Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > Lawn Care Marketing & Post your marketing material for review!

Lawn Care Marketing & Post your marketing material for review! Lawn Care Marketing, Advertising, and Public Relations Discussion.

Price vs Value - Do You Know The Difference?


Lawn Care Marketing & Post your marketing material for review!

Lawn Care Marketing, Advertising, and Public Relations Discussion.
Reply
 
Thread Tools Search this Thread
  #1  
Old 10-01-2007, 11:49 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 37,502
Rep Power: 10
Steve has disabled reputation
Default

This is a small part of a post Chestin made on his blog. Please check out his site for the full article.

Price vs Value - Do You Know The Difference? - In many cases, especially the green industry, businesses try to compete on price alone. They think the only thing the customerís worried about is the amount of the invoice youíre going to send. As a result, theyíre willing to undercut their prices simply to try and land new customers.

Well, Iím here to tell you that thatís a HORRIBLE way to run your business and itís not always necessary. If you do happen to have customers that are only worried about price, then I suggest you start looking for more customers that arenít.

You see, instead of competing just on PRICE, you should position yourself to compete on VALUE. That way, you can provide basically the same services, but not have to worry yourself to sleep at night thinking your customer will vanish the next time some low ball scrub comes knocking on their door.


One of the things I think about, is it possible for a new lawn care business owner to compete on value? I guess theoretically it is possible but I think it is very difficult to just start out and position yourself as having more 'value' than another start up.

I think this is why most new lawn care businesses, just start out, compete on price. Price is an easy concept to understand. If a competitor charges $x then I will charge ($x - $1).

Ultimately though I think the way to go is to create a brand that appears to have more value to it, which would therefore allow you to charge more.

Another thing is when you are just starting out, your work may not be at the level other more experienced businesses are able to achieve. So that could hold you back from positioning yourself as more valuable than a competitor.

But Chestin I think totally nails it when he says you need to go the extra mile in assisting your customers and that will really help you stand out as providing more value.

What's your view on this?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 10-02-2007, 12:29 AM
StartALawnCareBusiness's Avatar
StartALawnCareBusiness StartALawnCareBusiness is offline
Keith
 
Join Date: May 2007
Posts: 731
Rep Power: 0
StartALawnCareBusiness is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
Quote:
Originally Posted by [b
Quote[/b] ]What's your view on this?
My view is that Chestin is one smart dude.

__________________
Start a profitable lawn care business.
Reply With Quote
  #3  
Old 10-02-2007, 09:19 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 37,502
Rep Power: 10
Steve has disabled reputation
Default

Yes he is!

It's kind of interesting how the business cycle goes.

Step 1. You start your business and try to cater to everyone's needs.

Step 2. You get drained and you start pulling back a bit.

Step 3. You aren't around to help as much as you used to.

Step 4. A new lawn care business steps in and starts at step 1. They are then to potentially offer a better value and they get the work.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #4  
Old 10-02-2007, 01:09 PM
LawncareMarketingMagic LawncareMarketingMagic is offline
Lawn Care Business Consultant
 
Join Date: Jul 2005
Location: Rock Hill, SC
Age: 40
Posts: 132
Rep Power: 0
LawncareMarketingMagic is an unknown quantity at this point
Default

Quote:
Originally Posted by [b
Quote[/b] ]One of the things I think about, is it possible for a new lawn care business owner to compete on value? I guess theoretically it is possible but I think it is very difficult to just start out and position yourself as having more 'value' than another start up.
The answer is without a doubt, 'YES', it's definitely possible for a new LCO to compete on value. In fact, just starting out is the very time to do so.

Why? First off, because you don't really have processes in place and you could easily implement them right from the start. Once you have a routine established it's much more difficult to make changes.

Second, because you want to get quality, loyal customers right from the start and if you start off your business competing on value instead of price, you'll build a much more stable business than if you were simply competing on price.

So, how can a new guy just starting out compete on price? Well, the easy answer is to go the extra mile and do the things the average LCO isn't willing to do. Of course that's the 10,000 foot answer so I'll try to bring it down a little.

Offer service that others aren't willing to offer. Things such as a 'lawn/landscape diagnostic report' after each service visit. Much like the print out you get from JiffyLube or any other express oil change service, it's a simple page that lists all the services performed, offer suggestions for improving the lawn/landscape, and mentions the tentative date for the next service. That's one idea.

Another one would be to simply do the little things some LCO's don't do such as blowing all the grass off the hard areas (I know, I know, but most low-ballers don't do this), adding a pattern to the lawn, making sure the lawn is completely emaculate before leaving (no garbage, debris, etc.), or something as simple as showing up when you say you will.

Something else you could offer would be a personal follow-up visit to make sure everything's as they anticipated. I know many LCO's are afraid to interact too much with their customers but that's one of the best things you could do. Stopping by once a month or even simply calling them on the phone to find out how things are going will go a long way towards building a lasting relationship with your clients, plus, it gives you another opportunity to upsell them additional services.

