What do you think?

Discussion in 'Business Operations' started by MDLawn, May 8, 2013.

  1. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284

    If everything is equal between you and your competitors when it comes to quality and consistency of work, but you are higher priced (whether it be correctly or actually trying to make money vs just paying your bills) and put more effort into branding and employee cleanliness. How can you compete without lowering your price?

    Just creating a discussion here as I refuse to lower prices.
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  2. maynardGkeynes

    maynardGkeynes LawnSite Senior Member
    Posts: 409

    Lower your costs.
     
  3. alldayrj

    alldayrj LawnSite Gold Member
    Posts: 3,759

    Be a better salesman. Aka make them like you more
     
  4. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284

    Again I'm not necessarily having this problem just noticing that there is some really good work being done and some absolute garbage (mainly on commercial sites). And some of the good work is being done by cheaper contractors tha"appear" to be doing well.
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  5. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284

    Meaning how? EVERYONE and their brother says this. Tell people reading this how to! What's your experience with lowering costs? What are your exames of this and how it made you compete better?
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    Last edited: May 8, 2013
  6. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284

    Got this down to a science.

    I hear ALL the time. "that guy was so pushy". "I couldn't understand a word he said". "he smelled soo bad". Yes I've heard that. I have an image I like to keep. Some would call me crazy but it works for me. And all I'm talking about is dressing nice.
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  7. maynardGkeynes

    maynardGkeynes LawnSite Senior Member
    Posts: 409

    Everyone has to look at his/her own business. In my case, I invested in new equipment that allowed me to lower my employee costs by hiring fewer people, with less down time. I developed a scheduling system that allowed me to route my crews more efficiently. I have added mid-level people to better supervise the efficiency and effectiveness of my manual laborers, many of whom are low-skilled. I changed health care providers. I now outsource all bookkeeping and billing. I studied up on methods that would minimize pesticide and herbicide applications. I minimize sole-source procurement of supplies. I substituted email advertising for much of my print spends. Didn't do all these things at once, of course. You look around, there are always ways to lower costs yet maintain quality.
     
  8. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284

    Now THAT is an answer ^^
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  9. Toro 455

    Toro 455 LawnSite Member
    Posts: 238

    Keeping expenses in check is all well and good. But if it were all about price we would all be shopping at Wall-Mart and eating at McDonalds.

    I think if you stick to your guns on price and quality you'll attract better clientele. Rising above the competition with loyal customers even if your prices are a little higher.
     
  10. Charles

    Charles Moderator Staff Member
    Posts: 7,851

    This is true. You just have to find people who want to pay a fair price. The type people know how much it cost to run a business or have some idea. These type people don't like to take advantage of others. I have had these type people pay me more than I was asking for. Hard to find these type customers in the lawn care business. You just have to look at your net income and the standard of living you desire. Decide whether lawn care can support the life style you want. Cutting expenses can only go so far. We are still at the mercy of the tax man, oil man, repairman etc. The cost of living is different everywhere in the country, but the cost of luxuries are close to the same
     
    Last edited: May 10, 2013

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