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Season of cheapskates

3K views 25 replies 19 participants last post by  John Allin 
#1 ·
I don't know if it's just my area, but this year I am getting turned down left and right for work because of price. I've been getting a lot of inquiries about lawns, mulching, pruning etc., and when I give the price they don't go for it. Later I see some neighborhood kid doing the work instead! I'm giving out fair prices (sometimes too fair) and they still won't go for it. I'm sticking by the prices though, I'm not getting caught in the discount cycle. I thought maybe because of our current economic state, people might be tighter with the $$$. Anybody else getting this? :confused:
 
#2 ·
Hey Brian.. it is a little different for me this year... I am getting jobs with pricing that I would have never thought about asking. I just wish I could get out to drop more flyers/mailers. My problem is I am not getting grass cutting calls, I am getting mulch, bed install/renovation calls.

Good Luck!!

jf
 
#3 ·
I'm kinda running into that problem too brian, seems like they all think $26 is way to much and that they'll get some kid to do it, wasn't like that earlier this year, I just got back from giving an estimate to a woman who told me $30 bucks a week is to much just for a mow and trim and edgeing..... But she had a brand new infinity Q45 parked in the garage, still had the dealer plate on it, I just don't know sometimes...... But I won't come down in price, It just not smart to give the work away.... Jessus, These folks can see that I have a $5000 dollar mower in the back of the truck and $350 dollar trimmers, and I do nice work I'm in and our of thier yard in no time, you would think that it was worth $30.00 bucks?
 
#4 ·
Sounds like improved salesmanship is in order.

If you cannot convince a potential customer that your services are in their best interest, even if the price is more, then it time to invest in selling.

You'll always have low dollar guys, you can't beat their price, but you can beat their service and customer confidence.
 
#5 ·
The lady with the Infiniti,saying it was too much. Places where you have left bids and now see a HS kid doing the work.
THEY GET WHAT THEY PAY FOR!!
Like mentioned you have to SELL yourself first. Explain why you charge what you charge. Why they need YOUR service vs. the kid two doors down.
It'll take awhile but you'll get there. :D
 
#6 ·
I had one like that today, The guy had a 3/4 acre lawn told me to mow and give the price to his wife who was home, I mowed trimmed, edged blew clippings off walks and went up to the front door to give the weekly price of 50.00, The lady of the house asked for the weekly rate and stated that last years lawn guy did it for 126.00 per month and then said she would have to run this one in front of her husband, My Question is where is the previous lawn service, Did they work themselves out of business due to low balling?:D
 
#7 ·
Do people use house cleaning help in your areas. If so how much do they pay.

In my area people pay big dollars for house cleaning and complain about grass mowing too. It's really warped thinking. (maybe)

Kids used to cut lawns for a few bucks but they never cleaned houses for a few bicks. People always payed more for domestic help.
 
#8 ·
Hard to pay for lawn service when Lexus Payments or Infinity Payments are coming out of your $60K salary which = 40K after taxes.

They think they are rich when they hit $69K so they go spend a year's pay on a stupid car that depreciates like a rock.

Don't worry dude your service is worth $30. Infinity Gal is BROKE! Our minimum is $35.00 for any lawn cutting no matter how small.

Ken
 
#9 ·
I run into this sometimes too.

Usually the ol' "well, if the kid down the street doesn't have insurance YOU are responsible if he cuts his leg off or dings your Lexus" story does the trick. :D

It's mostly about selling yourself and your prices.
 
#12 ·
I have only had one customer go with a friend to cut her lawn this year. The lady is an old widow and I am sure she can afford to pay me but she is saving 100+ a month by having a friend do her lawn. I still do cleanups and dethatches.

I got my price on all the new work I picked up this year. 4 new jobs isn't much to most guys here but they are a combined 4 acres and it will generate over 250+ per week for me which aint bad.

There are always gonna be the price shoppers. I let the lowballers have them and smile when I see them. This type of customer usually has a rotten lawn to start with. I have gotten rid of most of my dead wood accounts.
 
#13 ·
TJLC -- I couldn't agree more! Here in Florida, we see the lowballers! But we are quoting higher this year and getting the jobs because they are usually neighbors who have seen our work. When they say, "My neighbor is only paying $$$, we tell them that this is a new year, new prices, higher maintenance costs and their lawn has more weedeating and work (which it always does)." They get us, we do the job, they are happy and willing to pay it! The lowballers aren't staying in business too long here and/or are learning that when August comes around and you are sweating 10 lbs. off in one day, it isn't worth doing the lawns for so little. So, we smile at the scrubs and lowballers too. Our lawns look fresh and clean when we're done and we can do them quick. You can go into a neighborhood and tell which lawns we do. We've never lost a lawn to a lowballer (Thank God), because we're reliable -- there on time -- and do quality work. It's fun to laugh the lowballers off. We do get upset at the ones we know of (supposedly friends) who are out there mowing with no license, insurance and don't pay taxes. But they won't keep up with it for long either. These are usually the customers WE get when the lowballers and scrubs quit and they are looking for a quality, reliable lawn service.

There are lots of reliable lawn services out there too and we respect them. When we have a customer call and we know a reputable service has had them, we ask why they let them go? This is important, because we don't want to make the same mistakes or we price so high because we see a problem customer. They either take us at the high price or they don't take us at all... and that is okay. We don't need any more problems!

