I have been accused of Lowballing, what do you say?

Discussion in 'Lawn Mowing' started by J Hisch, Jan 3, 2006.

  1. J Hisch

    J Hisch LawnSite Senior Member
    Messages: 952

    We added a new part to our company. We call it budget mowing, its for brand new areas with little or no trees, lots are 5-6k in size we advertised only in these certain areas for 18.95weekly this excludes corner lots or fenced yards, they depend on size, a fenced lot is 22.00 corner lot is 32.00. Got a few call from competitor this past season said I was lowballing. With this crew I send out 48inch Scag and push mowers, you can literally knock out 5-7 yards a hr with a 2 man crew. We offer 10 month flex pay for these accounts they pay 53.06 for ten months to have their lawn serviced, we do charge a dollar more if they do the flex pay. Our margins are higher in some cases them the commercial side becasue of drive time. 6 yard a hour average that crew is making 113.70 per hour I can lclear that on some commercial work but on other I come now where near hitting those margins. I see the way it could be deemed as lowballing, but our density along with the flex pay option people are siging up like hot cakes. what do you all think?
  2. Jpocket

    Jpocket LawnSite Silver Member
    Messages: 2,281

    it sounds like a good idea, something I would consider. I would probably never do it for fear of making some of the other big boys angry. The last thing I would want is the guys who are twice the size of my company angry.
  3. pjslawncare/landscap

    pjslawncare/landscap LawnSite Bronze Member
    Messages: 1,410

    Who cares what the competition says, you are running your business, not them. If it works for you, more power to ya. Sounds like a good idea though. Hope all works well

    JKOOPERS LawnSite Bronze Member
    Messages: 1,259

    it really depends on what kind of profit you want to make . the other hand that is why they call it competition. right? look at ups and fed ex for an example .
  5. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Messages: 8,745

    I feel whatever you can do to get business is perfectly fine. It's called business. If the competition is losing customers because you are charging cheaper, then perhaps the competition needs to look at other ways in marketing. The competition may be upset that they never thought of something like that sooner.
  6. procut

    procut LawnSite Bronze Member
    Messages: 1,852

    Here is a hypothetical example:

    Company 1 charges $35.00/visit and clears 21.00 all said and done

    Company 2 charges $30.00/vist, but because of low overhead, and being more efficient, they still clear 21.00.

    Since they are both netting the same amount, is company B really lowballing? The point I'm trying to make is that do what you have to, and as long as your still making a decent profit, you have nothing to ashamed of.

    TURF DOCTOR LawnSite Silver Member
    Messages: 2,138

    Talk is cheap,are you making a profit.
  8. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Messages: 4,771

    This is a question only you can answer. If you are comfortable with your figures?

    M RASCOE&SONS LawnSite Bronze Member
    Messages: 1,475

    I Think If You Do A Good Job And Can Survive On Those Numbers Than Good For You But If You Advertise That Price Your Gonna P@#$ Every Lco In Your Area Off.ask Yourself This Would You Rather Have To Do Three To Four Times The Lawns Just To Make It(more Lawns More Fuel More Helpers And Half The Pay On Top Of That Whats Wrong With Tis Picture) ??not Me And I Sleep Good At Night Knowing Im A Good Businessman Who Makes Good Decissions .good Luck
  10. P & L Turf

    P & L Turf LawnSite Senior Member
    Messages: 272

    Who cares what the competition says, It's your company. They're just jealous that they didn't think of this first. :) Let them find their own way to get easy money.:cool:

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