Smart Approach???????

Discussion in 'Lawn Mowing' started by Tn Lawn Man, Mar 31, 2005.

  1. Tn Lawn Man

    Tn Lawn Man LawnSite Senior Member
    Messages: 479

    A fella I know has started his own LCO with a different approach. It goes like this...

    1. Find out what the going rate is for an area...beat it by at least 10%.
    - His thought - by doing this, all the customers in a small area will want him instead of the competition and by cutting winshield time down to nothing it is the same as cutting lawns at the going rate with a spread out route.

    2. Once the customer signs up he surprises them by giving them the first cut for free.
    - His thought - Keep the customer happy with surprises

    3. Refer another client and he will lower your regular cutting price. (example: your normal rate is $55 per cut and now it will be $45 per cut) Or, if it already lowered you get a free cut.
    - His thought - Keep over head low. Advertising costs money money money. If you get the customers advertising for you it is always cheaper than paying for formal advertising such as newspaper, yellow pages etc...

    4. Mowing Only (mow trim and blow)
    - His thought - landscaping being lucrative is a myth. You can make better money with your butt in a seat than breaking your back with a shovel. And giving estimates all the time is a waste of time and money.

    Current Results - He just started this year and the phone is ringing off the hook.

    Financial Results - won't know till end of year.

    What is your prediction???
  2. LawnScapers of Dayton

    LawnScapers of Dayton LawnSite Silver Member
    Male, from Dayton, OH
    Messages: 2,572

    how is this fella getting the initial customers......
  3. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    I'm skeptical at best...and I have been at this full time for 11 years now with employees. First cut free, why?
  4. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    You can make $$$ from mowing only...but the big $$$ is the premium services like fert and aerating. Period
  5. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    Prediction? He'll change his mind and eventually charge more than the competition with attention to detail.
  6. grassmanvt

    grassmanvt LawnSite Senior Member
    Messages: 906

    this reminds me of an old story often told around here, a guy brings his truck to canada to get a load of hay, he gets it for a $1 a bale and sells it for a $1 a bale around here, finally, he realizes to meke any money he's gonna have to buy a bigger truck. I think you get my drift. Don't get me wrong, I'm not against maybe one deal, discount, or gimmick but at this rate of thinking, if someone refers 5 lawns they get their's done for free for the season.Guess he'll need a bigger crew, then it will be profitable!!!
  7. the scaper

    the scaper LawnSite Senior Member
    Messages: 690

    I predict he's gonna have a lot of work for less than the going rate, and all those freebies are gonna start hitting him in the pocket very shortly. The only thing I give for free is a flyer or biz card.
  8. Randy Scott

    Randy Scott LawnSite Bronze Member
    Messages: 1,915

    WOW, what a genius!

    Does he think he's the only guy out there low-balling?

    Keep surprising customers with "free" work. That should help him spiral into bankruptcy sooner than later.

    Keep lowering prices for customers, because there's already so much profit in mowing.

    Maybe he should try landscaping, and doing good work. Maybe then he'd know the difference in profit margins.

    This guy is just another gungho individual who thinks he's got the answer. No worry, he'll soon find out what gives.

    All he has done so far to get work is to give his time away. Time and money he won't get back.

    I get a kick how all these new guys think they have some grand plan to spank the market and the competition. More power to him. He'll wake up. If not, he'll be gone like the other 8 out of 10 newbies.
  9. Mdirrigation

    Mdirrigation LawnSite Gold Member
    Messages: 3,793

    Premature burn out , 1 to 2 years until he realizes he has created a job rather than a business
  10. Tn Lawn Man

    Tn Lawn Man LawnSite Senior Member
    Messages: 479

    Word of mouth and a very very small advertising budget.

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