Meet the newest lowballer.....ME!

Discussion in 'Lawn Mowing' started by Liquidfast, Jul 13, 2007.

  1. Liquidfast

    Liquidfast LawnSite Senior Member
    from Ontario
    Messages: 739

    In one of my gas station accounts, I was having an enjoyable conversation pertaining to lawn care. One of the stations I manage happens to have a bed that requires a ton of work. When asked about pricing, I gave the manager a quote and was told to go ahead with the installation of mulch and plantings.

    Going back a bit......every manager complains of how low their budget is and that they cannot afford this and that.

    Ok back to the topic....I was told that our work is so much better and that our pricing is waaaaaaaaaaaay lower than the last guy (of 3 years).

    I receive no less than $100 per cut for 40 min. This does not include beds or hedges as they pay extra. After expenses, I clear $75 an hour.

    This new manager (1st year) pulls out invoices for last year and they were paying $165 per cut.

    This means that EVERY station manager has lied to me and told me that I was one of the highest quotes :hammerhead: :hammerhead:

    I am calling the regional manager tomorrow to discuss a possible increase without mentioning the above info or where it came from.

    ......... I do realize that I agreed to this price but now feel my time would be better spent on bigger things.
  2. Grits

    Grits LawnSite Silver Member
    from Florida
    Messages: 2,994

    Don't you hate when you find out how much they would've spent!!??!!
    I was doing some hauling of limbs and yard debris and quoted $550. Right after I told the lady the price, she said, "Great! Go ahead and schedule it. My husband said he would have spent $750 on it."
    My jaw hit the floor! Oh well, I made money and they were happy. So all was well. Still sucks to know though.
  3. carcrz

    carcrz LawnSite Silver Member
    Messages: 2,085

    I wouldn't go back now & raise their price. You're already making pretty good money per hour, especially if they are giving you several locations. I would however raise it a little bit next year.
  4. BQLC

    BQLC LawnSite Senior Member
    Messages: 574

    If you are making money at the price you gave then you are not low balling IMO
    I would not raise my price if I were you. There prices along with service may be the reason they are no longer there.
    Also One of the previous Managers may have been a real PITA
  5. Guzman Properties

    Guzman Properties LawnSite Senior Member
    Messages: 443

    What if you didn't find out what they were spending?

    Were you happy with what you were making?

    How would you feel if the next guy comes around and low balls you.

    If you have other work that is more profitable then go for it. Just bump it up a bit for the next season and keep them happy as well.

    just my 2 cents....
  6. bodisatvah

    bodisatvah LawnSite Member
    Messages: 18

    i too am a low-baller. i don't want to be, but for now i am. my mowing customers have shared with me that my competitors tell them they are getting a great price...(and great work too!). i want sooooo badly to increase prices now. in fact, i was about to and blame gas prices for it when the price for gas suddenly dropped by 20 cents. my game plan is to increase prices next year.

    i also had a leaf clean-up job for a condo complex. i quoted 300 and i could tell the ladt on the phone nearly fell over. she said i was a go but to wait until friday (a day or two) because she had other quotes coming in. well, i got the job. it took exactly as long as i imagined (half a day) and was able to complete a second mulching job that same day.

    i know i'm low....but i'm learning the business plus gaining market share and getting good referrals. my name is circulating and hopefully my customers will be loyal and accept the meager price increase next year. i'm thinking at least 5 - 7 dollars per account. i'm sure new lowballers will solicit for close to the same price if not lower.

    what am i trying to say? i'm pacified with the money i'm making and excited knowing i can be making more. i guess it's just part of the learning curve. i have lost jobs for over-pricing but that's ok too. growing pains can be tough sometimes.
  7. Liquidfast

    Liquidfast LawnSite Senior Member
    from Ontario
    Messages: 739

    I have a friend who thinks the same way you do. He thinks since he's new, its a learning curve etc. I WAS happy with the price I am getting cuz I know in the winter, their salt bill will render them helpless :canadaflag: (winters...gotta luv em). I will make back (and more) the shortcomings of the summer.

    If you know you are low (as you stated) there isn't a learning curve to contend are just trying to get the job....nothing to be ashamed of.

    At the end of the day, if you are satisfied with your income, what diff. does it make?....really.

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