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Is it low balling or is it smart?

Discussion in 'Lawn Mowing' started by DFW Area Landscaper, Jul 27, 2004.

  1. yard_smart

    yard_smart LawnSite Senior Member
    Messages: 590

    Plain and simple answer . . . .

    There are two basic business models

    one based on price which is directly correlated with High volume

    and one based quality which is directly correlated with low volume

    IF this guy is really charging cheap cheap cheap prices then he has to have a million yards to keep his net profit amount up, its that simple

    I for one would hate to have that business model
  2. T&J Landscaping

    T&J Landscaping LawnSite Member
    Messages: 199

    everyone has bills to pay ,, no one should lie here,, everyone lowed balled and everyone still does ,,why let someone else get the job , for a couple of dollars cheaper,
  3. phlandscaping

    phlandscaping LawnSite Member
    Messages: 92

    Because it's not worth it! I've also looked at lowering rates and only way I can offer this is if atleast 5 people on one street sign up for it! Therefore I figure travel time saved would help make up the difference... I'm thinking I could take a yard which is normally $40 and turn it around to $25. That does kinda sound stupid in a way, but the way the economy is today there are quite a few customers from last year who just can't afford to pay for lawn service! They are good people, but the economy is just taking over their lives. If you have five yards that are all approximately 5 miles apart, then you drive at least 25 miles not including getting to the first! Lowering the trailer gate... unloading, loading... It may be able to be worthwhile, but you need volume!
  4. Two Seasons

    Two Seasons LawnSite Senior Member
    Messages: 791

    Around here, we mow for approx 30 weeks. If you take your example and mow every 7 days that is 30 mows x $15 per mow(the diff between 40 and 25) = $450. Now lets say the customer actually does some maintenance on his mower and has his blades sharpened and balanced twice a season $9 x 2 = $18. Lets say he mows the same schedule---30 mows per season. And lets say he uses 1/3 of a gallon of fuel per mow $1.45 x 30 = $43.50 Factor in his initial cost of mower that will last 5 years tops $200 / 5yrs = $40 per season. Customer is now looking at $18 + $43.5 + $40 = $101.5 per season. If you deduct the original $450 savings from $ 101.5 you have $348. Do you know how much gas the customer buys with $348? About 5 weeks worth of fuel for his car, not even factoring in the wife's/husband's car. And the childrens cars too, one of them who at least should be helping with the mowing. $348 / 30mows = less than $12 per week. And I'll bet it takes him/her an hour to mow it!

    You get my drift, right? Sell them on your services and his/her free time!
  5. yard_smart

    yard_smart LawnSite Senior Member
    Messages: 590

    Amen Brother!!!!!!!

    Mam let me take care of your yard while you take lil johnny out to the park for the day!!!

    Same logic i use for power washing!!!
  6. FL-Prospector

    FL-Prospector LawnSite Member
    Messages: 3

    Anyone know if Mike and/or TJ are still around here? I'd love to ask them some questions but I can't send a PM and don't have an e-mail or anything...

    If you guys are around, any chance you could e-mail me at ukce1861@gmail.com?

  7. willretire@40

    willretire@40 LawnSite Bronze Member
    from VA
    Messages: 1,389

  8. dura to the max

    dura to the max LawnSite Silver Member
    from georgia
    Messages: 2,246

    get 10 posts and you will be allowed to pm.
  9. T&J Landscaping

    T&J Landscaping LawnSite Member
    Messages: 199

    hi fl,, i'm still around, ask questions away
  10. jbannick18

    jbannick18 LawnSite Senior Member
    Messages: 490

    To the OP, that duck looks like he's smoked some cannabis lol

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