10% off last years price

Discussion in 'Lawn Mowing' started by Watkinslawnservice, Apr 21, 2005.

  1. Watkinslawnservice

    Watkinslawnservice LawnSite Senior Member
    Messages: 378

    I saw a flyer the other day for an LCO that said he would beat anybodys price by 10%. All the customer has to do is show him the bill from last year and he will mow them for 10% cheaper than that guy.

    Do you guys think this is a little tacky? He sure won't make any friends in the business. I think it is kind of dirty because there seems to be enough new accounts and people who are unhappy with thier present service to not have to sink to lureing customers away from other LCOs. Plus I think that all he will get is stingy pricks who will do anything to save a dime, including bailing on this guy when someone even cheaper comes along.

    I hope he gets lots of calls from customers of the kid down the block everyone knows that is cutting for $10 a yard. Lets see him beat that by 10%!

    Dave :waving:
  2. pagefault

    pagefault LawnSite Senior Member
    Messages: 492

    I still think that if you are competing on price alone, you can't win. That being said, there are customers who will shop for the lowest price. I suspect that they will tell you beforehand, to see if you will match it. If so, I would politely tell them, "No, I cannot match that price." If they are determined to go, give them a fake bill that shows you did the work for about 80% of what you really did and ask them to call you if it doesn't work out.
  3. grassmanvt

    grassmanvt LawnSite Senior Member
    Messages: 906

    This guy is probably doing everyone a favor. He can deal with all the price only cheap pita's out there. This gimmic usually doesn't last though. Either he will figure it out or go under.
  4. lqmustang

    lqmustang LawnSite Senior Member
    Messages: 620

    Draw up and invoice for your own lawn showing you paid $10/cut. Give it to him, and smile every week when he busts his rear to cut your lawn for $9.
  5. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Messages: 3,065

    Sorry, but thats business! You hear car dealerships all the time trying to beat the competition. I am running a lowest price guarantee ad and so far I'm 3 for 3 and the ad just came out yesterday. To all of the na sayer's that replied to my thread weeks ago, sorry but its working. The amazing thing is that I explain to the customers how the guarantee works and they don't even bother getting any other quotes, well at least these 3 didn't.
    I certainly don't "lowball" with my estimates, but I have a very low overhead so I can afford to go a few bucks less. BUT...! I also am seeing some of the other guys service from last year and it was terrible, not edging, or trimming etc. I often wonder how in the past 2 years people like this keep getting customers in a high $$$ development and I seem to be on the outside looking in. But this year its been 180 degree turn around for me! :waving:
  6. Watkinslawnservice

    Watkinslawnservice LawnSite Senior Member
    Messages: 378

    I am happy that it seems to work for you. I really wasn't trying to bash anyone for doing this but just throwing it out there for discussion mainly.

    1 question I have though is, what if someone comes to you with a rediculously low quote from some scrub? Do you still honor the guarantee or do you have a way of getting out of it?

    The only point I was trying to make is that a company has to know it's own bottom line, not someone elses and I would feel uncomfortable letting the other LCOs dictate my pricing. Plus I guess maybe I am different than most people but I tend to want to do business with the guy who gives me the most reasonable quote the first time. I know what you are doing is a little different than this but I hate it when someone gives me a quote for something and when I tell him that I can get it cheaper he drops his price. I will still go with the other guy in most cases because he gave me a low bid honestly.

    And lastly, I am not trying to be an a@@ hole but as far as your comment about you not being a Lowballer, I would have to say thats exactly what you are if you are going to give a low price guarantee. Don't get me wrong, I have no problems with this if thats what you want to do but then face facts.

    Good Luck
    Dave :waving:
  7. Precision

    Precision LawnSite Silver Member
    Messages: 2,995

    I don't let the guy who is now out of business dictate my prices.
    I don't let the customer dictate my prices.

    I don't work twice as hard for half as much.

    I DO try to work half as hard for twice as much. That is how it should be.
  8. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Messages: 3,065

    Dave no offense taken :) But if I come in and bid a job 2-3 or 4 dollars lower than xyz company and lets say they are a bigger company with tons of overhead (equipment loans, 10 employees etc) How does that make me a "lowballer"? See to me a "lowballer" is someone who bids a job at a rediculous rate, none of the estimates I give or have landed are even close to a rediculous price. Just an example and this is the honest to God truth, On Friday evening I gave an estimate to a guy in a up scale neighborhood the property is a little over 1/2 acre mowing area, he has been through 3 different llc in the past 5 years, one who stole from them, one who tried to take advantage of this guy's blind wife (by telling her things were done and they were not) and last year this company tried to bill them 3 times for the same service even after they showed this company the cashed check! Now how crazy is that? ;) The last company said they edged all of the sidewalks and never did, said they did the string trimming and never did etc. This guy tried to come back this year but the homeowner said no thanks. My estimate was $45.00 for mowing, trimming, edging sidewalks and a final clean up, the other guys was at $35.00. Its easy to bid against idiots like this. But there are stipulations in the guarantee. Some may still view this as lowballing but to me a couple of dollars less is by no means lowballing.
    And if I am in a good position $$$ wise to be able to afford a couple of bucks cheaper then heck yeah I'm gonna take it!
  9. Watkinslawnservice

    Watkinslawnservice LawnSite Senior Member
    Messages: 378

    You will have to let me know how this ends up working for you. I will be curious to know if you decide to use this tactic again next year.

    I guess I am a pessimist and very sceptical of someone who says they went through 3 LCOs in 5 yrs. It may all be the honest-to-gods truth but thats a lot of bad luck.

    Time will tell.

    Good Luck
    Dave :waving:
  10. Jeff@SGLC.ca

    Jeff@SGLC.ca LawnSite Senior Member
    Messages: 576

    Hey not knocking you here either cause I like some of your posts but by looking at your list of equipment and such, I would think your overhead would be in the moderate area, not low.

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