TG marketing tactic

Discussion in 'Pesticide & Herbicide Application' started by MOW ED, Mar 23, 2006.

  1. MOW ED

    MOW ED LawnSite Fanatic
    Posts: 5,028

    Got my personalized letter today stating that they will do the first application for 29.95. I have about 15K of lawn. The also said they will beat any invoice from a competitor. I should write a quote for materials on my property and see what shows.

    It is a true marketing machine. One of my customers ( a former TG customer) got a letter from them asking for his business again. I am doing well at 40 an ap on his property but TG is asking for 47 per ap. (no special pricing for him). I know my costs and margins and I know I am doing well at my rate so I don't know where they are coming up with that but holy shite I don't want to be a lowballer compared to TG. WHat are you finding?
     
  2. cemars

    cemars LawnSite Senior Member
    Posts: 387

    Read the fine print. The add says the 29.95 is good for up to 5k or so. The beat any price also applies to the fist app. only. TG is in fact a marketing machine, but they also need to make money. They need to market aggressivly to replace the 30 plus percent of customers they lose every year. If you are low balling tg/cl's pricing you are no better than they are, and that isn't saying much. Stick to your guns.
     
  3. Xterminator

    Xterminator LawnSite Senior Member
    Posts: 279

    Every now and then TGCL has a new salesman that prices every thing high how many Sq Ft is your Cust
     
  4. lawnservice

    lawnservice LawnSite Senior Member
    Posts: 589

    there's a lawn doctor franchise located about 50-60 miles away from my home. they send these letters out every year. i called them and spoke to a manager, he told me they get their info from the town/city hall.

    my lawn is small, but my property is rather large. the letter they send me is quoted way high for my lawn. see their info is correct on property size but they have no idea most of that is wood land.

    like the manager said....its all a numbers game. they know in a situation like mine that they will never sell me. yet other properties are quoted very low. for instance we lost a customer to them last season. he was quoted a very low price. the guy actually owns two lots side by side. the lawn doctors info was for only one lot. they sent the letter and our customer jumped at the price. of course once the service guy showed up he knew he was in trouble. the customer ended up getting very slow service and i expect the appliucations were light on product.

    that customer just resigned with us again. the lawn doctor raised their price for this season.

    sorry, after my ramble i forgot your question?
    anyway i do not like trugreens tactics (they have called ouir customers in the past and have claimed that they bought us out...very unethical) but i do respect the fact that they know how to add customers. this is a business and no other company makes the money they do
     
  5. DUSTYCEDAR

    DUSTYCEDAR LawnSite Fanatic
    from PA
    Posts: 5,134

    in my area there r 5 big guys and they r killing each other over price and giveing away 2 free apps and all kinds of other things
    the biggest problem is they make the customer think that they shoud get 2 free apps all they r doing is driving down the price
     
  6. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    Just got off the phone with a client tonight that told me that TG quoted him $175/app and he got another quote of $160 from another company. This is for a 2 acre property. What do you think of that? Would you apply product for $1.81 per 1000 square feet?
     
  7. indyturf

    indyturf LawnSite Bronze Member
    from Indy
    Posts: 1,873

    their pricing is all over the place! I have customers that had said TGs price was double mine and yet others say my prices are high compared to TG! don't try and figure them out, just know what it takes to do the job right and what you want as your profit margin. in the end quality wins!
     
  8. MOW ED

    MOW ED LawnSite Fanatic
    Posts: 5,028

    Funny you should mention that I had another guy call me for an estimate and he actually showed me the invoice from Spring Green. $140.00 for an application. This is what he paid last year on 80,000 sq ft. My sales pitch is good but I told him there is no way I can even come close to that. If he appreciates what I said he may call but if hes kickin tires he now knows I am far from the cheapest guy around.
    CMARS that property is about 6600 sq ft or 6.0 per K. That may be high or low for where you are but it is right in the park for my town. So no I don't lowball TG its that they had a long term customer who blindly went with their increases and finally figured something wasn't quite right. I don't have big white trucks with fish on them to pay for and I run a tight business. Can I charge more, possibly but I am not the highest nor am I the cheapest.
     
  9. NattyLawn

    NattyLawn LawnSite Bronze Member
    Posts: 1,643

    I agree indy. I guess in different branches you get different prices and sales tactics. It's so all over the place it makes you wonder if they could make 2 billion if they were even a little bit organized. I never worked for them, but I did work for Scotts and it was chaos every other day. Between manager and employee turnover as high as it is, I guess it's hard to keep the train on the tracks.

    MOWED...40 bucks for 6600 sq ft is cheap for my area. I don't know about WI though.

    Lawnservice...Did you give the guy who went to LD and came back a little "price increase"?
     
  10. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    I can say that each branch sets its own price and its negotiable. In a competitive market they will do it at a loss to grow customer base. Use it to your advantage, let them do there thing for a yr and they will educate your customer for you.
     

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