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  • boog
    started a topic $ 15 a yard

    $ 15 a yard

    low balling has taken on a new low i opened my weekly trading post today to make sure my add was in there and right beside it there was a add that said mowing and weed eating $15 , home power washing $20 free estimates
    how can i or any one else compete with that ? i take it i will have to deal with this as long as i own this business its hard enough to get it started with out this garbage

  • Chaz
    replied
    Use it to your advantage. Put a line in your ad that says

    " We fix $15 cuts"
    i love this!

    Leave a comment:


  • SECTLANDSCAPING
    replied
    Theres a guy charging $65 a house for pressure washing. I called him a few times to bust his balls. I told him I would let him do all my houses for $65 if I was confident of his workmanship. He seemed to think he knew what he was doing. lol... I wouldnt wash your front steps for that. I make well over a $100 a hour and get 4/5 jobs I quote. Sell quality not price.

    Leave a comment:


  • abbot
    replied
    As far as the ad. You guys as landscaping service providers should have insurance. If not, GET it.

    If you have insurance, then you need to ADVERTISE IT. Put a small icon on every piece of promotional material "fully insured" Most smart people will go for a company that is insured. If they are not so bright. Explain to them this;

    "Well, Mr. Homeowner, yes, my price IS higher. But, with me you know that I am a REAL business. And because of that, I carry liability insurance. Here is a "statement of insurance and financial liability" from Nationwide Insurance. I'm sure you've heard of them. Yes, see right here? I carry 1 million dollars worth of liability. Now, what a lot of people DON'T know is this. If that cheap guy comes in and cuts your lawn, and happens to cut off one of his toes while doing it, guess who is liable? That's right, YOU are. Well, your homeowners insurance is. And you can bet that some jury will award him a huge settlement, because he can't walk right ever again. And he'll claim he can't WORK ever again either. Now, your insurance company will have to settle up with him. But that isn't the problem. The problem comes when they DROP YOU. They will do this because you hired an uninsured contractor, and they will see you as a great financial risk. When you go to look for homeowners insurance again, it will be a nightmare. Most companies will refuse to insure you, and the ones that will are going to charge you BIG dollars to do it. Now, you are probably saying to yourself "this is just a sales tactic". You are correct, Mr. Homeowner, it is. But, it is also THE TRUTH. Just call your insurance agent and find out."

    You'll notice that, while you are saying this, most people will open their eyes up REAL big. They NEVER thought of this! Now they see HUGE financial loss in paying higher insurance. And usually, they realize that paying twice the price for lawn service isn't NEAR as bad as paying 2 or 3 or 4 times the price for homeowners insurance. Or even worse, living WITHOUT homeowners insurance. Most of the time they sign right then and there.

    Just point out the reality of the situation. Oh, and ALWAYS have a statement of insurance with you

    Leave a comment:


  • Leon
    replied
    I like that comparison to Walmart..I shop there all the time I go for 1 item and come out with the whole kitchen sink. I am a have been doing good for a few years on that price system. I can do a Townhouse in about 10-15 mins I use a push or a 36" and if I have a helper for that day there string trim, edge, and blow time total time from unload to reload about 9mins. Thats only if we are doing 1, most of the time I am doing about 5-10. I had a lady call this week she does not want her lawn mowed every week so I charge her $25 every 2 weeks plus $15 for spot weeding her front flower bed. and that after I charge her $175 for Mulching, spade edging and weeding the flower bed. Mulch I pay about $2 per bag I charge for 3 bags @ $6 =$18 plus $147 for labor. Total time for me and a helper 45mins. I pay my helper $12per hour. My cost for the job $24 my approximate $141 not bad for 45min..WAIT my helper owe's me $3 he only worked 45min..just joking. The $15 add is a way to get the customer to call. I know my work ranks up there with the best. ANYONE can mow grass but the key is can you stand out from the rest. My price can stay the same for mowing why go up.

