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price

bobbylawn

LawnSite Member
Location
Navarre,FL
I was asked by one of my residential customers ,if I would charge less money for the same quality service that I offer. It turns out? someone gave them a offer that was $60 less than I charge on a monthy basis. I can't se how anyone can do it that cheap and still make money.This is my 2nd year in the business, and I will not offer a service & not be compensated accordingly to the prices that I have set for myself, that it competitive with the market that i'm in. Can I expect this sort of thing to happin ? On a regular basis, are is this a one time thing. Has anyone of you guys or gals experience a simular situations, if so what did you do.
 

Lazer

LawnSite Bronze Member
It's a competitive business.<p>It's not rocket science caring for lawns. Pesticide applications &quot;weed out&quot; some of the competition, (like the pun?) but there's still plenty of competition in most makets.<p>Always seek for ways to be competitive, but never comprimise your price. In our area about 20% of the contractors are in their first year or last year of business. Some of them, because of low prices, are in their first AND last year.<p>Price will come up every now and again, but stick to your guns.<br>
 
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bobbylawn

LawnSite Member
Location
Navarre,FL
I have a 52in lazer & 36in dixon wb. And i offer a full service lawncare service. The things I can't perform I have someone with the lincense to do the jobs.
 
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bobbylawn

LawnSite Member
Location
Navarre,FL
Hey! Lazer by your name I know what mower your using,good choice I love mine. But how long have you been in the biz? and how would you handle this.
 

Retro67

Banned
Location
Springfield, IL
I agree, with residential, my price is my price. I might slightly adjust a large accounts price or bid, but there are too many homeowners to work for less than you deserve. I generally gross a dollar a minute on residential, but it all depends on how productive you are. <p>I'd graciously decline to reduce the price and explain that the quality of care you provide costs you and your competition both the same to perform. Explain to them that Company B may not be around to give them the quality of service you provide after they go out of business due to low profit margin. <p>Hope this helps, and that you can salvage the account without compromising your bottom line. Otherwise, you may have to figure out how to do it faster, so you still make the same amount hourly.<p>John
 
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bobbylawn

LawnSite Member
Location
Navarre,FL
Before I got my lazer z it was taking me about an hour & a half with my 36in dixon. Now my lazer only takes me about 40 min. And that includes trimming and blowing.
 

HOMER

LawnSite Gold Member
I have been there, done that. I bid on a small church site for a yearly deal, my bid was 190.00 per month which was low to begin with, but it was a small church. I lost it to some nut that said he would do it for $60.00 per month and cut it every week. Needless to say he got it and could have it for that price. I haven't gone back after that business.<p>Homer
 

Retro67

Banned
Location
Springfield, IL
If you are talking about $60 a month off just mowing, I'd say someone doesn't know what they are doing. They must be bidding it for ~$100 per month? If that's the case, I'd let them have it. Advise the customer against it, but some people are concerned with price only. <p>Don't take it personally if they decide to go with the cheapo bid. Give them a card or flyer and advise them that if things don't work out with their new service, you would be happy to provide the same quality service you always have, with no increase in your previous price. At least then they can't say you were unfair with them.<p>John
 

MWHC

LawnSite Senior Member
Location
Wyoming
I have had home owners tell me &quot;I cant believe your price, the last guy did it for $xx.xx) These people go to WalMart and see a mower for $199.00 and think that is all you have invested in your business. The average homeowner has no idea of the money we put into these busines's just to keep them running.<p>Try a few things that will set you apart from the guy that loads a mower in his El-camino and calls it a lawn company.<p>Get certified to apply pesticides. Take classes in turfgrass management. This greatly improves your knowlege on the subject, makes you look more professional, sets you apart from the weekend guys, and LETS YOU FEEL WORTHY OF WHAT YOU CHARGE! <p>Just my opinion, don't short yourself. If you are like most business', you are there to make a profit. If you are good at what you do, people will see that. Customers will come :)
 
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