How to compete with a SERIOUS low baller

Discussion in 'Business Operations' started by georgialawn88, Dec 13, 2013.

  1. georgialawn88

    georgialawn88 LawnSite Bronze Member
    Messages: 1,075

    Im sure everyone has this issue in their area. Just thoughts on how you deal with it? im guessing you just put your head down and keep grinding offering good work. I have a lawn company that has 5,000 accounts in my area. They started about 6 yrs ago. Where my area gets about say 65.00 for 10k sq ft hes doing 10k for 45.00! Insame. this is weed control and fert. He has plenty of trucks running and I know hes not a dumb guy obviously or he couldn't be running that many trucks. But theres no way hes making very much money. Atleast I don't see how. Anyway what do you do when you have someone undercutting the industry? keep losing customers to them due to prices. Cant blame the customer they will save 25-30 bucks an app. Its most certainly aggravating for everyone around here. cant beat him join him? I just cant do that to the rest of the guys around here and its a buncha headache for very small profit margin
  2. Vecchio Lawn Care

    Vecchio Lawn Care LawnSite Senior Member
    Messages: 905

    If he is making enough money to be successful there's not much you can do. He might be getting material cheaper than you, or have less overhead but never lower your prices to the point where you are working for nothing. Give the guy a year or two, he probably will be out of business unless like I said, can make a good profit charging under you.

    Messages: 1,343

    Focus on you.
    Quality and service will outweigh a lower price many times.
    Posted via Mobile Device
  4. jc1

    jc1 LawnSite Bronze Member
    Messages: 1,961

    That's $225 k per round
    Even with payroll and materials he is making money.
    If he nets $5 per app that's $25k
  5. NatesLawnCareLLC

    NatesLawnCareLLC LawnSite Member
    from Iowa
    Messages: 89

    Yeah it's all about volume. That company may be getting more accounts, but they may also be doing more work for the same amount cash you are bringing in. I would say stick to your business plan build slowly, and keep and RETAIN business. That is my key to growth.
  6. inzane

    inzane LawnSite Silver Member
    Messages: 2,475

    what i do now.. is just keep on keeping on. :drinkup:

  7. Vecchio Lawn Care

    Vecchio Lawn Care LawnSite Senior Member
    Messages: 905

    In the business world out generation is considered to be the relationship era. It costs more to get a customer than it does to give incentives to customers to stay with you. Maybe offer deals that seem like a great deal for your customers. Maybe every 5th app is half price? Or something along those lines.
  8. inzane

    inzane LawnSite Silver Member
    Messages: 2,475

    Mabee throw in crack and crevice weed control, or fire ant spot treatments? I did that with mowing and it was worth my while.

  9. georgialawn88

    georgialawn88 LawnSite Bronze Member
    Messages: 1,075

    this is true. He does 8 rounds so I guess 200k a year isn't bad. I just cant do that. I do know when he was first starting out giving these prices he had to go live with his parents because he wasn't making $$$ Obviously hes doing better now.
  10. whiffyspark

    whiffyspark LawnSite Fanatic
    Messages: 6,220

    He probably nets about a half a million. Volume is the name of the game
    Posted via Mobile Device

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