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sell to other LCO's?

Discussion in 'Business Operations' started by lawnboy82, Sep 24, 2001.

  1. lawnboy82

    lawnboy82 Banned
    Messages: 957

    Hey guys, I am currently in the process of buying a product that nobody else in my area owns. The only people who do own them is the golf courses and the town I live in has one for the parks dept. So what I wanted to ask is; how do i sell a service to other landscapers, and yet not have them decide that is such a great idea, I am going to go and buy one for myself?
    The product I am referring to is an aeravator.
  2. Guido

    Guido LawnSite Silver Member
    Messages: 2,087

    You can only hope that they're not smart enough or don't see the need (or have it) of owning one themselves. If they don't have a large enough need for one, and your pricing seems fair to them, then they probobly won't look much farther.

    If they do see a need for it, all they have to do is go buy one, its not like they won't be able to find one.

    One little tip is not to sit there and talk up the machine with them.

    Don't say "Man I'm swamped with work for this machine, its the best thing in the world".

    Other than that, fair pricing is going to be the key because remember that they will be adding a certain % mark-up to your bid before it goes to the customer. Soooooo, if he doesn't get the work, that means you don't get the work.

    Hope this helps!
  3. lawnboy82

    lawnboy82 Banned
    Messages: 957

    Now here is my other Q Dave; when selling to other LCO's I am assuming that I should lower my price a bit? But not so much as to where I don't make a profit. I was hoping to get about $25 - $30 per M sq ft. Seeing as how there is no competition as of yet in the area. That is the price I want for selling to residentials, for just the aeravation (no seeding) Then I was thinkin about somewhere in the $50 - $60 range for aeravation w/seeding & starter fert. So if I take let's say $5 off per M sq ft, is that right? Or should I stick to my residential guns?
  4. Guido

    Guido LawnSite Silver Member
    Messages: 2,087

    or what it can handle. I know your into tree work, so let me relate it to that for you.

    Say there was an old dead tree in Mrs. Smith's front yard and you would walk up to her door and quote her a price of $500.00.

    Well, I am also at Mrs Smith's house working (Guido's excavation and landscape construction, Inc. :) ) putting in a driveway. This is before you knew Mrs. Smith even had a tree. I need a tree taken out because its where the proposed driveway is going to be. Well I have a huge labor burden right now because of the big mall parking lot I'm putting in, and don't have the manpower to cut the tree down. So, I decide I'm going to sub it out to Lawnboy 82 tree service & co. Now, instead of having to advertise to Mrs. Smith, make the sale, do the customer relations thing during the job, bill the client, and wait for her to pay (hopefully on time), etc, etc, etc.... You just have to cut down the tree and I'll pay you. No B.S. No wasted time.

    Would you quote me the same $500.00 or would you quote me a lesser price?

    If you answer this question, you answered your original question. Should be the same thing.

    I would think if you subbed out work to a company, you would expect a lesser price than they would give a customer.

    The difference in price is basically time the contractor (the one who actually is performing the work) saves not having to worry about customer relations.

    Good Luck, hope this helps. Make sure you follow up here and let us know what you figured out.

    BTW......you must have got rid of your employees or changed something (plus I think going back to college had something to do with it) because it seems you've grown up and smartened up alot. Definetly see a positive change.

    Plus no more wacky story's about your worker's uncle's brother in law!! :)

    Anyway, glad I can be of help!!
  5. lawnboy82

    lawnboy82 Banned
    Messages: 957

    Thanx Dave, now the issue is, how much to reduce the price by. I think goin down somewhere about $5 per M is good, unless there is a lot of work, in which case price can go down a little more.
  6. lawnboy82

    lawnboy82 Banned
    Messages: 957

    Oh, and Dave, I think the change is because of reduced stress. From as you said, not having to be at home, and from not having employees to worry about, etc.
  7. Guido

    Guido LawnSite Silver Member
    Messages: 2,087

    Charge what you can get and make a decent profit for yourself, just consider in the saved time of dealing with the customers.

    Then, the price direct to a homeowner would be more than you would charge the contractor.

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