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Discussion in 'Starting a Lawn Care Business' started by Mowin&Coachin, Jul 7, 2006.

  1. Mowin&Coachin

    Mowin&Coachin LawnSite Member
    Messages: 6

    First year in the business and only on a part time basis so my with my few yards I thought I was doing pretty good until just a couple of hours ago. A trio of twenty somethings, with lawn equipment in their trunk, stopped while I was working in someone's yard and struck up a conversation with me. They were very nice but what they told me caused great concern. They said that they were only charging $15/yard and had 50 yards with this being their first year in business and the whole time I'm charging starting out at $25/yard (more if it is a larger lot). $25 seems to be the overall starting rate here in North Dallas but how am I to compete and get more yards if these guys are $10 below me. They seemed to know for the most part what they were talking about and seemed to really want to give the customer satisfaction so I'm not inclined to think they are a flash in the pan. Again, how do you compete with such a low charge. I'm pretty firm on my prices and also pretty frustrated.

    PMLAWN LawnSite Gold Member
    Messages: 3,534

    You are not competing with them -- They service customers that like getting 15 dollar cuts and you provide a service that does 25 and up cuts.
    Just keep doing what you are doing and let them play around with the cheap stuff.
  3. Diablo

    Diablo LawnSite Member
    Messages: 75

    Just do the math, $15 x 50 lawns = $750. Split that three ways and tell me they are making enough to weather the first major expense thats bound to come. Now $25 x 25 lawns = $625. If you do half the lawns these guys do youre making 2 1/2 times what one of these guys is. And we are not even going to get into what is to happen when one of them becomes unhappy with their current situation. If you are charging a fair rate based on current market conditions in your town, keep it. True, business will come faster for these guys but they need it to. They have a three way split going. You will pick up customers over time and they will be the type that you will want to keep. Best of luck, be patient.:usflag:
  4. J&R Landscaping

    J&R Landscaping LawnSite Fanatic
    Messages: 5,095

    Them other guys won't be here next season, thats almost a gurantee! Let them deal with the cheapstake pitas, you deal with people whom are worth dealing with
  5. RonB

    RonB LawnSite Senior Member
    Messages: 427

    you should have asked why they are working so hard in the hot sun for $50 a day, when the guy taking 5 of that 50 to pay for their lunch at McDonalds is likely making more working in AC.
  6. JJLandscapes

    JJLandscapes LawnSite Senior Member
    Messages: 682

    50 houses with 3 guys should take 2 days at most so they making about $100 a day probably

    probably more than they can make at any store after taxes but like everyone said they wont be in business long or if they want to survive they will raise there prices
  7. dKoester

    dKoester LawnSite Gold Member
    Messages: 3,346

    They won't be able to afford any big bills coming their way. And if they break something O my goodness thays goin ta bees in trouble. DON'T WORRY ABOUT IT. Grow your company with higher standards.
  8. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    This is the reason why, as a rule, I don't give other Lco's the time of day.

    They come around me, I usually ask if they don't got better things to do than wasting my time with their bs.
    Perhaps this also answers the question about those Lco's who never wave back, and when approached will give you the brush off.
    Guys like me done had enough of this type of nonsense, that's all they ever want is talk bs.
  9. garth1967

    garth1967 LawnSite Senior Member
    Messages: 640

    good post

    dont panic ,and dont listen to any crap like topsites says .i can only assume that these guys can not possibly survive .if you survive you will naturally obtain these customers any ways but at your price.i do believe in giving the customer a fair price.it goes both ways though the customer has to be willing to be fair to me.get used to the lowballers they are part of business everyday ,they will never go away.

    you were spot on about never moving on your price

  10. Sandgropher

    Sandgropher LawnSite Senior Member
    Messages: 903

    Do not believe any thing you hear and only half of what you see.:dizzy:

    People quote these prices all the time to put the wind up other LCOs, the result is you wonder if its worth it to continue, playing right into there hands, i would not be suprised if they start at $25 a yard to, if not they will not last long and you may get an influx of cust soon, who will have to pay your rate.payup

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