The Sweet Taste Of The Lowest Price

Discussion in 'Pesticide & Herbicide Application' started by The Ranger, Feb 12, 2006.

  1. The Ranger

    The Ranger LawnSite Member
    from NE Ohio
    Posts: 208

    Lot of comments on how low TG pricing is. Understand that you will probably never beat them on price, and if you do it is probably some customer they have serviced for years and has numerous increases that finally go fed up with their phone calls. Anyone who has been around can't understand how their marketing model (losing 25%-45% of their customer base yearly)works, but it must or they would have tried something different. At time of first contact with a potential customer make sure you ask open ended questions. Example would be, What was your experience with TG or whomever? As compared to a closed end question of; where you happy? Find out as much info as you can and you will learn it usually isn't about price. Once the sweet taste of the lowest price has long disappeared the sour taste of poor quality or just plain bad service remains. You will also learn what buttons to push to sell the customer on your service. If you find someone who is shopping for low price explain to him why you are not and if he is still shopping low refer him to the low baller in town that does poor work. Every town has at least one. And also know you won't sell everyone, some people just can't resist the low price no matter how poor the service. Just pass them by cause they call every few years for a quote.
  2. J Hisch

    J Hisch LawnSite Senior Member
    Posts: 952

    Ranger some very good points, personally I feel people go with Tru-Green for a few more reasons than just price. How often at a Mcdonalds have we all recieved Bad service at some point? But how many of us still go to the same Mcdonalds and get that Big Mac quickly forgetting the problems of the past. Same situation eventhough they have gotten rotten service in the past they still will try them again. Yes, their prices are low sometimes, however we are creatures of habit, people go with what they know. Selling "Quality" is key how ever with every LCO in the world promising Quality, Quality, Quality, what makes our words so differernt. In the customers eye's probably nothing. We sell the Quality with a competivite price. I see our only real difference coming into play by being the "local guy". When they call they can get the decision maker, the owner. That's what sells for us, we are known to be extremely competitive on price, due to our affiliates nationwide and our purchasing power. Where most guys are spending 65.00-80.00 per acre for R1 on cost ours is 40.00 per acre cost. for R1 When we have that type of room on margin our price may seem low but our profits are still high. But price is definatley not my first selling point. My first selling point is your job is right or it's free. Period.
  3. Nitroman

    Nitroman LawnSite Member
    from indiana
    Posts: 217

    I don't ever see TG raise prices, I come across customers that have been with them since the 80's and thier price per treatment is still $24 per app!!
  4. Meadowbrook

    Meadowbrook LawnSite Senior Member
    Posts: 467

    The funny thing is that this year so far, about 85-90% of my NEW clients were from Tru-Green's screw-ups. Thats right, and the nice thing is that I can stick to Tru-Green's pricing and make a decent bit still. As far as the $24/app, well, I wouldn't even park one of the trucks for that, but the one's I'm getting are around 12k square feet. Here's a tip, go to a homowner who has TG, hand them your card and ask them to stay home and watch TG's guys do their yard. They'll call you after they see exactly what is being done to the yard....My clients said that TG hits about half of the yard when they spray and the granulars are VERY wide spread, no wonder they can charge less than everybody, cause the guys do less..........just some food for thought.
  5. Nitroman

    Nitroman LawnSite Member
    from indiana
    Posts: 217

    That's very true

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