We only raised our rates for one customer in our area this year. We are doing more for his lawn maintenance and that is the reason. We think it is bad timing for our area (drought) to raise prices right now. But when bidding on new jobs, we are making them a little higher.

I think people are going to try to get away with what they can... We give people a quote with our price on it... no negotiations. One lady tried to lower her price by $5.00/month. Her place is hard to do and she only wants summer mowing. We don't really want the lawn anyway. Refused to negotiate and she got some other poor smuck to do her hellacious yard.

We just post our experiences with these type of things and hope that they help others. Its hard to give advice to others in different areas when we don't know exactly what you have to deal with everyday. So, we hope the best for you and hope you get some good customers who will pay you what you are worth!!!
 
#14 ·
The low price guy will always be around. And as Kent Lawn said - you can't compete with them on price, you can only educate you customer to the benefits of your service.

From this I offer two suggestions. First - read Tom Stanley's book, The Millionaire Next Door. It helped me to redefine who my target market was in our area. I couldn't figure out all the price resistance I was getting when I knew I wasn't the most expensive when going after the "big houses" with fancy cars in the garage. Their mortages, car payments, tuition in private schools, country clubs and fancy dinners out to keep up with the Jones's was eating them alive. They are spending their disposable income and then some on the trappings of life. I lowered my sights and found customers who were banking their dollars in smaller homes, smaller cars, etc.

Secondly, regarding selling - if anyone is near Cleveland and can make the trip, once or twice a year COSE through the Greater Cleveland Growth Association offers a "Dynamic Selling Course" taught by Hal Becker. Great class. He may do other seminars in other cities. Hal Becker has several books out, one of them being "Can I have five minutes of your time". Good book. Great speaker/teacher.

Marvin Montgomery is another guy who has taught sales classes/seminars through COSE. There are others out there. Take the classes. They offer great information and training as to how to sell to the customer, overcome objections and close the deal.
 
#15 ·
Well, I have a good sales approach.....I spent ten years as a professional salesman in the paint industry selling some of the most expensive stuff on the market so I have had plenty of training.... I need to work more on Identifing customers who really want service and are willing to pay for it versus those that are just looking to see what it cost, So basicly more phone time with potential customers... Seems like they want me to do the grunt work, but not the regular maintenance like mowing, and I'm not set up to do that.. I make more money mowing a mess of yards versus spending a day on one yard.
 
#16 ·
The problem I have with selling the job is that I never get a chance to actually sell it. People ask for the bid, are usually not home, and I leave a professional estimate at the house. The next day I drive back over to see if the person is home and the work is either already done or being done by the kid up street! I think these people must have already had things set up, and are just wasting my time to give them an estimate so they can feel good about the low price they are paying someone else? :angry:
 
#17 ·
I'm sorry, I lied! We DID get lowballed this year by a so-called friend who bought a Crapsman. He is the one who is doing the two summer jobs in the mobile home park that were nasty lawns anyway. I said we've never lost a customer to a lowballer, but we did. We have been underbid by them too! But we haven't lost any of our larger accounts outside the mobile home park where our "friend" lives. I was thinking 'bout this today, while I was mowing, and didn't want to give the impression that we tell fairy tales!
 
#18 ·
The first thing I tell phone prospects is that all I do are "yearly" agreements/contracts. If they are just fishing you'll know right away. I try to pre-qualify them,so to speak. I ask a lot of questions.
If they want a year-round agreement I'll go to the property. You can tell as soon as you get there if they will be "good" for your business. I try to stick with the "working" households. They just don't have the time anymore to keep up with the yard. I have some residentials that I have been servicing for 10 plus years. Middle income,both spouses work. Never ever had to fight to get paid. The high-income,white collar properties have given me nothing but headaches.
 
#21 ·
Regarding the previous reply to this post that I submitted. The guy whos wife stated that they were only paying 126.00 per month to mow 3/4 acre weekly called me and asked if I could put them on my schedule, I asked why they didnt they go with the previous guy, I was told that he was in jail due to the fact that he took everybodys money and booked, I guess it doesnt pay to be a lowballer or a cheapskate
 
#23 ·
THis is the worst year in my area period-- People are lucky to get work here. Unfortunately alot of calls lately have been the old catch up my lawn that the lawn owner has not mowed yet- with the added con of no promise of future work. The economy in this area is at its lowest. Hope it improves for everyone. Keep smilin' and don't let them get you down. Good luck
 
#24 ·
I still can't figure out why these guys feel they have to bid so low. Try to talk to them and they think you're trying to steal their trade secrets.
A lady didn't come back this year (the old fixed income story) because she's now paying $18 every two weeks on a lawn I did for $30 per week. Now how hard is it going to be for any LCO to get a fair price from her in the future-you know she will have $18 on the brain.
Anyway-
At the same time I'm bidding lawn $5-10 higher than last year and getting my share.
 
#25 ·
I feel for the guys that aren't getting enough work. It wasn't that long ago when I was in those shoes, and I haven't forgotten. Every year for the last several I have had more than enough work. I have my name out all over town and the phone rings off the hook. I have turned down an unbelievable amount of work this year already. In fact it is so bad that when the phone rings if the number isn't one I recognize, then I don't anwser. About half of the callers will leave a message. That helps a little, in that I don't have to take time to call them back and tell them I don't have time to help them.
 
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