers

Discussion in 'Business Operations' started by Mack77, Apr 1, 2011.

  1. Mack77

    Mack77 LawnSite Member
    from NJ
    Posts: 208

    I run a very small, but LEGITIMATE company. I'm fully insured, licensed, pay state income taxes, worker's compensation, etc, etc. A few of my $70/week customers have called me up saying they have offers to cut their lawns at $40 from other LCO's. When I first started 8 years ago, these very properties were $60 weekly lawn mowing properties! How do shave off 30% from 8 years ago!?

    This year, my insurance premiums are increasing, my one employee deserves a raise for good service, fuel prices are increasing...how are we supposed to keep our heads above water when we're constantly getting cut down at the knees by these illegal lowballers?

    I know this must be the 100000000000x post about this crap, but had to vent.
     
  2. tlc1994

    tlc1994 LawnSite Senior Member
    Posts: 290

    Let me ask: do you know to a certainty that these guys aren't legit? They could just be very poor businessmen; in that case, they won't be around long. But if they aren't legit, your customer is still entitled to their decision, no matter how poor of judgement it is. Hopefully your customers have enough loyalty to stick with you and realize what they would be losing quality service and reliability, just to save some money. If worst comes to worst, and a customer wants to let you go, I would tell your customers (politely) to ask the new guys if they are licensed and insured- in case they damage any property, and if the guys answer "no", then at least your customers will see the mess they are about to get into. That is what I would personally do.
     
  3. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 11,846

    Capitalism and free market.

    Same way WallyWorld has ruined retail pricing. Get used to it.
     
  4. tlc1994

    tlc1994 LawnSite Senior Member
    Posts: 290

    ^That pretty much sums it up. :usflag:
     
  5. Mack77

    Mack77 LawnSite Member
    from NJ
    Posts: 208

    Na they're not legal. My customer asked them and they are uninsured and not a "company". He is debating the decision because going with this illegal company could save some $$$.
     
  6. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 11,846

    Once again, thanks to WallyWorld and cheap mentality.
     
  7. vencops

    vencops LawnSite Bronze Member
    from NC
    Posts: 1,537

    I'm not saying anyone is right or wrong (and I am licensed and insured). But, let me ask you something.....

    In all your years of mowing grass......how many things have you damaged that cost more than a few minutes time and/or <$50? I'm always curious.

    $80/mos. savings is nothing to sneeze at. And, I'm betting most guys who mow grass for $40/yd. are making a profit.

    Good luck.
     
  8. DeereHauler

    DeereHauler LawnSite Senior Member
    Posts: 604

    it will never change. Position yourself to do something not every tom, dick, and john can do. We offer mowing in a maintenance package and we no longer go looking for just mowing jobs. We offer light excavation, hardscapes, and landscapes to avoid the low balling of the mowing world. Yes every field of work has low ballers, but mowing is the worst. Look around this site, it has how many members? Most of which mow grass, or just started.
     
  9. JFGauvreau

    JFGauvreau LawnSite Bronze Member
    Posts: 1,297

    This is why I mainly don't cut grass as a primary service for my business:

    1.- Low profit
    2.- To much trouble with customers
    3.- To much competition
    4.- Any customers would change company any day just to save 5$, even if the other company 5$ more was way better and more professional. If they can save 5$ they will. (At least in my area it's like that)
     
  10. DeereHauler

    DeereHauler LawnSite Senior Member
    Posts: 604

    taa daa. exactly
     

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