So, is it possible for new guys to compete on value? Absolutely! Does it take a little extra effort? You bet. But, it's effort that will more than pay off down the road.
__________________
Chestin
Reply With Quote
  #5  
Old 10-02-2007, 02:08 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 37,502
Rep Power: 10
Steve has disabled reputation
Default

I certainly hope everyone is reading this otherwise they are missing out on key elements of success.

Also, just consider what Chestin could do for your business if you contacted him for further 1-on-1 business assistance.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Hello Everybody
budspop
Today 11:42 AM
Today 11:42 AM
by budspop
0 7
scag SWZT review!
mattthelawnguy
07-23-2015 02:28 PM
Yesterday 06:12 PM
by rootytalbot
7 313
Hello!
brandycarlton
Yesterday 12:31 PM
Yesterday 03:54 PM
by Steve
1 110
Assessing the Market
NJDB60
07-27-2015 03:25 PM
07-28-2015 09:24 PM
by Steve
2 218
Whats wrong with this...
GreenWorx
07-28-2015 07:56 PM
07-28-2015 09:09 PM
by Steve
2 196
Funny craigslist post
GreenWorx
07-28-2015 07:17 PM
07-28-2015 09:02 PM
by Steve
2 204
Watch out for this -...
rootytalbot
07-22-2015 02:13 PM
07-28-2015 09:00 PM
by Steve
7 352
NewVenture
NJDB60
07-27-2015 03:38 PM
07-28-2015 08:58 PM
by Steve
1 203
Pricing issue
Mr. Mow
07-07-2015 06:15 AM
07-27-2015 06:40 PM
by GreenWorx
17 727
how to make customers...
Bradcook21
05-27-2015 05:04 PM
07-27-2015 06:08 PM
by GreenWorx
15 2,910
Need your help, Gopher...
Chilehead
07-23-2015 07:02 PM
07-27-2015 11:28 AM
by Steve
11 355
Should I buy this Exmark...
googus
07-03-2015 09:22 AM
07-27-2015 11:27 AM
by googus
8 547
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
07-27-2015 11:22 AM
by Steve
94 10,393
Dogs
Mr. Mow
06-29-2015 02:37 PM
07-25-2015 07:50 AM
by Chilehead
12 2,388
Just about mid year, how...
GreenWorx
06-24-2015 07:05 PM
07-22-2015 07:31 PM
by Chilehead
14 2,448
Learning as I grow -...
WarriorLandscapingCAN
07-18-2015 07:46 AM
07-21-2015 10:53 AM
by Steve
3 294
Large dirt mound removal
purdue1973
07-09-2015 07:45 PM
07-20-2015 12:55 PM
by Steve
6 411
Hey everyone
Fantasy landscaping
07-09-2015 06:53 AM
07-09-2015 11:47 AM
by Steve
1 316
Quickbooks Online
jscarolina
07-08-2015 07:54 AM
07-08-2015 12:55 PM
by Nate10928
1 335
I dont know what to do...
Bradcook21
06-21-2015 08:49 AM
07-07-2015 09:48 PM
by SGL1
16 2,710
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 12:06 AM
07-07-2015 02:54 PM
by GreenWorx
13 3,661
Is it too late to do...
markty
06-16-2015 05:28 PM
07-07-2015 01:00 PM
by problem solver
9 2,468
Hi everyone
Mattw
07-06-2015 05:59 PM
07-07-2015 10:18 AM
by Steve
1 342
4th of July parade...
Steve
07-06-2015 10:35 AM
07-06-2015 10:35 AM
by Steve
0 290
Unemployment rates drop,...
Steve
07-02-2015 12:40 PM
07-06-2015 10:30 AM
by Steve
4 457
another newish job for me
holymoly
06-07-2015 08:34 AM
07-03-2015 02:06 PM
by American L&T
9 2,463
Before & After tree...
COREtreeservice
07-01-2015 09:20 PM
07-01-2015 09:20 PM
by COREtreeservice
0 388
Ready to learn and get...
Koley Lawn & Landscape
06-28-2015 05:16 AM
07-01-2015 11:26 AM
by Steve
8 2,230
Three Stripe Land Care...
hammr04
06-30-2015 07:19 PM
07-01-2015 11:24 AM
by Steve
1 359
Country Life Lawn Care
darleneh
06-29-2015 11:24 AM
06-30-2015 01:25 PM
by Steve
3 2,067
» Popular Tags
ad landscaping advertising aerocore apartment bid apartment lawn care estimate applying billy goat brushcutter blowout bob villa bush curb appeal services deliquentaccounts demonstration design equipment dealer equipment rental financials flyers foreman free advertising free lawn care growing a lawn care business hardscapes hiring how to husqvarna hydro increase customers invoicing landscape landscape services landscaping landscaping training lawn aeration lawn care lawn care busines plan lawn mowing marketing marketing secrets more customers business mulch new business ordinance patio install per hour charge pricing profit on employee quickbooks quickbooks online roundup scag secrets to landscaping sell the vision seo shell shreaded small engine repair snow plowing solo sq ft square foot swzt tree tree pics up sell employee web design website website design wood www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 12:42 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 12:42 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy