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How do you deal with cheap competition??

Discussion in 'Starting a Lawn Care Business' started by Albery's Lawn & Tractor, Jan 15, 2007.

  1. Albery's Lawn & Tractor

    Albery's Lawn & Tractor LawnSite Bronze Member
    Messages: 1,674

    Over the past few seasons it seems like everyone in our area that has a trailer and a murray from wal-mart is cutting grass commercially. The few of us companies that have been around a while are losing accounts to these guys, I mean there work SUCKS but I guess they make up for it by charging $20 on a $50 job. How do they make money? It takes them 2 hours to do a yard when I'm done in less than 30 minutes. Are there other areas out there like this and do you deal with it? Should i just sell all my equipment and try to find a 9-5?
  2. carcrz

    carcrz LawnSite Silver Member
    Messages: 2,085

    Steal their equipment. J/k They are making money because there will always be people looking for a deal. A lot of them do this as a part time job. If I come across somebody that I know is loballing me, I give them a phone # of a guy who has houses down in the hood where I know their stuff will get stolen.
  3. KrayzKajun

    KrayzKajun LawnSite Fanatic
    Messages: 10,737

    Welcome to the world of Low Balling!
  4. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Messages: 2,988

    I quit worrying about them.

    Lowballers will not sustain their business for any length of time and become profitable.
  5. Jlawnmow

    Jlawnmow LawnSite Member
    Messages: 154

    There is alot of business. Don't let it get you down. Just move on and dont mess with them. People who pay cheep, are cheep. Meaning they are a pain to deal with.
  6. LB1234

    LB1234 LawnSite Gold Member
    Messages: 3,208

    There are a few things you can do.

    1. Become a better salesman. If you are 5,10 $ more expensive learn to sell the value of your company not the price your company sells its service for.

    2. Offer services that the lower priced competition may not be able to provide (landscape service, pesticide application,) etc.

    3. Wait it out. Chances are the customer is going to get what they pay for. They will eventually get fed up with the new service and perhaps try and get back with a reliable service (for more $ of course).

    I always say to myself when losing accounts that are gotten soley due to price...do I really want that price shopper as a customer? OR...do I want a customer that wants me.
  7. ed2hess

    ed2hess LawnSite Fanatic
    Messages: 14,465

    I guess it goes without saying if you are charging $50 and they are at $20 that is going to be a problem. In our area there is one big/goog company that is advertising some agressive prices. To stay in the ball game we have got to get close. Usually customers won't leave for a few dollars. Provide a yearly contract and get the monthly price down and then offer some easy payment method. People don't like being bothered with invoices and bills for every mowing but will tolerate monthly.
  8. Albery's Lawn & Tractor

    Albery's Lawn & Tractor LawnSite Bronze Member
    Messages: 1,674

    Thanks for everyone's advice you guys are one heck of a support group:drinkup:
  9. Uranus

    Uranus LawnSite Bronze Member
    from Mass
    Messages: 1,624

    So what am I susposed to do? Sell my gear and make minimum wage.
  10. carcrz

    carcrz LawnSite Silver Member
    Messages: 2,085

    Yes. Sell it all & for cheap too.

    If your customers are looking for better prices, then they either can't afford you or you are doing something wrong.

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