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View Full Version : "You're too expensive."


makbootzy
01-05-2008, 01:55 AM
"You're too expensive." Here, your dream customer claims your costs are simply out of her ballpark.The real issue here is value. By saying you're too pricey, a customer is likely expressing a lack of understanding about how you may be of value to them. It's up to you to show them. "Ignore the issue of price," says Weiss. "Show them that what you have will provide them with a 20% return. There's no such thing as too expensive; they don't see the benefit."Avoid offering to cut your rates
that merely devalues what you do. Instead, try to get additional information about what the client's financial means are. That may suggest a different product or service that matches their pocketbook without your having to offer a discount. "Ask them if they have a budget or some sort of range that they would be willing to pay," says Elaine Berke of EBI Consulting of Westport, Mass.

Just found this thought some might want want to check it out.

http://www.microsoft.com/smallbu....rs.aspx (http://www.microsoft.com/smallbusiness/resources/marketing/customer-service-acquisition/reward-your-best-customers.aspx)

Steve
01-05-2008, 04:13 PM
Hi makbootzy,

Very interesting post!

Have you ever found yourself dealing with that situation?

How did you handle it?

StartALawnCareBusiness
01-05-2008, 08:17 PM
If you are not running into that complaint occasionally when pricing lawns, you might be underpricing your services.

Ideally, you don't want every single lawn care customer that comes your way. Many customers shop around for the lowest price on yard work. So, if every customer accepts your price, you are probably the cheapest guy around. Being the cheapest might get you a lot of customers but it won't make you very profitable.

I've always thought a rejection rate of 10% to 15% is acceptable based on price alone. If 1 out of 10 potential lawn care customers reject you based on price then you know your other customers are paying a fair price with a slight premium for your high quality service.

When you give your estimates, look your customers in the eyes to judge their reactions. Does every customer look releived and accept your price immediately when you tell them a price? If so, you probably can raise your price a few dollars on the next customer.

I have always liked the idea of selling quality over cheap price. It's okay to negotiate slightly on a lawn you really want but never cut your bids significantly. If a customer won't pay your price after you explain your know-how and your quality work, just say "thank you" and move onto the next estimate.

Keith

landonkade
01-05-2008, 08:41 PM
Quote[/b] (StartALawnCareBusiness @ Jan. 05 2008,9:17)]If you are not running into that complaint occasionally when pricing lawns, you might be underpricing your services.

Ideally, you don't want every single lawn care customer that comes your way. *Many customers shop around for the lowest price on yard work. *So, if every customer accepts your price, you are probably the cheapest guy around. *Being the cheapest might get you a lot of customers but it won't make you very profitable.

I've always thought a rejection rate of 10% to 15% is acceptable based on price alone. *If 1 out of 10 potential lawn care customers reject you based on price then you know your other customers are paying a fair price with a slight premium for your high quality service.

When you give your estimates, look your customers in the eyes to judge their reactions. *Does every customer look releived and accept your price immediately when you tell them a price? *If so, you probably can raise your price a few dollars on the next customer.

I have always liked the idea of selling quality over cheap price. *It's okay to negotiate slightly on a lawn you really want but never cut your bids significantly. *If a customer won't pay your price after you explain your know-how and your quality work, just say "thank you" and move onto the next estimate.

Keith
keith

i was going to see what u think about this place. is there a way u could give me a ball park figure. they want weekly(growing season) cuts and bi-weekly(slow season) and other things done.

103 sweetwater dr dothan al 36303



thanks,
Matt

makbootzy
01-06-2008, 12:24 AM
I havent started in business yet....just about done with my plan and then I will present it to Vocational Rehabilitation for fundinding.

Steve
01-07-2008, 03:10 PM
Quote[/b] ]I will present it to Vocational Rehabilitation for fundinding.

Could you tell us a little about this process?

Is there a price range you are looking for to get started?

What will you be getting with the funding?

I bet a lot of new business owners would be interested in knowing how all this works.

makbootzy
01-07-2008, 10:47 PM
Well I wasnt sure what I wanted...I was going to go to a tech school for electrician but they were full and thought about Washburn University. Well my mom use to work for srs about 15 years ago and she said that VR funds small business start up. I looked into that and then started on my business plan for a lawn service. I have had ALOT of help here and the small business develpment center(Services here are free too). If my plan is approved VR will fund my business with cost caps. I get 2000 for business establishment, 2700 for equipment, 900 for supplies and 2000 for a vehicle with 1000 for repairs to it. I am able to spend money out of business establishment for equipment too. I am right now still over budget but they can get approval for more money. I am trying to sell my car though to cover costs.

makbootzy
01-07-2008, 11:21 PM
Here is a list of my initial needs (may need work)

Steve
01-08-2008, 12:24 PM
I made it into an image so everyone can see it.

I like what you are doing here. I think this is very well thought out!

Quote[/b] ]I get 2000 for business establishment, 2700 for equipment, 900 for supplies and 2000 for a vehicle with 1000 for repairs to it. I am able to spend money out of business establishment for equipment too. I am right now still over budget but they can get approval for more money.

How does this funding work? Is it a loan? What is the interest and how long do you have to pay it back?

Also, how does this compare to going to a bank for a loan?

Is this funding available across the country or just in your area?

makbootzy
01-08-2008, 12:47 PM
Quote[/b] (Team Gopher @ Jan. 08 2008,1:24)]How does this funding work? Is it a loan? What is the interest and how long do you have to pay it back?

Also, how does this compare to going to a bank for a loan?

Is this funding available across the country or just in your area?
This isnt a loan...how does it compare it doesnt because its free money! http://www.gophergraphics.com/forum/iB_html/non-cgi/emoticons/biggrin.gif Funding is available everywhere for people with disabilities.
This program is great compared to just recieving SSI....because they want you to do better than just giving up! So if you want to go to school or start a business they will help you toward that goal.

Steve
01-08-2008, 01:41 PM
Oh ok, so Vocational Rehabilitation assistance isn't available to just anyone? Can you tell us who is eligible for such assistance? I am confused on how all this works?

Quote[/b] ]This program is great compared to just recieving SSI
Is that Social Security Income?

makbootzy
01-08-2008, 01:54 PM
Quote[/b] (Team Gopher @ Jan. 08 2008,2:41)]Is that Social Security Income?
yes
Here is the site for Kasashttp://www.srskansas.org/rehab/text/VR.htm

Steve
01-08-2008, 02:00 PM
Oh this is just fantastic.

I never knew such services were made available to anyone!

This is awesome!

I hope others reading this keep this option in mind!

I am going to talk about this in an upcoming GopherHaul. Would you like me to include your picture on the show? I think this would be very inspirational to others.

makbootzy
01-08-2008, 02:52 PM
Quote[/b] (Team Gopher @ Jan. 08 2008,3:00)]Oh this is just fantastic.

I never knew such services were made available to anyone!

This is awesome!

I hope others reading this keep this option in mind!

I am going to talk about this in an upcoming GopherHaul. Would you like me to include your picture on the show? I think this would be very inspirational to others.
Here is a pic

Steve
01-08-2008, 06:38 PM
Hi Rick,

Thank you!

Have you gotten a chance to meet any others in this organization? Were any of the others getting involved with lawn care as well or were they doing all other sorts of businesses?

makbootzy
01-08-2008, 09:06 PM
Each person meets with their VR counselor in a private meeting room. So everything is kept confidential.