    Here a thought for you.... $15X4=$60 month just mowing. Now add $175 for mulching,egding,weeding flower bed up to 4bag of mulch, (spring). Fall Mulching $125, Fall seeding and aeration $125
    so we have mowing total $420 for (6) months of service +mulching $350+ seeding$125 TOTAL $795 monthly payments over 12months under $75.

    BUT they have to pay $250 down and now the BALANCE is $545 cost is only $49 a month for 11months. $49X150= WIN WIN
    ANYONE can mow grass but the key is can you stand out from the rest. My price can stay the same for mowing why go up.


    Leon
    Can You Envision the Possibilities...We Can

    Leave a comment:


  • CHEESE2009
    replied
    @LEON


    I think you are doing something right. You are adjusting yourself, so that you would be able to prevail if and when the economy goes to hell.

    If you can run a successful business, charging low prices, you're ahead of the game.

    In my area, there is so much competition that the 'hero' would need to have TONS of clients, and to be efficient as possible. These are good grounds to adapt to the worst, and grow from there.

    Running a business with low profit doesn't hurt unless you play your cards right. The top businesses in the world, like;

    McDonalds & Wal-Mart.... How expensive are they? Not at all! Sure you can say, "The quality is not the same as other places";

    1. It could be the same or better, for YOUR business.
    2. People don't care about quality anymore as long as you have generic standards.

    In a way, it can be strategic to lower costs whenever possible in order to remove your competition. You would need to cover a lot of ground first though, and be super-productive!
    Last edited by CHEESE2009; 03-20-2012, 08:45 PM.

    Leave a comment:


  • mpriester
    replied
    lowballers are everywhere. i had a guy walk up to me last year bragging he was charging $20.00 and acre. i looked at him and said congratulations with a smile and as he was walking away pulling his pushmower and carrying his gas can i looked at my wife with a grin and said he won't be here long. one of my best customers i got last year was being mowed by 1 man with a push mower and it took him 3 days to mow, they contacted me last may and have been using me ever since and i also do their snow and ice control. hang in there, the low ballers will price themselves out of business and not only that when the weather gets hot and these guys don't show up in 90deg plus temps they will call you and most won't argue price.

    Leave a comment:


  • element009
    replied
    WOW I don't know what to think because as some of you on here know I do charge $15 for lawn service. I Have about 60 home I cut for $15per week, however if you don't want weekly service the I charge $20-$25. Now these prices are only for townhomes and the yard are small takes about 15-20 mins. Does that make me a lowballer? I like these kinds of homes because they are small I can do about 4-5 per hour and not move my truck. I do a great job these clients refer me to everyone moms,co-workers, friends, etc and they sometimes have nice high$$ homes, I don't charge the referd client $15-$20. The smaller homes will buy add-ons before the larger homes
    Based on the situation you describe, your pricing system seems to make sense. However, the potential issue I see is that you are depending on having multiple clients in close proximity in order to maintain that low price. The only question is if you lose, say, half of those clients for some reason, does the $15/lawn earn you any profit? Assuming it doesn't, and you now have to decide to raise the price in order to retain the remaining clients at a profit, would they go along with the raise in price?

    It begs the wider question, which is: Should the price offered to a client reflect your expectation that other clients are in close proximity, therefore allowing you to charge less and still draw profit? Or should each price offered to each client be considered as an individual profit stream, independent of the existence of other clients for the price to remain profitable?

