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Lowballer or ?

Discussion in 'Lawn Mowing' started by rixtag, Dec 4, 2001.


    AVRECON LawnSite Senior Member
    Messages: 290

    Not very large, more parking lot than anything. My question is how can you buy all this new eqpuipment and trucks and charge these prices? Also they have to put out pine straw and sesonal flowers for the same fee per month, they only charge more for materials. To me stopping for anything less than $35.00 per visit just doesn't make sense espcially(sp) when you have the other things to do yr. round. Hell, by the time you pay taxes and employee's and upkeep, wheres your profit? I just don't understand, unless its getting all the work you can for less than anybody else is going to charge. And their work looks very good, also they wear co. shirts and drive new trucks and new equipment. I don't have new equipment and new trucks and there is no way I could make it charging those rates and I'm a solo operator.
  2. Samurai WeedWacker

    Samurai WeedWacker LawnSite Member
    Messages: 93

    $225 divided by 4 is $56 and change. I'd go for that deal at any bank in this town. My minimum is $20 per man-hour. I'd probably be getting close to $30 per man-hour at banks here in Laramie WY.

    AVRECON LawnSite Senior Member
    Messages: 290

    Divide that $56 by 2 and you get $28 per bank branch per visit.
    2 banks one price $225 per month for both. Not $225 for each branch, but for both branches.
  4. rixtag

    rixtag LawnSite Senior Member
    from Lehi Ut
    Messages: 280

    I am starting to see what this means to everyone.

    If I understand right, generally speaking, a lowballer is someone who intentionally tries to cut the price sooo low to get the job without, and here's the key word: RESPECT.

    Is that right? I have a pretty good idea that this is the core of the problem. If I can maintain the margin to which I am accustomed and assuming I run a legitimate business( insurance, taxes etc) then if my overhead is lower and I get the job for 20% less and do a great job then I am not a lowballer. Right? I am not trying to offend anyone, just trying to understand.

    Lawrence, what happened to the "X"? LOL I agree with you on your points. Impression is important but not paramount to getting the job.

    Bill Craig, TGC, I am all over it. New thread in the business forum. I am getting close to having mine all in line but it is frustrating when asking these questions and being told to search. I will not search. I want a live discussion.

    Thanks everyone for your participation on this topic.

  5. Michael Fronczak

    Michael Fronczak LawnSite Member
    Messages: 230

    Around here the biggest problem I've had (in commercial bidding situtations) is one of the top three national co's. I know my overhead is lower than theirs (I used to work there), going to run numbers this winter to be more competive for next year, still had an exceptional year even without that work I didn't get. As for lowballers yes there out there, but as a professional you shouldn't have to worry about them, people know they get what they pay for. Saw an add today for snowplowing "most drives $ 10.00 includes shoveling walks & salting" wonder if he has insurance? There will always be people that buy on price only, they aren't the customers I want.
  6. casey

    casey Guest
    Messages: 0

    On our small props their is no way an LCO running belt drives can complete a job as fast as an LCO running hydros. Production of unit must also be taken into consideration. Initial unit cost should not reflect higher prices if mowing production is vastly increased.
  7. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Messages: 1,415

    Looks like they might be doing something right.

    How do you know the figures for that service that they are performing? If they are only staying at each prop. for 10 min (with 3 guys) then the price comes out pretty good. This also depends on the locations of the properties before and after each of the banks (drive time).

    10 min at $28 is $56 per man hour (does not include drive time).
    I would think getting $35 per man hr is pretty good in your area and there is plenty of room for drive time. 15 min will be ok as well (depending on route).

    AVRECON LawnSite Senior Member
    Messages: 290

    I know how much because a friend used to do it and has inside info as to how much this lco bid on it.
  9. No you want to charge 80-90% of the guy with the new Walker so you price is more "attractive".
  10. dj'slawnservice

    dj'slawnservice LawnSite Member
    Messages: 28

    LonestarLawn nailed it......lowballers knowlingly underbid you to take your accounts !
    I second the motion that Craig Turf Management made !!

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