Each of has come across some type of lowballing in our business whether it be the $50.00 lawn someone is doing for $35.00 or the french drain worth $1500 the new guy is doing for $700. If you have been in business for any length of time you understand what it costs to run your business and what it takes to make a profit but the new guy just starting out does not and will price a lawn that takes him an hour at $25.00 and come home to his wife and say "I'm making $25.00 an hour mowing I should have done this a long time ago" Here's the theory: The new guy will do one of three things continue to charge the $25.00 and think he is making good money and get so booked he can't even turn around without running into a customer. Once he gets to 100% capacity he will start to do one of two things either start giving bad service to his existing customers or hire another guy and continue to expand. He will hire his paroled wifes cousin to help him out and we all know that never works out. So eventually this particular guy will implode because he has way to much work or his truck just blew up and he doesn't have a $1000 bucks to fix it and slowly but surely start losing customers which we will slowly but surely pick up. The next scenario is this same guy will quickly realize he is not making the kind of money he thought when it costs him $100 to fill his truck and mowers so he starts to raise his prices but now his route is not as dense and he is unable to get the volume of customers required to make a decent living so he will go back to work at the local factory there by leaving his customers to be picked up by us. The third scenario is the one that should be of most concern to us. He starts to realize he is not making enough money but his wife makes pretty good money so he has the time to slowly raise prices and the time to aquire new customers when his mower or truck breaks down he doesn't have the cash but he does have good credit. So he raises the $25.00 lawn to $30.00 we are still pricing them at $35.00 it takes a lot longer for this scenario to implode because he only needs to make $30,000 a year to get by this particular scenario will only implode when he starts thinking I'm gonna keep prices at $30.00 but I'm gonna hire a couple guys and triple my business. Now if he is a pretty smart guy he can manage his business effectively enough until he realizes that he needs to raise prices there by becoming a legitimate LCO we have to compete with, if he not so smart his employees will be stealing from him and slowly causing him to lose customers. There are exceptions to the theory we all know a guy that has been doing lawn care for 15 years charging lower prices but he typically has the older lady bi weekly customers who pay him in cash and he has no desire to expand his customer base he makes enough money to pay his double wide payment and buy a 12 pack on Friday this is the guy to be least concerned with. So what does all this mean it means that the business we are in will have low priced competition but we have to be in a position to pick up new customers as the low priced competition goes away which means we always have to be in a position where we can add new customers. So if your having trouble with lowballers always have an avenue to aquire new customers whether it be advertising, networking, customer referrals whatever works best for you. We all lose customers for whatever reason but its the customers you don't have now that will make or break your business in the future. Be consistant be visible and be available the next customer may be worth $10,000.