No ones a Lowballer

Discussion in 'Lawn Mowing' started by smallstripesnc, Feb 4, 2013.

  1. 32vld

    32vld LawnSite Gold Member
    Messages: 3,983

    It is called leaving money on the table.

    If every one else is getting $50 a lawn and you want to do it $35 because you think you have no overhead.

    You have just ruined the market for your area.

    You are now losing $15 on that job. Yes losing $15 dollars because you chose to leave money on the table.

    You think you have no overhead. Until you have an accident, get sued and not have business liab. insurance.

    No overhead because you are not setting aside money to buy replacement equipment, or new equipment trucks to expand.
  2. newguy123

    newguy123 LawnSite Bronze Member
    Messages: 1,096

    Okay I just finished reading all the posts...anyways, remember

    He starts his lawns at $23, granted they're probably 5k sq ft of grass, however, this guy would probably be deemed by many on LawnSite as a lowballer.

    Yes he charges low prices, generally speaking; but I'm not sure he could be called a low baller. In 2005, he had over 2K properties. He's probably doubled or tripled since then.

    The point all of this is...are there low ballers? Sure, but even if your price for a lawn is below that 20% market differential, doesn't mean you're a low baller, etc. Again, was called a low baller, etc. and yet he probably kicks everyone's butt on LawnSite...

    My 2 cents.
  3. hi_speedreed

    hi_speedreed LawnSite Senior Member
    Messages: 534

    This is an important point. Any company that cries about lowballers has very little understanding of a free market economy. Lowballers fill a void. Lets say you would never drop the gate for less than $45. There are people who will flat out say they will never pay more than $25 for their lawn to be cut. If you won't cut for less than $45 these people would never be your customers. You have disqualified them and created a void in the market. Smart business people see voids in the market and fill them. I am not saying all owners that you would consider a lowballer are smart business people. I am saying free markets are driven by the consumer not the owners of business.

    Consumers dictate the cost of materials and services by controlling demand. If you are in high demand, your price goes up. Eventually people just stop purchasing at the high price. This creates a low price void that is primed for someone to come in and charge a lower price and take all customers that want service at the lower price. As the market gets flooded with people who charge a low price demand lessens. You can get anybody to do something for cheap. So businesses dissolve due to lack of revenue. After enough dissolve, demand rises and the cycle repeats itself.
  4. Darryl G

    Darryl G Inactive
    Messages: 9,500

    Yeah, $23 to mow a lawn that meets about 100 conditions with a max growth of 2 inches. That's called a lure.
  5. newguy123

    newguy123 LawnSite Bronze Member
    Messages: 1,096

    Yeah...maybe. But with over 5K weekly mowing customers it works.

    Messages: 188

    with 2wd s10s, 21" push mowers, it kinda works.

    The majority of us use big mowers, big trailers and big trucks. So we can do big work. This leads to big bills, big repairs, and big money.
  7. newguy123

    newguy123 LawnSite Bronze Member
    Messages: 1,096

    You're absolutely right...the key to was, as you stated, 2wd, 4-cylinder trucks.
  8. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Messages: 2,763

    Hiring labor from another country doesn't hurt either ;)
  9. newguy123

    newguy123 LawnSite Bronze Member
    Messages: 1,096

    Yeah...he did state that his employees were very well paid. They were paid on piece work, but the guy driving averaged $16/hr and the helpers $12/hr or more. That's a lot more than a lot of companies in my area pay their employees.

    Messages: 188

    Did you talk to the workers? I mean do you speak spanish.

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