Would You Lower Your Price ?

Discussion in 'Lawn Mowing' started by Scott's Lawn Maintenance, Mar 15, 2009.

  1. Scott's Lawn Maintenance

    Scott's Lawn Maintenance LawnSite Senior Member
    Posts: 296

    A customer called the other day and asked if I could do better with my price. I have been cutting the lawn for a few years , she said it was because of financial reasons. I don't really like the idea of lowering my price but don't want to lose a good customer. What would be a good solution ?
     
  2. birtchetg

    birtchetg LawnSite Member
    Posts: 30

    If they are a loyal and valuable customer that you want to keep you could offer them a compromise. Say you understand the financial difficulties that they are under and that you value them as a customer. Figure about how much you are making net on the lawn after costs. If you are making 10 bucks a mow net, drop the price 5 bucks a mow and tell them you will just charge them your cost until they get back on thier feet, or for 3 months or whatever. Or actually just charge them your cost. (I wouldnt do that)They will be happy with you because you are dropping your price to what they think is your cost. You will be happy because you are still making a few dollars on the cut and keeping a customer. Win Win in my opinion.
     
  3. mowerbrad

    mowerbrad LawnSite Fanatic
    Posts: 6,273

    If it is a customer that you want to keep I would probably lower it a little. But I would make sure that they understand that the price will be lowered only for the time that they need the financial assistance. After they aren't in a financial situation, then the price goes back up to the regular price.
     
  4. CEASAR LANDSCAPING

    CEASAR LANDSCAPING LawnSite Member
    Posts: 3

    You never let a customer know your cost. I f you want to keep the customer offer them a discount if they pay their bill early after they receive it each month. Or see if they can drop some type of service to lower the cost for them only to save them from dropping you , hopefully they will add that service again in the future when things are good .
     
  5. kaferhaus

    kaferhaus LawnSite Bronze Member
    Posts: 1,444

    everyone's situation is different. Although we rarely get this request we've never lowered our prices. I tell them the truth, we've been absorbing our increases in operating costs and not raising their prices for at least the past couple of years.

    We will not be anyone's "bank" (also why we don't bill residentials). The guy that owns the gas station won't lower his prices for me, the guy at the supermarket won't lower his either.

    Why folks think it's fine to ask the guys dong their lawn work to lower theirs is beyond me.

    Like many companies, we've had to increase productivity to maintain our margins. We've not done it by raising prices.

    Tell them to call the grocer and raise hell about the 25-30% rise in food costs the past year.

    Or call their congressman and raise hell about the subsidized "Ethanol" industry that's caused the cost of corn to go through the roof which has whats led the food prices across the board to skyrocket. It costs more to make a gallon of it than they can sell it for but the all knowing gubment is making sure they make a profit.... so much so that more plants are springing up for the guaranteed profits to make a product that not only sucks, but gets terrible fuel economy and wrecks engines.
     
  6. capelawncare.com

    capelawncare.com LawnSite Fanatic
    Posts: 8,136

    That really depends on the customer. I have a customer who is experiencing hard times, she makes payments to me on the Extra's like mulch and trimming. so far its working out. A few months ago she owed me close to a grand, now her bill is less then 300.

    I thought, taking it a on the chin for a few months, was better then loosing a customer. So i told her to pay me my monthly rate for lawn care, and pay me the rest, as she can afford it.

    I wouldnt do that for all of my customers though... just a select few.
     
  7. lawnboy2068

    lawnboy2068 LawnSite Member
    Posts: 104

     
  8. Carolina Cuts

    Carolina Cuts LawnSite Bronze Member
    Posts: 1,152

    It's advertisement season.... someone else is most likely willing to maintain her lawn cheaper, so she figured she would give the option to him first to match the competitors price.


    You are correct, the gas pump down the street won't lower the price for a customer, but the next station a mile away might be .05 cents cheaper.
    Same for the grocery stores.... Food Lion might have meat @ 5.99lb.... Kroger @ 5.79lb.

    I understand your comparison.... but it's not a good one. Price shopping was, is and will always be around....

    when money is tight.... loyalty could go both ways....
     
  9. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    I would ask her, if the price of fuel goes past $3 a gallon, would she be willing to increase
    the price no questions asked, and if so then you would lower the price until such time.

    And I hate to suggest it too just because gas is cheap right now...
    But I probably would, just this one time, keep the peace and be done.

    Oh yeah, I almost forgot...
    Then, start speculating in petrol heavily hahaha
     
    Last edited: Mar 15, 2009
  10. Proc's Lawncare

    Proc's Lawncare LawnSite Member
    Posts: 92

    Consider a new customer cost 10x more then keeping an existing customer... I might be willing to move a little on the price. The person is obviously price shopping, and why wouldn't she be? Look at Insurance company commercials on tv... Shouldn't you shop around? It's all over the media telling people to get the most bang for their buck, so consumers will think your just taking advantage of them if they don't try and get a few bucks off their bill... I would lower it VERY slightly, like maybe a dollar or two less, and explain you have operating cost and what not being a licensed business, but since you like having them and they are such wonderful people, you'll give them a $1 or $2 dollar discount, a buck shouldn't break your bank and it makes them feel like they won something... Just a thought...
     

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