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seriously thinking about lowballing

Discussion in 'Lawn Mowing' started by bobbygedd, Aug 3, 2005.

  1. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    is it still called lowballing, if you are making MORE profit, than the guy you took the job from? here is my logic: billy bob's landscaping charges $30 a mow, but is only clearing 7% of that $30, or, $2.10. now, if i come in, steal billybob's accounts, by pricing them at $25, $26, BUT, i'm CLEARING 70%, or $17.50, does this make me a lowballer? how can i be a lowballer, if i'm clearing 10 times what billybob is clearing? here i'm thinking, with my new system in effect, and my very VERY low overhead, THE EFFICIENCY IS amazing, i can make millions upon millions, if i go to my exsisting accounts, and flyer the entire neighborhood with flyers reading, " WE WILL BEAT OUR COMPETITORS PRICES, GUARENTEED!" then place a similar add in the paper. thoughts?

    RKISTNER1 LawnSite Member
    Posts: 169

    BG Please! Don't use the S-Word.
  3. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    Come on Booby I know you read Sean's post about he is tired Scr-- posts. He probably also includes lowball. Your going to get yourself banned.
  4. Jpocket

    Jpocket LawnSite Silver Member
    Posts: 2,278

    I agree with you, have asimilar strategy, but I still feel that this hurts the market as a whole, b/c the next guy will find a way to make $17.50 on $22 - $23 mow it's a domino affect. It will still force everyone to lower their prices and work more volume.
  5. Bulletproof

    Bulletproof LawnSite Member
    Posts: 156

    You're gonna have some pretty pissed off competitor's... do what you will

    I don't know if you'll get tons of work because of this strategy since most people lock in with their landscaper/lawn dude because of quality, promptness, etc. They may not leave just because of price, at least not in my area.
  6. stumper1620

    stumper1620 LawnSite Bronze Member
    Posts: 1,889

    Is that really lowballing, I personally consider lowballing to be prior knowledge of a bid & undercutting due to knowledge others don't have. this is a low price guarentee, not really the same is it? you don't have prior knowledge of anything until the customer calls you.
  7. Remsen1

    Remsen1 LawnSite Bronze Member
    Posts: 1,020

    Bobby, I will say that most of your posts are not dribble as others would say. Your post spark the "outside of the box" thinking that we all need. I am a little surprised though at your thought of charging less; as you have always been a proponent of not charging customers less because you're more efficient. Similarly to not lowering your price from $30 to $20 because you can cut the grass in 2/3'ds time using a 61" vs. a 36", I don't think you should charge less simply because you can service the property in 2/3d's time with your new method vs. the old way. It opens the door to other LCO's picking up on your procedure and then (since they are willing to accept 7% profit), charge $10 to cut the same lawn. Not that this would necessarily happen.

    I think you should continue to charge what the market will bear for the services and not set the pricing in your area back to 1980's pricing.
  8. John Gamba

    John Gamba LawnSite Fanatic
    from ct
    Posts: 10,812

    Where have you been :dizzy:
  9. lawnworker

    lawnworker LawnSite Senior Member
    Posts: 899

    Low balling is low balling. Bobby how is your wife's real estate sales career going? I believe you would make an excellent Realtor. It would be easier then this lawn business. You could tell your clients lots of stories as you look at houses together.
  10. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    sure it is, i am garenteeing to beat my competitors prices. but i'm thinking about this, and i have competitors, larger companies, who openly admit to working on 7% profit, aren't THEY THE LOWBALLERS, on top of being poor businessmen? i'm doin the math, and isn't 7% of $30- $2.10? that, my friends, is ********!!!!! these guys are cutting these lawns for a bottom line of $2.10!!!! I , can cut the same lawn, at a reduced rate, say $27, and clear almost $19 bucks!!! now, the more i get in a row, the higher that # goes up. i mean, business is business, right? if you're mowing at 7% profit, you are a POOR BUSINESSMAN -IMO. poor businessmen, sink, don't they? it aint my fault if i can do it cheaper, but make more doing it. of course, if i do this, i'll have to hire armed guards to be at my side 24/7, but, who cares, i'll make enough to pay them

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