Loss Leaders

Discussion in 'Business Operations' started by Team Gopher, Nov 17, 2003.

  1. Terrell56

    Terrell56 LawnSite Member
    Messages: 7

    I sometimes use the strategy; "get the job first" and "don't lose money".

    I then pick my spots on when to charge 'Normal rates' and when to charge 'competitive rates'.

    Once your foot is in the door, 'what the market will bear prices' also come along on a frequent basis, but by then you already have their ear, and what you say, is how they usually go.

    As an example, if they have a dead oak tree that needs removal, and you know they are shopping prices, I'll give a between "this and that" cost estimate with the first number being low, & the caveat that depending on value added services: stump grinding or disposal costs etc. are to be added in w/ final estimate.

    Then I'd ask where the other numbers (competition) are cominmg in at and call their bluff and suggest they take a low-ballers quote.

    My earlier caveat comes into play if they left other stuff out, and then I come in with a 'complete cost' which mirrors my rates.

    Switch & bait? Loss leaders? Doesn't everybody have their negotiating techniques? The buyers sure do.

    Be honest.

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