    Leave a comment:


  • dpld
    replied
    WOW I don't know what to think because as some of you on here know I do charge $15 for lawn service. I Have about 60 home I cut for $15per week, however if you don't want weekly service the I charge $20-$25. Now these prices are only for townhomes and the yard are small takes about 15-20 mins. Does that make me a lowballer? I like these kinds of homes because they are small I can do about 4-5 per hour and not move my truck. I do a great job these clients refer me to everyone moms,co-workers, friends, etc and they sometimes have nice high$$ homes, I don't charge the referd client $15-$20. The smaller homes will buy add-ons before the larger homes

    Leon
    Can You Envision the Possibilities...We Can!
    www.Envisionlawn.com
    1-888-412-LAWN


    you are pricing to some degree what your market will bare and allthough you choose to work a little cheaper you seem to have everything bulked up so it helps.

    the dollar amount being refferred is more of a token number and the low ballers that i am talking about are guys that do 50 to 60 dollar homes for $20.00. that is a low baller.

    from what you have described in previous threads and this one you don't come off as a low baller at all and from the size properties you are doing you are probably on the low side of average for pricing.

    Leave a comment:


  • willshome
    replied
    weekly trading post
    Sounds like a place to get cheap customers. I ask myself where would my mother look for lawn care, she would never open a "Trading post" and she would never hire a $15 mower. I have her and her friends look at all my ads before printing to see if they would call.

    Leave a comment:


  • Leon
    replied
    WOW I don't know what to think because as some of you on here know I do charge $15 for lawn service. I Have about 60 home I cut for $15per week, however if you don't want weekly service the I charge $20-$25. Now these prices are only for townhomes and the yard are small takes about 15-20 mins. Does that make me a lowballer? I like these kinds of homes because they are small I can do about 4-5 per hour and not move my truck. I do a great job these clients refer me to everyone moms,co-workers, friends, etc and they sometimes have nice high$$ homes, I don't charge the referd client $15-$20. The smaller homes will buy add-ons before the larger homes

    Leon
    Can You Envision the Possibilities...We Can!
    www.Envisionlawn.com
    1-888-412-LAWN

    Leave a comment:


  • dpld
    replied
    i think the most obvious thing that gets overlooked is it takes years and years to build a good money making business in this industry.

    sure you can put out some flyers and a couple newspaper ads or whatever and get some results and be making some money in a short while and that is all well and good.
    the problem is most of these people that you get responding to the new jaunty ads are the bottom feeders who are quick to hire based on price.

    any high end property owner that is not a poser and is trully worthy of the home they live in go by word of mouth from their other rich freinds or choose to entertain offers from businesses that target market them.

    the point i am trying to make is when you start a business in the landscaping field it is a decision you make for the long haul, it is not a get rich quick scheme and anyone who thinks they are gonna revolutionize the business will get slapped back down faster then side car susie.

    in my opinion when you start a landscape business you have to veiw it as something that is gonna pay offs many years from now and you will have many a days where you break even or struggle to get by.
    joe $15.00 cuts is not gonna be around long enough to realize that and if he does last he is gonna have to change his tune.
    you will never be able to do anything about the low ballers and all you have to do is stay away from the neihborhoods that hire these guys.

    it's real easy because the properties the low ballers take care of look like crap and do the bare minimum and the people who have a landscape that looks like disneyland don't hire low ballers.

    it takes a lot of experience and know how to make properties look pristine and any guy who does not have the smarts to charge accordingly probably has no clue about anything else.
    we are not the only ones who can see this, the true indescriminate lawn care consumer can see it as well because they compare their yard to everyone elses.

    Leave a comment:


  • stevef1201
    replied
    It's really funny but that 15 dollar a cut guys are erally doing a ot of business, in the poor parts of town!

    I charge what I need to make money, and work inthe wealthy parts of town, and make good money.

    Let the lowballers go, they will go broke when thier walmart mowers breakdown, and they cannot get them fixed, I laugh at them to thier face.

    Leave a comment:


  • boog
    replied
    Are there ways you feel you can differentiate yourself?


    Yea im a professional and businessman i go the extra mile for my customers you get what you pay for

    for instance today it was cold around 50 degrees i still went out and mowed it even snowed for a while i stayed and got the job done i didn't see no $15 Joe out mowing

    Leave a comment:


  • mattb7771
    replied
    Use it to your advantage. Put a line in your ad that says

    " We fix $15 cuts"
    lol i like this one

    Leave a comment:

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